Reader’s Question:

What are the different types of auto insurance policies here in Arkansas?

Miranda

Little Rock, Arkansas

When you own a car, it will be time that you would realize why other people would rave about auto insurance policies. Not because they are fanatics of such, but because of the cost you would have to pay in applying for one. Actually, the cost would depend on the type of auto insurance policy you will apply for. So, before applying for one, know and understand the different types of auto insurance policies.

Physical Damage Coverage. This includes comprehensive and collision coverage on the car. Comprehensive coverage, from the word itself, this type of auto insurance provides comprehensive, complete, wide-ranging coverage to you and your car against all forms of theft, fire, accidents, etc. making it expensive and yet, the most common type of auto insurance policy. Collision coverage pays damage to your car in case of an accident. Major perks of applying for the said auto insurance policy would include privileged claim against your insurer even if the other person involved in the car accident would refuse to give out insurance details or worse, is uninsured. It does not require you being at “fault” for supposed events for you to file claims against the company. However, you must read and inspect the fine details of the policy because in some instances, insurance companies will refuse to insure 100 percent of the value of a car and would only insure, let’s say, 80 percent of it.

Liability Insurance. This includes bodily injury liability that pays damages or injuries that you, the policyholder or chosen driver has caused to someone else. Another one is the property damage liability which pays for damages to properties caused by you.

Uninsured/Underinsured Motorist Bodily Injury coverage pays bodily injury caused by an uninsured and/or underinsured driver

Reader’s Question:

How important is truck insurance for a truck owner?

Blake

Jacksonville AR

Insurance is one of the rising needs of the world. May it be a loved one, a business venture or a truck that you want to be insured, nothing beats the feeling that at the end of the day, somebody takes care over your priced possessions. Insurance is also one of the fastest growing and lucrative businesses in the market. Therefore, with the precedent given, insurance companies have sprouted just about everywhere in order to provide you with the best policy there is. But before that, what is vehicle insurance? How does it work?

There are hundreds of companies that offer vehicle insurance. Truck insurance falls under the vehicle insurance category. It covers its owners against physical damage and/or losses sustained by them due to unanticipated situations such as accidents, theft, loss, weather, fire, etc. Apart from providing protection, this insurance is also mandated by law, in most countries. Then again, the minimum insured percentage requirement is not applicable to all. In general, it usually covers for liability, fine or accidental physical damage, and cargo overages.

For a truck owner, a truck is not just a vehicle for them – it’s a means of living. So it is always sensible to look for a specialized truck insurance provider. One major advantage of such is that they are able to settle claims in a quick and well-organized behaviour since it is their forte and focus. For truck owners, the lesser time for a truck to be off the road would mean higher profit for them. In conclusion, all truck owners that strategize on the long-term welfare of its vehicles must choose a specialized and well-established truck insurance provider. On the other hand, there are also some non-specialist truck insurance providers that may offer you competitively lucrative insurance packages at a lower cost. However, when it comes to the fine details of the trade, they may just be a risk.

When considering a truck insurance policy, all truck owners are advised to examine all contingencies and damages that the policy covers. It is also recommended to scrutinize all details warily to be fully aware of all the terms and conditions of the insurance company. If and when you have already acquired your quote, carefully examine this too in addition to price. Furthermore, truck owners should also try not to be beguiled by cheap insurances. Whenever an insurance company would offer extraordinary coverage for a relatively lower price, meticulously inspect all the details which are excluded from the policy. Be mindful that sometimes, it is not always about the price – just as proper maintenance is important to reliability, so is insurance for longevity and security.

Reader’s Question:

What are the possible ways for me to obtain cheap auto insurance in Arkansas?

Marc

Clarksville AR

There are several possible ways for you to obtain cheap auto insurance in Arkansas. Availing yourself for auto insurance discounts is among the available options for you to obtain cheap auto insurance. You can go online and check which ones offer all the discounts you need or call the different companies in your area that you know of, then compare their offers that can be applicable to you.

Some discounts are usually given to those who are at a lesser risk of getting into an automobile accident or having their car stolen or damaged. Some insurance companies also give discounts to those who have a clean driving record for a specific number of years. Some also give discounts to good students, senior citizens, or retirees. If you’ve installed a lot of safety features in your car, you’ve lessened its risk of getting stolen or vandalized, and this can entitle you to another discount.

Certain insurance companies offer their own type of discounts so another quick online search can help you come up with the discounts that you can possibly avail of.

When you’ve finally decided on which company to purchase your auto insurance in Arkansas, don’t sign those papers right just yet. When you get insurance, this doesn’t mean that the company immediately pays full coverage for all your expenses.

Try asking your insurer about your deductibles. There is still an amount you have to pay, which is called your deductible, and your insurer merely covers the remainder. For example, if you get into an accident that causes $1000 worth of damages and you have a $100 deductible, you pay that amount first and the insurance company shoulders the $900. Ask your insurance company if you can get a higher deductible and ask yourself if you can afford it. A higher deductible simply means lower insurance costs.

Reader’s Question:

Will my auto insurance in Arkansas provide me with coverage if I drive to Mexico?

Carrie

Little Rock, AR

Your auto insurance in Arkansas will not provide you with any coverage at all. However, your driver’s license will be honored in that country, so you need not apply for an International Driving Permit (IDP).

Before driving across the border, make sure that you obtain coverage that will be honored in Mexico. There are a number of insurance providers in Alabama that offers Mexico auto insurance, so better speak with your agent to get information on the matter. If your auto insurance in Arkansas does not carry such insurance, then you can readily obtain it from insurance companies in bordering towns in Mexico by presenting your American license. Just make sure that the coverage limits you obtain be equivalent to the amount of your auto insurance in Arkansas. Having no sufficient coverage in this country could result in a number of unnecessary hassles. If you got into an accident, you will be held in prison until the police get to establish who is at fault. And if you are found liable and are not able to present any proof of financial responsibility, then your return to the country may be compromised. You may even be charged criminally because of this especially if the accident caused considerable damage to persons and/or properties.

Reader’s Question:

My girlfriend totaled her vehicle and she got full coverage on her automobile. However, her drivers license is suspended. We are just wondering if she could still make a claim even if his license is suspended during the accident? She lives in Arkansas.

James

Little Rock, AR

Your girlfriend should be able to get coverage under her collision coverage even though her license is suspended at the time of the accident- unless of course there is exclusion in her policy that states otherwise.

I suggest that your girlfriend contact her auto insurance company in Arkansas and ask about the terms of her auto insurance policy. She may also ask if she could place a claim under her collision coverage even if her license is suspended at the time of the accident.

Insurance providers varies on their internal guidelines. Depending on what is the underwriting on her auto insurance policy, it may be that her car insurance is still in effect even if she does not have a valid drivers license.

Usually though, at the time of the claim the status of your license should not affect policy status and the claim would be paid.

Reader’s Question:

I need help. I was caught driving without auto insurance in Arkansas for the fourth time and I am just wondering what the penalties are? Am I going to jail?

Janice

Little Rock, AR

All drivers in the state of Arkansas are required to have the minimum amount liability insurance coverage in the amount of 25/50/25. This stands for $25,000 for bodily injury coverage of one person per accident up to $50,000 per accident and $25,000 for property damage coverage. If you are found driving without auto insurance in Arkansas there is a graduating scale of penalties, all with mandatory fines. If you are caught driving without auto insurance for the first time you are required to pay between $50-$250. If you are caught driving without auto insurance in Arkansas for the second time you are required to pay between $250-$500. Any third or subsequent violation will result to imprisonment up to a year and a fine between $500- $1000 or both.

So If you get caught driving without auto insurance in Arkansas for the 4th time you will likely be required to pay the highest amount of fine and will likely serve jail time also. I suggest you contact the Arkansas Department of Motor Vehicle to get more information as to what the penalties will be for being caught driving without car insurance for the 4th time.