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Last updated: June 2, 2023

PIP Insurance in Arkansas

What happens if you’re involved in an accident without personal injury protection?

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Arkansas is a no-fault state, which means in the event of a car accident, each driver pays for their own injury costs and those of their passengers. However, the state doesn’t require personal injury protection (PIP) insurance, which pays for medical coverage, wage losses, and death benefits regardless of fault. Here’s what you need to know about PIP insurance in Arkansas.

Does Arkansas Require PIP Insurance?

To reiterate, Arkansas does not require PIP insurance. But if a driver has it, the coverage would apply to the medical bills, death benefits, lost wages, and child care costs for everyone in their motor vehicle, regardless of who caused the accident.

No-Fault Laws

Because Arkansas is a no-fault state, an at-fault driver is responsible for the other party’s property damage only up to $25,000 or their medical costs over $50,000 per accident. However, to make it easier for victims to get compensated, PIP can cover medical expenses, death benefits, and wage losses, regardless of fault.

What Is No-Fault Insurance?

No-fault insurance, as opposed to liability insurance, means each party has the option to be responsible for its own medical costs, regardless of fault, aside from the other party’s bodily injury coverage. With PIP, the no-fault driver won’t have to prove that the other driver was at fault in order to be medically compensated. Rather, they can cover their own medical costs, deaths, and lost wages through PIP.

At-Fault vs. No-Fault

In contrast to no fault, at-fault states have medical payments coverage instead of PIP. It does not include reimbursements for lost wages and child care. The at-fault driver is responsible for the other party’s injuries and property damage. If the victim does not agree with their payout, they can sue for both economic damages and non-economic damages, like pain and suffering.1

Features Personal injury protection Medical payments coverage
Pays for your medical expenses, regardless of fault Yes Yes
Fault system No fault At fault
Required Maybe No
Covers lost wages and child care Yes No

How No-Fault Claims Work

If you got into an accident that wasn’t your fault, you would file a third-party claim with the at-fault party’s insurer for your property damages and bodily injuries (although you’d have to prove fault). But if you or any of your passengers had injuries and you wanted to get compensated sooner, you could file a first-party insurance claim with your provider to get auto insurance coverage under PIP insurance, assuming you had this policy.

Modified Comparative Negligence

Arkansas’ modified comparative negligence laws mean that for someone to receive compensation for their losses in a civil suit, they must be less than 50 percent at fault.2

Coverages Arkansas Requires

While Arkansas doesn’t require PIP coverage, it does require liability coverage:

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

Your insurance agent is required to offer you liability coverage for uninsured/underinsured motorists (UM/UIM) as well as PIP, but you’re not required to buy these coverages. Only minimum coverage is mandatory.


Nearly 1 in 5 drivers in Arkansas doesn’t have car insurance, making it one of the top states where people drive without insurance.3

If someone hits your car and lacks insurance or limits high enough to cover your losses, UM/UIM would kick in so you don’t have to pay any damages out of pocket.


While every car insurance company offers many discounts, every insurance carrier in Arkansas is required to offer you the following two.

  • College graduate discount: For people who have graduated from college
  • Defensive driver discount: For senior drivers age 55 and over who have successfully completed a course approved by the Office of Driver Services4

Average Cost of Car Insurance in Arkansas

The average cost of car insurance in Arkansas, as of the most recent national data, was only $879 in 2020. That’s 19 percent lower than the national average of $1,047, according to the National Association of Insurance Commissioners.5

Best Car Insurance in Arkansas

With low costs statewide, you shouldn’t have trouble finding the best auto insurance in Arkansas.

Best Companies

Here are our top choices for different demographics.

  • Best overall: Direct Auto
  • Best for military/veterans: USAA
  • Best for teens: Nationwide
  • Best for safe drivers: State Farm


Direct Auto is also a great choice for high-risk drivers, which includes anyone with a bad record, teen drivers, someone with no driving history, or someone with a lapse in insurance coverage.

How to Get the Best Car Insurance in Arkansas

  1. Comparison shop. Compare quotes from different providers to see where you can get the lowest insurance rates.
  2. Research. Pricing isn’t the only factor you should consider. Also evaluate a company’s customer satisfaction ratings (from the Better Business Bureau, J.D. Power’s annual U.S. Auto Insurance and U.S. Auto Claims Satisfaction studies, and the NAIC’s Complaint Index), along with its financial strength ratings (from organizations like AM Best, Standard & Poor’s, and Moody’s). We also recommend checking out the insurance company’s mobile app ratings on Google Play or the App Store. In addition to checking third-party ratings, research the insurer on its website to uncover other key details. For example, does the company offer any specialty coverages you need, like rideshare insurance or roadside assistance? Does it have discounts that apply to you? What are its customer service options? Read our auto insurance reviews for deep dives into many of the top insurance companies on the market.
  3. Apply. A quote is just that: a quote. To find what your actual premium would be after comparison shopping, you’ll need to complete the insurance company’s application process, which will most likely require speaking to an agent.
  4. Pay your premium. Once you’ve been approved, your coverage will begin on your policy’s effective date after you’ve paid the first premium.


To learn more about buying auto insurance, read our article on how to get car insurance.


While Arkansas doesn’t require PIP insurance, we recommend getting it so you can get your and your passengers’ medical costs, child care costs, and lost wages covered in the event of an accident. Otherwise, you’ll be responsible for these costs out of pocket. PIP is part of full coverage car insurance, which also includes additional coverages like collision, comprehensive, and UM/UIM. Optional coverages like collision and comprehensive insurance will pay for your property damages, regardless of fault, in either collisions or events like theft, vandalism, or inclement weather.

Skimping on car insurance coverage may benefit you in the short term in the form of a lower premium, but if you have injuries, deaths, or property damages, you’ll pay much more later. Fortunately, with Arkansas’s low average annual cost for coverage, you can pay less than $900 for car insurance in the Natural State. To learn more, read our frequently asked questions below.

Frequently Asked Questions

What happens if the person not at fault in an accident has no insurance in Arkansas?

If the person not at fault in an accident has no insurance, their medical costs and property damages could be covered by the at-fault driver’s liability coverage up to the driver’s limits. However, the victim will be responsible out of pocket for any remaining costs.

Can you go to jail for not having car insurance in Arkansas?

You cannot go to jail for not having car insurance in Arkansas. However, you could face a $25 fine, license plate impoundment, registration suspension for 10 days, and a $20 reinstatement fee, according to the Arkansas Code section 27-22-104.

How much is car insurance in Arkansas per month?

Car insurance in Arkansas costs $73 per month on average, according to the most recent data from the National Association of Insurance Commissioners.

Does car insurance follow the car or the driver in Arkansas?

Car insurance follow the car in Arkansas, not the driver.


  1. What Is the Difference between No-Fault and At-Fault Insurance States? Legal Resources. (2023).

  2. 2010 Arkansas Code Title 16 – Practice, Procedure, And Courts Subtitle 5 – Civil Procedure Generally Chapter 64 – Trial And Verdict § 16-64-122 – Comparative fault. Justia. (2023).

  3. One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).

  4. Consumers FAQ. Arkansas Insurance Department. (2023).

  5. 2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).