Auto Insurance Law in Arkansas

The state of Arkansas requires its drivers to maintain valid auto insurance to comply with the state's financial responsibility requirements. To ensure that its citizens comply, the state verifies its driver's insurance compliance through an electronic system. Arkansas drivers who are found to be non-compliant with their financial responsibility requirements are subject to fines and penalties.

Liability

To comply with the state's financial responsibility requirements, Arkansas drivers are required to carry liability insurance with minimums of at least $25,000 per person, $50,000 per accident and $25,000 in property damage coverage, or 35/50/25. Liability coverage protects the other party against injuries and damages that you cause to them during an accident. This coverage pays the other party when you are found to be at fault for the accident.

Personal Injury Protection

Arkansas drivers are also required to carry personal injury protection coverage, or PIP. Unlike liability coverage, however, the state's drivers can reject this coverage if they decline the coverage in writing. This coverage reimburses accident victims for medical expenses, lost wages and death benefits. This coverage pays regardless of fault and also includes coverage when the insured party's vehicle strikes a pedestrian or a cyclist.

Uninsured Motorist

Uninsured motorist coverage insures Arkansas drivers against damages and injuries that are caused by an uninsured driver. This coverage is issued in per person/per accident/property damage limits, as liability coverage is sold. Policyholders can elect uninsured motorist coverages that are equivalent, or less than, the elected liability limits. Arkansas requires its insurance carriers to offer this coverage. Policyholders can decline uninsured motorist coverage in writing. Generally, insurance carriers will provide policyholders with a rejection form that must be signed and returned to make the rejection official.

Verification

Arkansas motorists are required to show proof of insurance at the time of vehicle registration, after an accident or traffic violation and upon the request of an officer or court official. In addition to the manual verification, the state keeps track of its drivers' compliance with the electronic verification system. All Arkansas insurance carriers are required to report all policy activity to the Arkansas Insurance Verification and Notification Network. Drivers whose policies have been canceled for any reason display as "not insured" in this system.

Noncompliance

Drivers in Arkansas who are found to be uninsured are subject to driver's license and registration suspensions. The minimum suspension period for lapsed insurance is 30 days. This period can be increased by the court for multiple lapses. In addition to license and registration suspensions, noncompliant drivers must pay reinstatement fees and secure valid auto insurance to reinstate their driving privileges.

SR 1-21

Motorists in Arkansas who are involved in vehicle crashes are required to report the accident to the department of motor vehicles (DMV) when the accident results in injuries or damages that total $1,000 or more. To report the accident, drivers must submit an SR-1 accident report, regardless of fault. This form must be completed by the driver's insurance carrier and submitted to the safety responsibility department of the DMV within 30 days of the accident. All uninsured drivers are subject to license suspension. However, the driving privileges of uninsured drivers who are deemed responsible for injuries and damages will be suspended until the other party is fully reimbursed for her financial loss. After reimbursing all expenses, paying reinstatement fees and completing the suspension, the reinstated driver must carry an SR-22 filing on his insurance policy for at least three years.

References

• AAMVA Financial Responsibility & Insurance Committee: Resource Guide
• Arkansas Insurance Department: Automobile Insurance
• Insure.com: Minimum Levels of Car Insurance You Are Required to Buy
• Arkansas Department of Finance and Administration: Insurance Verification
• Arkansas Department of Finance and Administration: Safety Responsibility