Gap Insurance in Arkansas (2024)

Gap insurance is an optional coverage that can provide added financial protection if your car is totaled or stolen.

Jennifer Brozic
Written byJennifer Brozic
Jennifer Brozic
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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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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Updated March 1, 2024 at 11:00 AM PST

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Gap insurance — also known as guaranteed asset protection — can help protect your finances if you have an auto loan or lease and your car is totaled or stolen. After your vehicle is declared a total loss, the insurance company typically pays out its current market value — not the amount you owe. 

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.

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.

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What is gap insurance and how does it work?

Everyone knows that 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. However, 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. However, 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 will 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.

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. However, 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. However, 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.

How Much Will Insurance Pay for My Totaled Car? (Full Guide)

How Much Will Insurance Pay for My Totaled Car? (Full Guide)

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.

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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

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
843
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.
$28/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.
$56/mo

State Farm tops our list of the best insurance companies in Arkansas, with an IQ Score of 4.5. It is also known for offering low monthly premiums. State Farm’s Payoff Protector product covers the difference between the ACV of your vehicle and your loan balance if your car is totaled or stolen. 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

I am happy with their coverage. I just bought a new car, and my insurance quadrupled. YIKES.

Stacy - December 4, 2023
Verified

Friendly service.

John - December 4, 2023
Verified

Got insurance established fast.

Robert - December 3, 2023
Verified
Read our State Farm review

USAA

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
879
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.
$34/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.
$68/mo

With the second highest IQ Score in Arkansas, 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

They have stopped thinking about how today's financial strain is impacting their customers.

Darcy - November 26, 2023
Verified

Not satisfied with price hike even after lowering coverage.

Linda - November 3, 2023
Verified

Wonderful service, pricing, and care.

Robert - October 24, 2023
Verified
Read our USAA review

Auto-Owners

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
821
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.
$48/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.
$96/mo

Auto-Owners offers traditional loan/lease gap insurance as well as rental auto gap. Rental auto gap insurance covers the amount you owe under your rental agreement if the car you’re renting is totaled.

Pros
  • High customer satisfaction

  • Multiple discounts

Cons
  • Not available in every state

I was pleased with the agent and for years the price, but now they have gotten too expensive for a person on a fixed income.

Mary - August 13, 2023
Verified

I was dropped because of two minor at-fault accidents in two plus years.

Zachary - January 8, 2023
Verified

You can work directly with an agent.

Guy - May 17, 2022
Verified
Read our Auto-Owners review

Allstate

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.2
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
816
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.
$63/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.
$125/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 A.M. Best

  • Pay-per-mile option available

Cons
  • Low customer satisfaction

  • Rates are merely average compared to other insurers

Our agent was always available for questions and concerns.

Lyn - December 4, 2023
Verified

Prices keep going up.

Gilberto - December 2, 2023
Verified

They are overcharging me for basic insurance.

Brian - November 29, 2023
Verified
Read our Allstate review

Shelter

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.5
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
Not rated
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A

Shelter offers gap insurance as an add-on to your existing auto insurance policy. If you’re in a crash that totals your car, it helps pay the difference between what you owe on your auto loan and what your collision coverage pays out.

Pros
  • Ample discounts available

  • New car replacement and roadside assistance included

Cons
  • Only available in 15 states

  • No option for getting getting a quote or buying a policy online

Many years with them.

Terri - May 29, 2023
Verified

Could never get ahold of an agent

Lucy - December 29, 2022
Verified

Great service and great coverage

Frank - January 19, 2022
Verified
Read our Shelter Insurance review

Nationwide

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
800
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.
$64/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.
$126/mo

Nationwide rounds out our list of the best gap insurance companies in Arkansas. The company’s gap coverage is available as an add-on to your existing policy for vehicles that are 6 years old or newer. However, it’s only available in select states.

Pros
  • Numerous discount and savings opportunities

  • SmartRide (for safe drivers) and SmartMiles (for low-mileage drivers)

Cons
  • Not available in every state

  • Some discounts and programs not available in all states

I am happy with Nationwide.

James - November 5, 2023
Verified

They were there for me when I needed them.

shane - October 30, 2023
Verified

After 50+ years with NW, I don’t feel there is personalized contact.

Paula - October 4, 2023
Verified
Read our Nationwide review

How Insurify rates car insurance companies

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 in Arkansas FAQs

When you owe more than your car is worth, gap insurance can help minimize the financial impact of a total loss. However, 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 is the purpose of gap insurance?

    After a total loss, your insurance company will only pay out the actual cash value of your vehicle at the time of the incident. That may not be enough to pay off your auto loan or buy a new car. Gap insurance provides financial relief by paying off your loan or lease balance.

  • 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.

  • Are there any specific conditions that must be met for gap insurance to apply?

    Gap coverage kicks in when your insurance company declares your vehicle a total loss and your loan or lease balance is more than the car is worth. You typically need to have comprehensive and collision coverages to purchase gap insurance. Some insurers may have additional requirements based on vehicle age and length of loan term.

Sources

  1. Insurance Information Institute. "Auto insurance basics—understanding your coverage." Accessed November 2, 2023
  2. Insurance Information Institute. "What is gap insurance?." Accessed November 2, 2023
  3. Insurance Information Institute. "Auto Insurance Basics." Accessed November 2, 2023
  4. Arkansas Insurance Department. "Consumers FAQ." Accessed November 2, 2023
Jennifer Brozic
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. 

Chris Schafer
Edited byChris SchaferSenior Editor
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

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