The state of Arkansas requires that all registered vehicles carry minimum auto liability insurance in the amount of 25/50/25, that is $25,000 per person per Louisiana personal injury accident, $50,000 for all persons, and $25,000 to cover property damage of the other party. It is important to keep in mind that these amounts are only the minimum amounts required by law. Because the risk of an auto collision is significantly higher during a teen’s first year behind the wheel and because Arkansas is a Tort state, Arkansas auto insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. If you plan to add a teen driver to your policy instead of purchasing a separate policy, keep in mind that your annual rate will increase anywhere from $1,200 to $4,900 a year, with an average of $2,171 a year.
Although auto insurance premiums will increase if you add a teen to your policy or purchasing teen auto insurance will always be pricier than other policies, there are ways to qualify for discounts on teen auto insurance. Auto insurance companies offer discounts ranging from 10-15% or more for:
• Maintaining at least a B average
• Successful completion of a state approved safe driver course