Arkansas gap insurance: Everything you need to know

How much is gap insurance in Arkansas?

On average, gap insurance in Arkansas costs $2,228 a year, but rates vary by company. The cost of your vehicle also affects gap rates. Expensive or luxurious cars tend to depreciate faster than standard vehicles, meaning gap coverage would have to pay more, which increases coverage rates.

Cheapest gap insurance companies in Arkansas

The cheapest gap insurance in Arkansas is offered by Travelers, with an average yearly cost of $1,462. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.

Take a look at the table below to see the cheapest Arkansas insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,462	$40
Auto-Owners	$1,965	$70
Auto Club Enterprises (AAA)	$2,186	$85
Progressive	$2,464	$90
Farmers	$3,062	$144

Read our methodology

Average gap insurance cost in Arkansas by city

West Memphis has the highest gap insurance rates at an average of $2,474 a year, while Fayetteville offers the lowest at an average of $2,041 per year. Where you live in Arkansas affects your insurance rates. Cities with higher crime and theft have higher insurance costs because your vehicle is at a greater risk of being damaged or stolen.

The table below lists the average gap insurance rates by city in Arkansas.

City	Auto insurance rates with gap premium	Gap premium
Fayetteville	$2,041	$77
Little Rock	$2,114	$75
Elkins	$2,125	$83
Newport	$2,140	$83
Jacksonville	$2,157	$77
Sherwood	$2,158	$79
Hot Springs	$2,266	$89
Hope	$2,363	$98
El Dorado	$2,441	$100
West Memphis	$2,474	$95

Read our methodology

How much is gap insurance in Arkansas by age group?

Car insurance rates for younger drivers are more expensive because they are more likely to engage in risky driving and lack the experience needed to avoid accidents. Rates go down as the driver gets older. For example, at 18 years old the average rate is $9,012 a year, and at 25 the average annual rate is $2,929.

The table below shows the average gap insurance rates in Arkansas by age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$9,012	$332
Young adult	$2,929	$115
Adult	$2,228	$86
Senior	$1,964	$72

Read our methodology

How does gap insurance work in Arkansas?

Right after you buy or lease a new car, it depreciates, causing you to owe more than the car is worth. If your car gets totaled, your insurance company pays only the car's actual cash value. This payout may leave you still owing money on the loan. That's where gap insurance helps. If someone totals or steals your car, gap insurance pays the difference between your car's value and the amount you still owe on the loan.

"Gap is designed for people that take long-term loans and/or roll taxes, service plans, or warranties into their loan," said Zack Pope, agency manager at David Pope Insurance in Missouri. "Most gap coverages only go a certain percent over market value to pay off a loan for a totaled vehicle (typically 25%). It costs significantly less money to get gap through your insurance than to purchase it from the dealership."

For example, imagine you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If someone steals your car, your insurance company reimburses you $35,000, minus your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.. Gap insurance pays the remaining $5,000 you still owe on the loan. Without gap insurance, you must cover this difference out of pocket.

Once your loan balance is lower than your car's value, you can drop gap coverage. You can cancel gap insurance anytime, but you may not be able to add it whenever you want. Most insurers require you to add the coverage soon after you buy a car.

Many lenders also require gap insurance when you take out a loan. You can buy gap coverage from your lender or car dealership, but adding it to your existing auto policy usually costs less.

Where to buy gap insurance in Arkansas

Many insurance companies, including major providers, offer gap insurance in Arkansas. You can add this coverage to your existing car insurance policy or buy a standalone policy.

The best way to get gap coverage is to add it to your auto insurance policy. Car dealers and lenders also offer gap insurance, but their policies are mostly expensive, making them less budget-friendly.

Methodology

We gathered car insurance rates with and without gap insurance through our data partner, Quadrant Information Services.

Averages are annual and based on our full coverage data set. This data set is based on:

Bodily injury liability of $100,000 per person and $300,000 per incident
Property damage liability of $100,000 per incident
Comprehensive and collision deductibles of $500
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

To show the cost of gap insurance, we have compared rates with gap insurance added to the averages without gap insurance, and the difference is shown as the annual cost of gap insurance.

Rates are based on an analysis of over 5 million data points in all 50 states and Washington, D.C. from 138 companies.

Arkansas gap insurance: FAQs

Is gap insurance required in Arkansas?

Gap insurance isn't required by law in Arkansas, but your lender may require you to have the coverage.

Who should buy gap insurance in Arkansas?

You may need gap insurance if you have a car loan or lease in Arkansas. Drivers who make a small down payment typically owe more than the vehicle is worth since cars depreciate faster than the loan is paid down, making gap insurance a good idea.

You don't need gap insurance if you own your car or make a large down payment.

What is standalone gap insurance in Arkansas?

Standalone gap insurance is a separate policy, not a part of your car insurance. You can buy gap insurance from your lender or a private company as an independent policy.

Does gap insurance cover leased cars in Arkansas?

Arkansas gap insurance covers leased cars where the driver owes more than the vehicle's current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.