PIP Insurance in Arkansas

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.

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

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

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.

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

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

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

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.