What You Need to Know About Auto Insurance in Arkansas

If you’ve recently purchased a new car, you’ll want to get auto insurance coverage right away. This is because Arkansas requires new car owners to sign up with their insurer within a certain amount of time. That means you have thirty days to find an insurer that best suits your needs. Rates vary depending on your ZIP code, your car, and your driving history. compare auto insurance quotes

Rates vary based on your ZIP code

The different auto insurance rates in your ZIP code depend on many factors. Among these factors is the amount of crime in your area. This is an important factor for insurers because it increases the cost of insuring vehicles that have been stolen or vandalized. If your ZIP code has a high crime rate, your rate will be higher than if you live in a safe area.

Your driving record

Your driving record is an important factor when it comes to determining your insurance rates. Insurers review your driving history when you apply for a policy and when you renew it. If you have any violations on your driving record, your rates can go up. Additionally, bad violations can cause your policy to be dropped.

Your car

As a resident of Arkansas, you must carry liability insurance on your car. This type of insurance covers your medical expenses and property damage in the event of an accident. It is important to have adequate coverage because you may be held responsible for another driver’s unpaid bills if you cause an accident. You can add other types of car insurance if you want to cover more than the minimum requirement.

Your age

Your age plays a large part in the cost of car insurance in many states. However, there are a few states where age doesn’t play a factor. These include California, Hawaii, Michigan, North Carolina, and Massachusetts.

Your car’s value

You’ll need insurance to protect the value of your car in case you’re involved in an accident. Fortunately, Arkansas has lower car insurance costs than many other states, with an average cost of just over $21,000 for a new car. The price of auto insurance varies by ZIP code and driving history. You can also bundle your home and auto insurance policies with companies like Progressive. In addition, Arkansas requires that you wear a seat belt in the front of the vehicle.

Your credit score

The insurance industry is increasingly using credit scores to determine insurance rates. This is an unfair practice that disproportionately affects low-income and middle-class consumers. Insurers believe that credit scores reflect risk factors, such as education level and race. While this is a common practice, critics say it is unfair and discriminatory.