If you just started to drive in Arkansas or changed your car, you might want to know what types of auto insurance are available and how to get the best deal. As in every state, there are minimum and recommended coverages, but – at the end of the day – you need to consider your personal circumstances before you search for cheap car insurance in Fort Smith, Arkansas.
The Minimum Car Insurance Requirements in Fort Smith, Arkansas
To legally drive a vehicle in Fort Smith, Arkansas, you will need a minimum level of coverage. This is determined by the state as:
- Bodily injury coverage of $25,000 per person or $50,000 per claim.
- Property damage coverage of $25,000 per claim.
Of course, this level of coverage will not be enough for many drivers. It will not cover the repair or replacement costs or your liability as a driver. Always check out the additional policies to see if you need them for your peace of mind and financial security.
Additional Coverage You Might Need
Apart from the minimum coverage, The Zebra lists a couple of useful insurance policies you might consider taking out. These are:
- Comprehensive coverage.
- Collision insurance.
- Finance insurance (loan or lease pay off).
- Roadside assistance and rental car coverage.
- Uninsured or underinsured motorist insurance.
- Personal injury protection.
The above insurance policies are packaged in different bundles by each company. Find the level of coverage that gets you the most protection and value at the lowest cost.
The Cost of Auto Insurance in Arkansas
The price of auto insurance in Arkansas is similar to the national average cost. On average, you can expect to pay $1473 a year for a comprehensive policy with a $1000 deductible.
There are several car insurance companies operating in Arkansas. The cheapest provider, based on the average cost of a policy, is Travelers. If you are an average driver, you will be paying $1115 a year. The second-cheapest company is USAA, followed by Safeco. Allstate is the most expensive among the providers, costing the average driver $3132 per year.
Who Can Get Cheap Car Insurance in Fort Smith, Arkansas?
Generally, people with good credit and a perfect driving record will get better rates than those who have adverse credit and at-fault accidents, speeding tickets, or DUIs.
The cheapest age group to insure, according to the State and Local Government website, is people between 50 and 60.
Some ZIP codes are also much cheaper than others. If you live under the ZIP codes 72901 and 72919, you are more likely to be offered cheap car insurance in Fort Smith, Arkansas, compared with people in other ZIP codes.
What Affects the Price of Your Auto Insurance?
When calculating the cost of insuring you and your vehicle, companies take into consideration various things. They are all related to your risk levels. The higher the risk category the insurance company assigns to you, the more you will be likely to pay. Some factors include:
- Your location/ZIP code.
- Your driving record and past accidents.
- The number of citations on your license.
- Your age.
- Your credit rating.
- Your gender.
- Your marital status.
- What vehicle you drive.
If you have driven for years without getting a speeding ticket, at-fault accidents, or DUIs, you will be able to save an average of 19 percent on your car insurance compared with those who were less careful. You may also qualify for additional good driver bonuses with some insurance companies.
Good credit can save you up to 50 percent on your auto insurance, compared with those with less-than-stellar scores. People with the worst credit rating are likely to pay $2727 on average, compared with $1490 on average for those with a good credit rating.
If you are a young driver aged 16 to 25, you will be considered high-risk, and your price will be much higher than those who have had a chance to prove that they are good drivers.
The typical price of car insurance for teenagers in Arkansas is $4909, with 16-year-olds paying the most at $7227 on average. The good news is that by going on their parent’s insurance policy, 16-year olds will be able to reduce their rate from $7227 to $4437.
A DUI will increase your car insurance cost by 27 percent, while an at-fault accident is going to raise your prices by 32 percent. Speeding tickets will add 19 percent to the cost, and bad credit will make your policy cost up to 50 percent more.
If you live in highly populated areas of Fort Smith, you are likely to pay more due to the greater risks of accident, theft, and other incidents. Insurance companies also track the number of vehicle-related incidents in different areas to determine their risk.
Of course, the car you drive matters a lot, too. If you drive a luxury car, it is evident that the damage will cost much more to cost than fixing up an average family sedan. It is recommended that you take out comprehensive coverage to make sure you can pay for the repairs in case you get involved in an accident.
How to Get Cheap Car Insurance in Fort Smith, Arkansas
The first thing you have to do before you choose an insurance company and a policy is to assess your needs. As an example, if your car is only worth a few hundred dollars and your deductible on the comprehensive coverage would be $500, it might not be a good idea to purchase this policy. Likewise, if you only use your car for visiting the local supermarket, breakdown coverage might be an unnecessary expense. Check out our guide on what car insurance covers.
Don’t forget to compare the different quotes and see if you qualify for bundle discounts or additional savings based on your driving history.
Finally, it is important to know that the lower deductible you choose, the higher the insurance company’s risk will be, so the more you will pay for your policy. If you are not happy with the quote, you can always increase your deductible to reduce your car insurance price.
Getting the right level of coverage for your vehicle will protect you and your finances long-term. Do your research to make sure you get the most suitable policy at the best price.
Check this out if you need additional information, resources, or guidance on car insurance.
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