Here are the most important laws you need to know before insuring your car in Arkansas.
Minimum Liability Coverage
Arkansas requires liability insurance only, which covers the property damages and medical costs of people outside of your vehicle:
- Bodily injury liability coverage: $25,000 per person and $50,000 per accident
- Property damage liability coverage: $25,0001
Penalties for Driving Without Insurance
If you’re caught and convicted of driving without insurance in Arkansas, you’ll be issued a traffic violation and a $25 fine if you had insurance and simply lacked proof at the time you were pulled over. However, if you didn’t have insurance at all, the state will impound your vehicle, revoke your license plate and suspend your registration 10 days after the revocation. During this period, you can buy insurance, but you’ll still need to pay a $20 registration and license plate reinstatement fee, plus the following penalties:
- First offense: Fee of $50 to $250
- Second offense: Fee of $350 to $500 fee
- Third or subsequent offenses: Fee of $500 to $1,000, up to one year in jail or both2
Make sure to carry proof of insurance every time you drive in Arkansas.
No-Fault Insurance System
Due to Arkansas’ no-fault system, the at-fault party in an accident is responsible for all of the injuries and property damages they cause. The victim can sue in a civil suit if they were less than 50 percent at fault, in line with the state’s modified comparative negligence law.
In Arkansas, the law says car insurance agents and brokers must offer you two potential discounts when you’re buying a policy. The first is a discount for college graduates. The second is a discount for senior drivers, age 55 and older, who complete defensive driving courses successfully that the Office of Driver Services has approved.
In this state, you’ll need insurance to register your car, so make sure to bring proof of insurance, a primary document such as a bill of sale and a Federal Odometer Statement with you to the DMV.3
Cancellation and Nonrenewal
Car insurance companies may choose to cancel your policy midterm or not renew it when the term ends. However, legally, they must notify you 20 days before the cancellation goes into effect, giving you time to find alternative coverage. If the insurer is canceling your policy due to unpaid premiums, that notice period is cut to 10 days. For nonrenewals, the window is 30 days prior to your expiration date.