Best Cheap Gap Insurance Companies in Arkansas: Quotes, Discounts (2023)

Gap Insurance in Arkansas

It’s common for Arkansas drivers to take out an auto loan or enter a lease program when buying a new car. However, this can leave you financially vulnerable if the car is totaled in an accident. Gap insurance can help provide financial protection and cover any outstanding loans or leases. If you need gap insurance, Insurify provides a platform where you can quickly compare quotes and select coverage within a matter of minutes.

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Best Companies for Gap Insurance in Arkansas

Arkansas has several insurance providers that offer gap insurance to drivers who are leasing a new vehicle. Below is a list of some of the insurance companies you should consider getting a quote from.

See More: Cheap Car Insurance in Arkansas

What is gap insurance?

Gap insurance helps drivers cover the gap left over between the actual value of a motor vehicle and the remaining balance of its loan or lease if it is totaled in an accident or stolen. If a driver doesn’t have this coverage, they could be held responsible for any outstanding balances after a total loss of their vehicle.

The state of Arkansas doesn’t legally require a driver to have gap insurance on top of their standard auto policy. However, the company you use for your auto loan or lease will usually require that you obtain this coverage.

Who should buy gap insurance in Arkansas?

Even though gap insurance is typically only required by lenders when you take out an auto loan or participate in a leasing program, there are still instances where it might make sense to purchase the coverage.

If you fall into one of the following categories, you should consider obtaining guaranteed asset protection:

• You leased a vehicle from a car dealership.

• You put down a down payment of less than 20 percent when purchasing your vehicle.

• You have an auto loan with a term longer than five years.

• You purchased a car or truck that will depreciate faster than normal.

Arkansas Gap Insurance Laws

Unlike a standard car insurance policy, the state of Arkansas doesn’t require drivers to have gap insurance. Instead, the requirement to carry the coverage usually comes from lenders providing the financing needed to purchase or lease a vehicle. You will want to review the insurance requirements of your lender before agreeing to a loan or lease.

How much gap insurance do I need in Arkansas?

The amount of gap insurance you will need in Arkansas will vary based on many factors, including your policy limits and deductible. Depending on which insurance company or lender you decide to purchase your gap car insurance through, you may notice a difference in how much is covered.

Some plans will only cover up to 25 percent of your car’s value, while other coverage options will pay off the entire balance of the loan or lease that you owe. Regardless of which gap insurance product you ultimately decide on, you will want to make sure you take the time to compare and review policies carefully before purchasing.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Arkansas

In Arkansas, gap insurance helps drivers cover the gap left over between a vehicle’s current value and the remaining balance on an outstanding loan or lease if the car is totaled in an accident or stolen. This added protection is usually a requirement by lenders if you plan on using an auto loan to pay for your vehicle.

One perk that is unique to gap car insurance coverage is that there is a potential for reimbursement. Unlike other auto insurance products, such as collision coverage, comprehensive coverage, or liability coverage, you may get money back if you pay your gap coverage in advance and pay off your vehicle early.

How Much Gap Insurance Costs in Arkansas

Many factors can affect the amount you pay for gap insurance in Arkansas, including location, your vehicle’s age, and your car’s value. On average, most drivers will pay about $260 a month for a car insurance policy with a gap insurance add-on.

See More: Average Cost of Car Insurance in Arkansas

How to Buy Gap Insurance in Arkansas

For drivers who need to buy gap insurance coverage, there are several ways to obtain a policy. For example, most car dealerships, lenders, and auto insurance companies sell guaranteed asset protection plans. However, with so many options, it can be difficult to tell if you are receiving a good deal without reviewing multiple quotes.

Insurify helps drivers quickly compare policies by providing one central location where a list of qualifying insurance quotes can be reviewed.