Auto insurance in Arkansas is amongst the cheapest in the United States. In 2009, the average cost of an auto insurance policy actually lowered by over 4% and the average premium during this period worked out to be $1,282. When compared to the national average price of $1,735, this represented a huge saving of $453. Because Arkansas is less densely populated than other parts of the United States, the region is considered to be low-risk in terms of potential accidents actually occurring.
Arkansas is another US state that operates using the Tort system which states that there must be a party to bear responsibility in the event of a road traffic accident. In Arkansas, minimum liability cover is set at 25/50/25. This equates to the following level of coverage:
- $25,000 worth of bodily injury liability per person
- $50,000 worth of bodily injury liability per accident
- $25,000 worth of property damage cover
Unlike many other states using the Tort system, Arkansas does not require drivers to carry cover against uninsured or underinsured motorists although this useful add-on is highly recommended.
The affordability of auto insurance in Arkansas means that other add-ons should also be considered. Motorists with a vehicle of less than three years old should seriously consider the benefits of comprehensive insurance cover as this will usually offset the outstanding balance of loans secured against the vehicle if it is declared a total loss after a road traffic accident. Motorists are also advised to consider collision damage cover and personal injury protection for complete peace of mind.