Is car insurance required in Arkansas?

Yes, the state of <a href="https://insurance.arkansas.gov/pages/consumer-services/consumer-services/consumers-faq/" target="_blank">Arkansas requires that drivers have car insurance</a> before they can drive. Drivers must have a policy with a minimum of 25/50/25 in liability coverage. Without this, they are liable to receive fines, penalties or even jail time.

Do you need car insurance to register a car in Arkansas?

Yes, <a href="https://www.dfa.arkansas.gov/motor-vehicle/vehicle-tag-renewal/" target="_blank">car insurance is required</a> before a driver can register their car in Arkansas. As it is also legally required by the state, failure to acquire a policy that follows the state minimums can lead to consequences for the driver.

What is “basic” car insurance in Arkansas?

In Arkansas, car insurance laws mandate that drivers have a minimum of 25/50/25 in liability coverage. This means that a policy should have at least $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $25,000 in property damage coverage.

Does insurance follow the car or driver in Arkansas?

A car insurance policy in Arkansas typically follows the car, not the driver. This means that if a driver gets into an accident in an insured car that isn’t their own, the accident will still be covered depending on the vehicle’s coverage.

Can you get car insurance without a license in Arkansas?

As you can register a vehicle in Arkansas without a license, you can also purchase car insurance without it as well. Note, however, that insurers are likely to raise your premiums if you don’t have a license. This is because your license is used to look up your driving history. Without it, you’re deemed a high-risk driver.

Is Arkansas a no-fault state and what does this mean?

Arkansas is not a no-fault state. A no-fault state is where drivers are required to file a claim with their own insurance regardless of who is at fault. Instead, the state mandates that someone is responsible when an accident happens.

Is PIP coverage required in the state?

No, personal injury protection insurance is not required in Arkansas. Otherwise known as PIP insurance, this can help drivers pay for their own injuries or that of their passengers in the event of an accident.

Does Arkansas require uninsured motorist insurance?

Uninsured motorist insurance is not required in Arkansas. However, MoneyGeek does recommend that drivers add this to their policies. This is because uninsured motorist insurance helps cover a driver in case they get into an accident with an uninsured third party that is at fault.

Does Arkansas allow for diminished value compensation after an accident?

Arkansas <a href="https://www.collisionclaims.com/arkansas-diminished-value/#:~:text=Arkansas%20is%20a%20diminished%20value,motorist%20coverage%20for%20diminished%20value." target="_blank">allows for diminished value compensation</a> after an accident. This means that drivers can file a third-party claim to the at-fault party’s insurer to recover the difference between a car’s value before and after an accident. This is because a car’s value decreases after an accident, regardless of the parts used or services received.

How do car insurance requirements change after a DUI in Arkansas?

In Arkansas, requirements for car insurance do not change after a DUI . However, this can seriously affect the rates of insurance, as insurers will view you as high risk and may even reject your application for insurance. This may lead to you needing to file for an SR-22, which can exponentially increase your premiums.

What is a CARCO inspection and is it required?

CARCO inspections are pre-insurance vehicle photo inspections that protect both the policyholder and the insurance company. This is meant to document the condition of the car before a driver gets insurance and gets details on the mileage, physical condition and existing options and accessories. Arkansas does not require CARCO inspections.

Arkansas Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

For drivers in Arkansas, car insurance laws require having minimum liability coverage of 25/50/25. A policy following the state minimums covers $25,000 in bodily injury per person with up to $50,000 per accident and $25,000 in property damage. Basic policies that meet the minimum coverage mandates will only protect third parties in an accident, but drivers have the option to increase coverage limits and get additional protection. Note that drivers who do not meet the required minimums run the risk of receiving fines, penalties and even jail time.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Arkansas
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Arkansas
FAQs

What Is the Minimum Car Insurance Requirement in Arkansas?

How much car insurance you need in Arkansas depends on your needs, but the state dictates that you must have a minimum coverage of 25/50/25 in liability limits. This includes:

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

While these are the minimums, drivers can adjust their coverage limits as needed to secure more protection at an additional cost.

What Does This Minimum Coverage Mean?

In Arkansas and most states, liability coverage is a requirement for drivers, but the minimum coverage required can vary based on your state. Arkansas drivers must have 25/50/25 in liability limits along with personal injury protection.

This means that a driver’s auto insurance policy must have at least $25,000 in bodily injury limits per person with a $50,000 bodily injury limit per accident. This covers the medical cost of injuries from any third party involved in an accident. Policies must also include $25,000 in property damage, which covers a third party’s property, such as their vehicle or the items inside it.

How Much Does the Minimum Car Insurance Cost in Arkansas?

The cost of car insurance in Arkansas and any state depends on a range of factors, such as the driver’s personal information and their chosen insurance company. Personal details such as a driver’s age, postal code, driving history, credit score and more will be asked for.

USAA is the most affordable insurer in Arkansas, with premiums at an annual average of $304. However, their policies are only available for military members and their families. The next cheapest and most widely available insurer in Arkansas is GEICO, charging an average of $373 per year for auto insurance.

These prices are only estimates based on rates for an average Arkansas driver and should not be used to compare insurance prices.

The rates for car insurance in Arkansas were collected based on the state’s minimum coverage of 25/50/25. A sample profile was used following a 40-year-old Arkansas resident driving a 2010 Toyota Camry with a good driving record and credit score.

MoneyGeek also ranked the best car insurance companies in Arkansas for those who want strong service and affordable rates.

What Is the Minimum Car Insurance Requirement in Arkansas While Leasing a Car?

If you’re leasing a car in Arkansas, car lease insurance requirements are often different with the leasing company in comparison to the state. Most companies require that drivers have full coverage car insurance with 100/300/50 in liability limits, but this can vary based on the company. Contact your car leasing company to find out their minimum limits.

How much car insurance coverage you need will depend on your personal situation, but MoneyGeek generally recommends that Arkansas drivers have a full coverage policy with at least 50/100/50 in liability limits. Full coverage policies come with comprehensive and collision coverage, which can protect the driver’s vehicle in case damages are caused or incurred. Given how the state of Arkansas reports that 19.3% of drivers are uninsured, protecting yourself is important to avoid financial repercussions in case of an accident where you aren’t at fault.

Penalties for Driving Without Car Insurance in Arkansas

In Arkansas, car insurance laws require that drivers have auto insurance before they can drive. Without it, drivers can face a number of consequences. As Arkansas has an instant verification program to detect uninsured vehicles in real-time, having and carrying proof of insurance becomes all the more important. This can be done through an insurance ID card or a printed policy declaration page.

Driving in Arkansas without auto insurance can lead to penalties and fines, but it can also increase the cost of car insurance. In particular, drivers without auto insurance can lead to the following repercussions:

License and vehicle registration suspension with a reinstatement fee of $20
License and vehicle registration revocation after repeat offenses
Driving privilege suspension
Jail time
Fines at a minimum of $500
License plate removal
Requirement of proof of insurance or SR-22

To get reinstated after a first offense, drivers may be required to show proof of insurance or file an SR-22 along with paying a $150 reinstatement fee.

Frequently Asked Questions About Car Insurance in Arkansas

Before purchasing car insurance in Arkansas, you may have some questions. Here are answers to some of the most frequently asked questions about Arkansas car insurance.

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

Arkansas Democrat Gazette. "2 State Laws Target Uninsured Vehicles." Accessed July 11, 2021.
Arkansas Department of Finance and Administration. "Vehicle Tag Renewal." Accessed July 11, 2021.
Arkansas Insurance Department. "Consumers FAQ." Accessed July 8, 2021.
CARCO. "CARCO FAQs." Accessed July 9, 2021.
CollisionClaims.com. "Arkansas Diminished Value Claims." Accessed July 11, 2021.
Insurance Information Institute. "2020 Insurance Factbook." Accessed July 11, 2021.
Insurance Information Institute.. "Facts + Statistics: Uninsured motorists." Accessed July 11, 2021.
Kelly Blue Book. "Penalties for Driving Without Car Insurance by State." Accessed July 11, 2021.