What Kinds of Optional Arkansas Car Insurance Coverage are Available?

Arkansas car insurance customers can choose to buy collision and/or comprehensive coverage to protect their own vehicle. If they take out a loan to pay for their car, the lender will probably insist that the owner buy it so that the lender’s interests are protected until the loan is completely paid off.

Collision coverage pays for the cost of repairing the car after an accident has occurred. If the damage is severe enough that the car cannot be repaired, the policy pays out an amount equal to the cash value of the vehicle. Comprehensive insurance protects against losses from other causes, including flooding, severe weather and acts of vandalism. It also pays out if the car is stolen.

In a situation where the car is financed and the owner owes more on the vehicle than it’s worth, he or she may end up having to continue making payments on something that is no longer drivable. Gap insurance is available to bridge the gap between what is owed on the car and its Blue Book value and can be added to an insurance policy quite easily.

Another type of optional car insurance available to drivers in Arkansas is uninured/underinsured motorist coverage. Uninsured motorist coverage pays out if the at-fault driver does not have coverage or the accident is a hit-and-run. Underinsured motorist coverage pays the difference if the at-fault driver doesn’t have enough coverage to pay the full amount of a claim.