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Arkansas Car Insurance Requirements

Arkansas Minimum Car Insurance Requirements

The state of Arkansas requires drivers to carry a mandatory amount of liability insurance in order to legally drive. On top of this, they must also carry proof of insurance and be ready to present it if asked by law enforcement. The mandatory liability insurance minimums for the state of Arkansas are:

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $25,000 property damage per accident

Keep in mind that if you are leasing your car or have it on a loan, your lender or leasing company may require you to carry full coverage car insurance.

Arkansas Liability Insurance Coverage

As previously mentioned, Arkansas requires all drivers to carry liability insurance. Liability insurance covers you if you injury someone and/or damage property their property in an accident that was your fault. It is important to note that liability coverage will never pay for damages or injuries that you and your car sustain. It is only meant for the other driver if you are at fault. If you want to protect yourself, you will need to expand your insurance policy. You should also consider increasing liability insurance coverage as the state minimum is rarely ever enough.

Arkansas Car Insurance Limits

When discussing car insurance, the word limits refers to the maximum amount that your insurance company will payout after an accident. The state of Arkansas has limits of 25/50/25. Each number represents a different category under liability insurance. A breakdown of each can be found below.

  • Bodily injury coverage per person refers to the maximum amount your insurance company will pay to cover the injuries the other drive sustains in an accident that you caused.
  • Bodily injury coverage per accident is the total amount your insurer pays for all parties that are injured in an accident you cause.
  • Property damage per accident refers to the maximum amount of money your insurance company pays to cover another person’s property that you have damaged in an accident.

The numbers expressed here are just the state-mandated minimums and can easily be increased with any insurance provider. You are highly encouraged to do this.

Is Arkansas’s Mandatory Insurance Minimums Enough Coverage?

The state of Arkansas has a mandatory liability insurance minimum that is on the lower end. For this reason, it most likely will not be sufficient after an accident. Property damage alone can greatly exceed that $25,000 limit, and medical expenses rack up very easily. For anything not covered, it will generally come back to you. You do not want to be stuck owing thousands of dollars after an accident.

Driving Without Proof of Insurance in Arkansas

Since car insurance is required by law in Arkansas, failure to comply can result in some pretty severe penalties, depending on the circumstances. Outlined below is what you could be facing if you are caught driving without insurance:

  • Fines anywhere from $50 to $250 with it only increasing after multiple offenses
  • License plate removal
  • Vehicle registration suspension
  • SR22 requirement
  • $20 reinstatement fee
  • Towing or impoundment costs

Other Types of Car Insurance in Arkansas

While Arkansas only required drivers to carry liability insurance, there are a number of add-ons available for your car insurance policy to expand coverage. Listed below are some common other types of car insurance.

  • Collision: This coverage helps pay for damage your car sustains in an accident, no matter who is at fault.
  • Comprehensive: If your car gets damaged while not in use, comprehensive coverage can help pay for repairs. This includes protection from perils such as theft and weather damage. When comprehensive is paired with collision, that is known as full coverage car insurance.
  • Personal Injury Protection (PIP): This insurance covers medical expenses for you and your passenger(s) regardless of who was at fault for the accident. It can also help cover lost wages and death benefits.
  • Loan/Lease Payoff: Also known as gap coverage, loan/lease payoff helps cover the difference in cost if the car you are loaning or have leased is totaled. This only works if the car has not been paid off.
  • Rental Car Reimbursement: If your car needs to be in the shop for an extended period of time, rental car reimbursement insurance will help pay a rental car while you wait for your car to be fixed.
  • Uninsured/Underinsured Motorist Coverage: Despite car insurance being required by the state of Arkansas, many people still choose to drive without any coverage, and it can be financially draining if you end up in an accident with one. For that reason, many drivers choose to ass uninsured/underinsured motorist coverage to help pay for damages after an accident with someone who has little or no insurance.
  • Roadside Assistance: What is offered with roadside assistance can vary based on the insurance company you choose. In general, roadside assistance will help you when you are stranded on the road with a dead battery or flat tire.

Car Insurance is Important For Any Arkansas Driver

It should not take a law to make you carry car insurance. Insurance helps to protect you and your assets along with other drivers on the road. Accidents happen all the time, and you want to be prepared for them. While you cannot predict them, you can try to be ready for it, and insurance is the best way to go about that. Also, try to purchase more than the required minimum liability insurance. You want to have your assets and passenger(s) protected. Liability insurance will not extend to you.

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