Statute of Limitations for Claims
In Arkansas, you have three years following an incident to file both property damage and personal injury claims. If you wait more than three years to file, your insurance company isn’t obligated to cover your claim.
Cancellation and Non-Renewal Notification Laws
If a company in Arkansas wants to cancel your insurance policy midterm, it has 20 days to notify you prior to the effective date, or 10 days if the cancellation is due to nonpayment. If the company decides merely to not renew your policy at the end of its term, it must give you 30 days notice prior to the policy’s expiration date.
Sure, everyone in Arkansas needs insurance, but those who own more than 25 vehicles can self-insure. Even with this fleet, you’ll need $100,000 of collateral, so most people take the traditional route for car insurance.
Car Inspection Requirements
Arkansas doesn’t require yearly vehicle inspections. Of course, that doesn’t mean you should neglect your car’s maintenance, whether that’s changing the oil or monitoring emissions through catalytic converters.
An SR-22 is proof of minimum insurance. However, this specific form isn’t required in Arkansas, no matter your conviction.
If you get 10 to 13 points on your current traffic violation report, you could be required to take a defensive driving course.
What is defensive driving? It’s driving in a way that helps you avoid hazards. You can take classes either online or in person. Talk to your agency director about finding classes.
Serious Injury and Monetary Thresholds
If you’re a victim of an accident, can you sue? What is the threshold for damages? In Arkansas, there is no injury-level or monetary threshold. Because Arkansas is a no-fault state, the victim can sue for noneconomic damages or injuries.
Accident Reporting Requirements
Do you need a police report to file a claim? No, but it certainly helps.
That being said, in Arkansas, you must report an accident if there is injury, death, or property damage worth over $1,000. Tell the police immediately in the case of deaths or injuries, or within 30 days for property damage. Failure to report an accident that meets this threshold could result in a license suspension.
Unfortunately for those with bad credit, in Arkansas, it is legal for insurance companies to discriminate based on credit scores when determining car insurance premiums. It’s also legal to discriminate on the basis of gender, so men pay more for car insurance in this state.
When Is a Car Declared a Total Loss?
A total loss is when a vehicle’s repairs would cost more than the state’s threshold. In Arkansas, if the repairs cost more than 70 percent of the car’s actual market value, it’s declared a total loss. You’ll receive the car’s actual market value or what you paid for it if you have gap coverage, which accounts for depreciation.