Arkansas car insurance laws
Arkansas drivers must have the state's minimum car insurance in order to drive legally. Minimum coverage in Arkansas includes bodily injury and property damage liability coverage. The average minimum coverage policy in the state costs $437 per year, which is less than the national average, but most insurance professionals recommend carrying full coverage car insurance if you can afford it for additional financial protection. At $1,806 per year, an Arkansas full coverage car insurance policy costs more than the national average.
Car insurance laws in Arkansas
In order to legally operate a vehicle in Arkansas, every driver must have a minimum amount of car insurance. Arkansas's minimum car insurance is 25/50/25, which includes personal liability insurance. A minimum coverage insurance policy includes the following coverage limits:
- $25,000 in bodily injury liability coverage per person
- $50,000 in bodily injury liability coverage per accident
- $25,000 in property damage liability coverage per accident
Car insurance companies in Arkansas must also provide uninsured and underinsured motorist coverage, which can be declined by the policyholder. Because nearly 20% of Arkansas drivers are uninsured, uninsured and underinsured motorist insurance may be a good idea.
If you are at fault in an accident, bodily injury liability coverage will cover the other driver's medical expenses, while property damage liability coverage will cover the other driver's car repairs if there is damage. It is important to note that in Arkansas, a minimum coverage policy does not provide any protection for your own vehicle.
Arkansas also requires your insurance company to offer you personal injury protection insurance (PIP) and requires you to reject the offer in writing if you do not want to carry it.
Liability insurance in Arkansas
Arkansas car insurance laws require a minimum of 25/50/25 in liability insurance. Is this, however, enough coverage to protect you in the event of a serious car accident? Many insurance professionals would say no.
If you cause an accident that results in damages that exceed your liability limits, you will be required to pay the excess out of pocket. Car accidents can be expensive, and even minor collisions can quickly add up.
Furthermore, liability coverage pays for the other car's damages and costs in an at-fault accident, not your own. If your own vehicle is damaged in an at-fault accident and you only have minimum coverage insurance, you will have to pay for the repairs out of pocket. To have coverage for your own vehicle, you must have a full coverage policy that includes collision and comprehensive insurance. Although your premium will be higher, you may be better protected financially in the event of a covered incident such as an accident or vandalism.
Is Arkansas a no-fault state?
Arkansas does not have a no-fault system. A driver's insurance company will cover their medical expenses and lost wages after an accident in a no-fault state, regardless of who was at fault. In a tort state, such as Arkansas, the at-fault driver's insurance pays for the other driver's hospital bills. As a result, drivers in no-fault states must carry personal injury protection (PIP) coverage.
Penalties for driving without insurance in Arkansas
Driving without car insurance is against the law in Arkansas. If you are pulled over by law enforcement and are found to be driving without insurance, you will be fined, your license plates may be removed, and your registration may be suspended. If you are uninsured and cause an accident, your vehicle may be impounded. These are the penalties for the first offense. If you are caught driving without insurance more than once, you may face increased fines and jail time. To regain your driving privileges, you must typically obtain SR-22 insurance and pay a license reinstatement fee.
Arkansas passed a new law in 2020 that allows officers to see real-time insurance data when they run a license plate. If the database shows that the driver's policy has expired, they will be fined $100. If the driver fails to provide updated proof of insurance within a certain time frame, their registration will be suspended indefinitely until they purchase coverage and pay the fine.
Other Arkansas car insurance coverage options
Every driver in Arkansas is required by law to have at least a minimum coverage insurance policy. Many drivers, however, choose to carry additional coverage for added financial security. These may include full coverage components such as collision and comprehensive coverage, as well as policy endorsements. Not all carriers provide these types of endorsements, but here are a few examples:
- Gap insurance: If you lease or finance your vehicle, gap insurance may be useful. If your car is totaled, gap insurance pays the difference between the car's diminished value and the outstanding loan balance.
- Roadside assistance: Roadside assistance pays for minor vehicle repairs and services such as towing (up to a certain distance), fuel delivery, battery replacement, and flat tyre changes.
- Accident forgiveness: With accident forgiveness, your car insurance premium will not increase after your first at-fault accident. Keep in mind that most car insurance companies have limits on the types of damages that qualify for accident forgiveness, and some drivers may be ineligible.
- New car replacement: If your existing vehicle is totaled in a covered loss, new car replacement coverage may reimburse you for the cost of a similar year, make, and model vehicle.