Arkansas Auto Insurance Guide

Whether you’re heading for Little rock on the I-40, tailgating on the 540 to Fayetteville for a Razorbacks game or taking Highway 21 to Berryville to explore Cosmic Cavern, the Natural State is filled with spectacular scenery, entertaining daytrips and miles of open roads. Sightseeing or commuting, car insurance is crucial to being a responsible Arkansas driver.

 

Car Insurance Resources for AR State Residents

As of 2010, there are nearly 2 million licensed drivers in the Natural State. The Insurance Research Council estimates that 15% of Arkansas’s drivers are uninsured. In 2008, Arkansas State Police reported a total of 63,137 traffic accidents. Of the 600 traffic accident fatalities that year, 265 involved drugs or alcohol. Uninsured, reckless and drug-impaired drivers are all good reasons to be sure you have enough car insurance while living and driving in the Natural State.

 

Arkansas State Minimum Auto Insurance

Arkansas state law requires you to carry a minimum amount of car insurance or face severe penalties. Arkansas has a tort-based system. If you cause an accident, you can be sued. While Arkansas does not require you to carry Uninsured/Underinsured Motorist coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requires shown below:

• $25,000 bodily injury per person per accident
• $50,000 bodily injury for all persons per accident
• $25,000 property damage liability

 

Arkansas Car Insurance Laws

Arkansas requires that you carry proof of Arkansas auto insurance in your vehicle and produce it if a law enforcement officer asks to see it. Failure to do so will result in a $25 fine. You may also face suspension of your driver’s license and vehicle registration. Reinstatement carries a $500 fee, and you will be required to keep an SR-22 Proof of Financial Responsibility Insurance Certificate on File for three years.

Your Arkansas car insurance can only be canceled because of non-payment, fraud or misrepresentation on your application or claim form, homicide arising from the use of your vehicle, three separate convictions for speeding or reckless driving during a policy period, or a conviction of drunk driving. You are entitled to 20-days’ written notice of cancellation for all of these conditions, except non-payment, which only requires 10-days’ notice.

Arkansas has an Insurance Verification Program that requires insurance companies to report coverage on all vehicles registered in the state. It tracks and reports data on new policies, non-renewals, cancelations and reinstatements.

 

Regulating Agency and References

Arkansas Department of Finance and Administration Insurance Department
This agency is responsible for regulating vehicle insurance policies sold in Arkansas. For more information, visit their website at www.insurance.arkansas.gov

Office of Motor Vehicles
This agency is responsible for licensing drivers and registering vehicles. You can learn more about Arkansas auto insurance requirements, penalties and related information at www.dfa.arkansas.gov/offices/motorVehicle/Pages/default.aspx

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org/

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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