Gap Insurance in Arkansas (2024)
Gap insurance is an optional coverage that can provide added financial protection if you total your car or someone steals it.
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Written byJennifer Brozic
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Jennifer Brozic
18+ years experience in finance writing
Background in communications for banks and credit unions
Jennifer is a content marketing writer specializing in the financial services and insurance industries. Her areas of expertise include budgeting, building credit, loans, and more.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated October 30, 2024
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Table of contents
Gap insurance — also known as guaranteed asset protection — can help protect your finances if you total your leased or financed car or if someone steals it. After your insurance company declares your vehicle a total loss, it typically pays out its actual cash value — not the amount you owe on it.
Gap coverage helps pay the difference between the actual cash value (ACV) of the car and the remaining balance on your loan or lease, if there is one. The average monthly full-coverage car insurance cost is $280 in Arkansas. Adding gap coverage to your policy typically costs another $2 per month.
Here’s what you need to know about securing gap insurance in Arkansas.
Quick Facts
Gap insurance is optional in the state of Arkansas.
Arkansas drivers can purchase gap insurance from dealerships, insurance companies, lenders, and stand-alone providers.
Arkansas only requires drivers to maintain liability coverage.
How gap insurance works
Cars depreciate quickly. When you file a comprehensive or collision claim, the insurance company pays the vehicle’s ACV in the event of a total loss. But the compensation you receive may be less than what you owe on your car loan or lease.[1] In these situations, it’s up to you to make up the difference.
With gap insurance, the insurer covers the difference between the car’s value and what you owe. Without it, you’d have to keep making monthly payments on a vehicle you no longer own or pay off the loan or lease in a lump sum.
What gap insurance covers in Arkansas
Gap insurance policies can help prevent out-of-pocket expenses after a total loss or theft. They can also protect you from rolling negative equity into your next auto loan or lease.
Here’s an example of how gap insurance works.
Say you buy a car for $45,000. A year later, you’re in an accident and the insurance company declares it a total loss. The ACV of the vehicle is $37,000 at the time of the accident. But you still owe $41,000 on your auto loan.
In this case, your insurer would cut the lender a check for $37,000 — minus your deductible — under your collision coverage.[2] If you have gap insurance, it’ll cover the $4,000 you owe to the lender. If you don’t have gap coverage, you must pay the difference yourself.
Important Information
Gap insurance doesn’t cover vehicle repairs, mechanical issues, or injuries from an accident. It also doesn’t typically cover your comprehensive and collision deductible, although there may be exceptions.
Find Car Insurance in Arkansas
Rates average $280 per month for full-coverage policies
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Best gap insurance companies in Arkansas
Many auto insurers in Arkansas offer gap insurance that can help protect your finances if you’re upside down on your auto loan or lease. Here’s a list of the best car insurance companies in Arkansas that provide gap insurance.
State Farm
State FarmCompare personalized, real-time quotes
| User Reviews | 3.2 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $30/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $61/mo |
State Farm tops our list of the best insurance companies in Arkansas. State Farm’s Payoff Protector product covers the difference between the ACV of your vehicle and your loan balance if you total your car or someone steals it. But it’s only available on loans State Farm Bank originates, and your loan must be in good standing to qualify for a payout under the policy.
Pros
High rates of customer satisfaction
Rideshare insurance available
Cons
Payoff Protector product is only available for loans through State Farm
May not be the cheapest choice for drivers with violations
Read more driver reviews of State Farm
Jannie - October 29, 2024
Verified
Good
The insurance is higher than other companies' policies.
Marsha - October 29, 2024
Verified
Friendly agents!
Check out their prices!
Linda - October 29, 2024
Verified
I also have my homeowners insurance with them. I had a fire in my hot water heater and a year later, someone stayed in my house while I was gone for 2 months. I came home to a floating kitchen floor. After these incidents, StateFarm cancelled my policy.
I also have my homeowners insurance with them. I had a fire in my hot water heater and a year later, someone stayed in my house while I was gone for 2 months. I came home to a floating kitchen floor. After these incidents, StateFarm cancelled my policy.
…
USAA
USAACompare personalized, real-time quotes
| User Reviews | 3.6 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.4/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $36/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $74/mo |
USAA offers its members total loss protection with their auto insurance policy. If a covered incident results in a total loss of your vehicle, this coverage pays the difference between what you owe on your auto loan and what your car is worth at the time of the incident.
Pros
Low premiums
SafePilot program rewards good driving with up to 30% discount
Cons
Only available to active-duty military, veterans, military spouses, or children of service members or veterans
No 24/7 customer phone support
Read more driver reviews of USAA
Kent - October 29, 2024
Verified
Excellent
The insurance is a bit high.
Dorothy - October 29, 2024
Verified
Significant Increase in Policy Payment
Be cautious not to have an accident, as my policy payment increased by $300 a month.
Martin - October 29, 2024
Verified
My Opinion
They have always been there when I've needed them. They're not the cheapest, but I've never been denied a claim.
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Allstate
AllstateCompare personalized, real-time quotes
| User Reviews | 3.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $66/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $135/mo |
Gap insurance from Allstate is available on new and used cars, but you must add it to your policy when you finance the purchase of your car. It’s available for all vehicles with loan terms of 96 months or less. Allstate gap insurance covers up to $1,000 of your comprehensive or collision deductible and up to $50,000 of your loan or lease balance after a total loss.
Pros
Well-established with superior ratings from AM Best
Pay-per-mile option available
Cons
Low customer satisfaction
Rates are merely average compared to other insurers
Read more driver reviews of Allstate
Howard - October 29, 2024
Verified
They Have You By The Short Hairs
I was on a three-lane highway in heavy traffic and couldn't avoid a piece of metal in my lane. I couldn't swerve or I would have hit other cars. Allstate said the accident was the driver's fault and then doubled my insurance cost.
Hugh - October 29, 2024
Verified
Actual Crash Damages vs. Damages Quoted Over the Phone
There were problems getting the correct amount paid out when I made a claim. I had to escalate the issue to the Senior Vice President to get a proper settlement when a deer hit my truck. There was a $5000 difference between what was paid out when the estimator assessed the value of damage to my truck and the actual estimate done by a local car dealership. The Senior Vice President agreed that the amount of damage done was the amount quoted by the local car dealership.
Miriam - October 29, 2024
Verified
Best Overall
Check around before choosing. Allstate has been my choice for years.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page.
The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for Arkansas drivers.
Gap insurance vs. full coverage
Full coverage includes a combination of liability, collision, and comprehensive coverages. It doesn’t include gap insurance.
Liability insurance covers your responsibility to others if you’re at fault in an accident.[3]
Comprehensive and collision coverages pay out the fair market value of the vehicle if a total loss or theft occurs. But full coverage doesn’t pay the difference if you owe more than your car is worth. Adding gap insurance provides an additional layer of protection if you have an auto loan or lease.
Who needs gap insurance in Arkansas?
Gap insurance is an optional coverage in Arkansas and isn’t necessary for every driver. But it may be a good idea if you:
Own a car that depreciates faster than average
Put little money down when you bought your vehicle
Have an extended loan term
Put more miles on your car than the average driver
These scenarios increase the likelihood that you’ll be underwater on your auto loan if your insurer declares your vehicle a total loss within your first few years of owning it. If you lease your vehicle, the leasing company will likely include gap insurance in your contract. But you don’t need to buy it to qualify for a car loan.
You don’t need gap coverage if you don’t have an auto loan or lease. If you made a large down payment when you purchased your car and don’t owe more than the vehicle is worth, you can probably skip this coverage.
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How Much Will Insurance Pay for My Totaled Car? (Full Guide)
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How to buy gap insurance in Arkansas
You can purchase gap insurance coverage whether you have a used or new car, as long as you meet the insurer’s requirements. You can purchase gap insurance at any of the following:
Car dealerships: You can buy coverage from the dealer when you purchase your vehicle.
Insurance companies: Many, but not all, traditional insurers offer gap insurance. You can usually add gap coverage to your existing auto insurance policy if you have comprehensive and collision coverages.
Lenders: Banks and credit unions may offer gap insurance as part of your loan agreement when you finance your vehicle.
Stand-alone gap providers: Some online companies offer gap coverage as a stand-alone product that you can purchase separately from your auto insurance company.
The cost of gap insurance can vary significantly, depending on where you buy it. Consider consulting an independent insurance agent or lender to compare quotes between plans for the best rate.
Cheapest recent rates in Arkansas
Drivers using Insurify have found quotes as cheap as $57/mo for liability only and $88/mo for full coverage in Arkansas.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Gap insurance in Arkansas FAQs
When you owe more than your car is worth, gap insurance can help minimize the financial impact of a total loss. But it’s important to understand how it works so there are no surprises later. Here are answers to some commonly asked questions about gap coverage.
Does Arkansas require gap insurance?
No. Gap insurance is optional in Arkansas. The only coverage Arkansas requires drivers to carry is liability. Arkansas drivers must maintain at least $25,000 per person and $50,000 per accident in bodily injury liability. The state also requires $25,000 per accident in property damage liability.[4]
What exactly does gap insurance cover?
Gap insurance covers the financial gap between your insurance payout for the value of your vehicle and what you owe on an auto loan after you total your car. It can also cover this difference if someone steals your leased or financed vehicle.
What are the cons of gap insurance?
You’ll have to pay a slightly higher car insurance rate, though the extra fee may be worth it if you total your financed or leased vehicle. The optional insurance doesn’t cover repairs for your vehicle or medical expenses following an accident, but your liability, comprehensive, and collision insurance should. An investment in more robust insurance coverage can help give you peace of mind.
Who should get gap insurance?
If you put little money down, opted for an extended loan term, drive more than average, or have a car that depreciates rapidly, you’re more likely to become upside down on your auto loan. Purchasing gap insurance may be a good option in these situations. The leasing company will likely require gap coverage if you lease your vehicle rather than buy. Arkansas law doesn’t require it, but you should read the fine print of your loan or lease contract to see if your lender requires you to purchase it.
Related articles
More cities in Arkansas
Sources
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
- Insurance Information Institute. "What is gap insurance?."
- Insurance Information Institute. "Auto Insurance Basics."
- Arkansas Insurance Department. "Consumers FAQ."
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Jennifer Brozic
Jennifer Brozic is a content marketing writer, specializing in the financial services and insurance industries. She's committed to helping her clients create content that inspires people to take action. Her areas of expertise include insurance, financial planning & budgeting, building credit, loans, credit cards and more.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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