Arkansas Auto Insurance Minimum Requirements
Arkansas Auto Insurance Guide Get affordable Arkansas auto insurance quote rates for free Arkansas Auto Insurance Minimum Requirements 2022.
Arkansas Minimum Insurance Requirements
Arkansas boasts thousands of miles of roads that connect Fayetteville to Jonesboro, Fort Smith to Little Rock, Hope to Hot Springs, and so on. They’ll take you to the Mississippi Delta area and the Ozark Mountains. Over 2 million licensed drivers use them, clocking 11,000 miles apiece annually on average.
They are involved in thousands of traffic incidents along the road, many of which cause severe injuries or fatalities. Anywhere you reside and drive in the Land of Opportunity, having enough auto insurance is a must and a sensible precaution. This is your guide to the fundamental regulations and requirements for auto insurance in Arkansas.
You are required by Arkansas state law to maintain a certain level of automobile insurance. If you don’t, you risk receiving harsh punishments, such as cash fines and jail time. Due to the tort system in Arkansas, if you are determined to be at fault in an automobile accident, you may be held liable for economic damages (missed wages and earning ability), real damages (expenses related to property damage and medical expenditures),
as well as emotional and physical pain and suffering. The three types of personal injury insurance that you can obtain in Arkansas are medical payments, lost wages, and death benefits. Any or all of these coverages may be purchased. You must formally refuse the offer to obtain personal injury insurance if you decide against doing so.
The bare minimum car insurance requirement for Arkansas drivers is:
- $25,000 bodily injury per person per accident
- $50,000 bodily injury for all persons per accident
- $25,000 property damage liability
You are not required to have supplemental insurance in Arkansas, such as collision and comprehensive, personal liability, or uninsured/underinsured motorist coverage. When you get liability insurance, this kind of coverage will be suggested to you, and it will be a part of your policy unless you expressly reject it in writing.
However, if you have any real estate or other vital assets, going above and beyond the bare minimum will help you safeguard your finances.
Failure to Maintain Arkansas Auto Insurance: Penalties
In Arkansas, it is mandatory to keep sufficient insurance, evidence of insurance in your automobile, and keep your registration plates up to date if you own a car. For the first offense, fines for driving without insurance vary from $50 to $250, for the second offense, $250 to $500, and for the third and subsequent crimes, fines range from $500 to $1,000, plus there is a chance of up to a year in jail.
Arkansas conducts random checks and maintains an electronic database of insurance coverage. Your registration may be suspended and your license plates may be seized. A $20 reinstatement fee will be assessed if your license plates are taken away during a traffic stop. If you are discovered using an electronic check, $50 will be charged for reinstatement.
Arkansas Car Insurance Premiums
Vehicle insurance premiums are regulated by the Arkansas Department of Finance and Administration Insurance Department. Insurance companies are allowed to charge premiums and award discounts based on a number of factors that can include:
- The type of car you are insuring
- Prior auto insurance coverage
- How much you drive
- Your driving record
- Your age
- Your gender
- Your marital status
- Your geographic location
- How long you’ve been driving
- Whether or not you use your car for business
Arkansas also allows insurers to consider your credit history to determine your premium.
How To Get The Cheapest Auto Insurance Policy In Arkansas
The following methods may help you lower your premium costs:
A strong driving record, anti-theft devices, numerous automobiles on one policy, bundling your auto insurance with your homeowners or renters insurance, automatic or online payments, and operating a hybrid or electric vehicle are all possible savings to look into.
On this website, you can compare prices from a number of suppliers.
Cut out the extra coverage
See if you are eligible for any state-sponsored low-cost auto insurance programs.
New Driving Laws in Arkansas
Laws governing driving and auto insurance are subject to regular modification. It is your duty to remain informed of Arkansas’s legal obligations. The following laws were recently passed in Arkansas and could have an impact on your choice of the insurance policy.
Act 908 has allowed police officers to issue electronic tickets since 2012. You must receive a printed copy from them.
Since August 2013, drivers in Arkansas must move to the lane or area that is farthest from vehicles that belong to the Arkansas State Highway and Transportation Department or its contractors. These include tow trucks, utility vehicles, and any permitted vehicle with flashing, rotating, or rotating blue, red, amber, white, or green lights. The punishment can include a $500 fine, up to six months of license suspension, community service, and/or time in jail.
Drivers between the ages of 18 and 20 are not allowed to use handheld phones, and all new drivers are not allowed to use cell phones at all. Texting while driving is also prohibited.
Arkansas Car Insurance Laws
Drivers in Arkansas are required to carry a certain amount of car insurance in order to legally get behind the wheel. Proof of insurance must also be carried at all times while driving. This proof of coverage can be physical or electronic but must be shown at the request of law enforcement officials.
Find below details on the car insurance coverage required by the state of Arkansas, as well as a run-down of what this insurance covers.
Auto insurance requirements in Arkansas
Liability insurance coverage in Arkansas
Arkansas law requires that all drivers carry liability coverage. This coverage pays out if you injure another driver or their passengers. It also covers their lost wages as well as damage to the other driver’s vehicle. The amount of liability coverage that you carry can typically be increased from the state-required minimums by most insurance carriers.
It’s crucial to remember your liability coverage will never pay for your injuries or damages to your vehicle or other property. For that, you should look into some of the optional insurance coverages available in Arkansas.
What are state-mandated car insurance limits in Arkansas?
In insurance, the term limit refers to the total amount that an insurer will pay out in a covered claim. Arkansas coverage limits are determined by the state and are normally shown with three numbers — 25/50/25 — known as split limits. The numbers represent the individual categories: bodily injury per person, bodily injury per accident, and property damage. See the breakdown of each of these types of liability and what they cover below.
Bodily injury coverage per person is the maximum dollar amount your insurer will pay to cover the injuries of a single person you injure in a car accident.
Bodily injury coverage per accident refers to the total amount your insurer will pay for everyone that you injure in a car accident.
Property damage per accident is how much your insurer will cover for another person’s property damaged in an accident caused by you.
These numbers reflect the minimum limits required in Arkansas, though higher coverage amounts are available with most companies.
Do Arkansas’ required insurance minimums provide enough coverage?
Arkansas’s minimum car insurance limits are more robust than in some states. Still, if you want to fully protect yourself and your assets, it’s always a good idea to increase your liability limits. If you were to seriously injure someone in a car accident, the $25,000 limit could be exhausted quite quickly.
This is especially true if you injure multiple people. Also, the $25,000 in property damage doesn’t quite cover the average cost of a new vehicle, leaving you at risk.
Remember that the above circumstances are only what cover other parties for which you cause injury or property damage. If you total your own vehicle in an accident, liability insurance pays nothing for your own losses. For this, you would need to add extra coverage.
Arkansas’s penalties for driving without proof of insurance
Car insurance is required by law in Arkansas. If you are found to be driving without insurance, you can expect the following penalties to apply:
Optional car insurance coverage in Arkansas
Arkansas only requires liability coverage to be a legal driver. However, there are a number of different types of coverage you can add for further protection. Here is a list of some of the more common coverage types.
Comprehensive: This is a type of physical damage coverage that protects your vehicle from non-collision perils such as weather damage, theft, and hitting an animal.
Collision: If you collide with another car or even a stationary object, this coverage will step in to help with damages to your vehicle.
Loan/Lease Payoff: This coverage is interchangeable with gap coverage and helps cover the difference between what you owe on a car and what the car is actually worth should it be totaled. Your vehicle’s depreciation is factored in to determine the difference between your vehicle’s actual cash value and what you still owe on the loan.
Personal Injury Protection (PIP): This coverage steps in to cover you or members of your household regardless of who is at fault in an accident. It is comprised of three individual parts: medical payments, lost wages, and death benefits.
Rental Car Reimbursement: Limits will vary by company, but this coverage goes toward the costs of a rental car if your own vehicle is unable to be driven.
Roadside Assistance: Companies that offer roadside coverage differ in what they offer, but common perils covered under this include flat tires, dead batteries, and in some cases, car lock-outs.
Uninsured/Underinsured Motorist Bodily Injury: If you are involved in an accident with a driver who doesn’t have insurance — or just carries the bare minimums — these coverages can step in to help cover your injuries if the at-fault party cannot pay.
Uninsured Motorist Property Damage: This form of uninsured coverage works similarly to bodily injury coverage, though it protects your vehicle or other property damaged by an uninsured driver.
Why adhering to Arkansas’ car insurance requirements is important
On top of being required by law, keeping the appropriate amount of car insurance coverage protects you and your assets in the event of an at-fault car accident. This can save you a great deal of money in the long run.
Adding coverage to protect your own vehicle or passengers can also come in handy after an accident. If you are concerned about the cost of insurance coverage in Arkansas, don’t fear.
The Zebra can help you compare quotes from a number of top insurance companies to help you find the policy that’s right for your individual needs and at a price you can afford.