Arkansas Auto Insurance Laws, Minimums, Requirements

The state of Arkansas?

  • In the state of Arkansas, it is against the law to operate a motor vehicle without minimum liability on your vehicle.
  • Arkansas verifies that all motor vehicles registered in the state maintain liability insurance as required by Arkansas law.
  • In the state of Arkansas, the minimum liability insurance coverage is 25/50/25, that is $25,000 per person per accident, $50,000 for all persons, and $25,000 to cover property damage of the other party.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Arkansas, your policy must include minimum liability coverage of:

$25,000 for bodily injury liability for one person in an accident,
$50,000 for all injuries in an accident,
and $25,000 for property damage in an Tucson accident

What are the Rental Car Insurance Requirements?

In the state of Arkansas it is against the law to operate a motor vehicle without minimum liability, this includes rental cars. If your credit card or your current auto insurance policy does not cover car rentals, the state of Arkansas requires that you carry a copy of the rental agreement when renting a motor vehicle, which specifies the insurance coverage.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required by the state of Arkansas. Most Arkansas insurance companies recommend this extra protection, however, as it provides additional protection and financial assistance should an accident involving an underinsured or uninsured motorist result in bodily injury.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Arkansas, exclusion from coverage of a driver in a household is permitted. This means Arkansas car insurance companies may exclude certain driver’s from your household if not specifically listed on the application. In the state of Arkansas, this may be called “Household,” “Family,” or “Intra-Family” Exclusion.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In the state of Arkansas, it is illegal to operate a vehicle without minimum liability insurance on your vehicle. This means that your vehicle must be insured at all times. Arkansas strictly enforces these laws by suspending the driver’s license of anyone who has let their insurance lapse.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Arkansas, auto insurance companies can use Personal Credit History to assess risk and determine rates. However, under Arkansas law, personal credit history cannot be the sole factor in determining whether someone can obtain insurance or the amount to be paid for the coverage. Arkansas adds an additional notice when a consumer applies for insurance or seeks a quote. The notice informs the consumer that credit will be used in conjunction with other factors to determine whether coverage will be offered and at what price.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

Arkansas is a Tort State. This means that the driver who is at fault in the accident must pay the victims medical expenses and the victim has the ability to file a court claim against the driver found to be responsible for the accident for any additional and related damages including pain and suffering and lost wages. Because Arkansas is a Tort state, most Arkansas insurance companies recommend that driver’s consider carrying higher coverages than the state minimums.

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