Arkansas car insurance requirements and laws

Minimum car insurance requirements

Arkansas requires every vehicle to carry liability insurance of at least 25/50/25 (Ark. Code § 27-22-104): $25,000 for injuries to one person, $50,000 for all injuries in one crash and $25,000 for damage to other people's property. Two more coverages come with every Arkansas policy unless you turn them down in writing: personal injury protection and uninsured motorist coverage. Compare states with the state car insurance requirements lookup.

The PIP package. Arkansas PIP (Ark. Code § 23-89-202) pays, regardless of fault:

• up to $5,000 per person for medical, hospital and funeral expenses incurred within 24 months of the crash;
• 70% of lost income, up to $140 a week for up to 52 weeks, starting eight days after the crash (or up to $70 a week for essential services for people without income);
• a $5,000 accidental death benefit.

You can reject all or part of PIP in writing (§ 23-89-203), and once you do, your insurer does not have to offer it again at renewal.

What the minimums mean in practice. If you cause a crash and the other driver's medical bills reach $40,000, a 25/50/25 policy pays $25,000 and the other $15,000 can be pursued from you. If you total a $38,000 truck, your property damage coverage pays $25,000. how much liability coverage do you need? helps you choose limits above the floor.

Fault system and what it means after a crash

Arkansas is an add-on state: it keeps the traditional at-fault system and adds no-fault PIP benefits on top. The driver who caused the crash pays for the other side's losses through their liability insurance, while your own PIP (if you kept it) pays your early medical bills and lost wages quickly. Unlike true no-fault states, Arkansas does not restrict your right to sue the at-fault driver. See no-fault vs at-fault states.

Arkansas applies modified comparative negligence with a 50% bar (Ark. Code § 16-64-122). You can recover from the other driver only if your share of fault is less than theirs, and your award is reduced by your percentage. At 50% or more you recover nothing. comparative vs contributory negligence compares the rules across states.

Arkansas gives you three years to file a lawsuit for injuries or property damage (Ark. Code § 16-56-105), longer than many states. See statutes of limitations for car accident claims.

Optional coverage worth considering here

• Keep the PIP. Rejecting PIP saves a little premium, but it is the fastest money available after a crash, and it pays even when the crash was your fault. See Personal injury protection (PIP) explained.
• Uninsured and underinsured motorist. The Insurance Research Council estimates about 12.1% of Arkansas drivers were uninsured in 2023. If you buy liability limits above the minimum, Arkansas insurers must also offer uninsured motorist limits that match. See uninsured and underinsured motorist coverage explained.
• Comprehensive. Tornadoes, hail, flooding and deer strikes are comprehensive claims in Arkansas. See comprehensive coverage explained and hail, flood and storm damage: filing a comprehensive claim.
• Collision. Required by lenders and the only coverage that repairs your own car after a crash you cause.

What drives rates in Arkansas

The NAIC puts Arkansas's average annual auto insurance expenditure at $1,051 in 2023, below the national average of $1,282. Averages like this mix every kind of policy and are not a quote (What NAIC auto insurance data measures).

Lower average repair and medical costs and less congestion than big metro areas help hold Arkansas prices down. Severe spring storms, hail and tornadoes push comprehensive costs up, and rural two-lane highways see serious crashes. Rates differ noticeably between Little Rock, Northwest Arkansas and rural counties (Why your ZIP code changes your car insurance price), and your driving record and vehicle matter most of all (how car insurance rates are calculated).

Penalties for driving uninsured

Under Ark. Code § 27-22-103:

• First offense: a mandatory fine of $100 to $250.
• Second offense: a fine of $250 to $500.
• Third or later offense: a fine of $500 to $1,000, up to one year in jail, or both.

If you cannot show the court that you had coverage by the time your case is decided, the court sends an order to suspend the vehicle's registration. Showing that you were insured at the time of the stop can get the charge dismissed. See penalties for driving without insurance.

SR-22 and high-risk drivers

Arkansas's Office of Driver Services can require proof of future financial responsibility, usually an SR-22 filed by your insurer, after events such as a DUI, an uninsured crash or a license suspension. Ask the agency how long you must keep the filing in place, because a lapse can restart a suspension. SR-22 insurance explained walks through the process, and high-risk car insurance: options when insurers say no covers options if standard insurers turn you down.

Insurers with a strong presence in Arkansas

Farm Bureau members in Arkansas buy auto coverage underwritten by Southern Farm Bureau Casualty, and Shelter Insurance has a long-standing agent network in the state. National carriers State Farm, Progressive, GEICO and Allstate also write widely. Farm Bureau insurance: membership, eligibility and how it works explains how Farm Bureau membership works.

Where to get help

The Arkansas Insurance Department regulates insurers and resolves consumer complaints. Its Consumer Services Division can be reached toll-free at 800-852-5494 or at 501-371-2640, and complaints can be filed online at insurance.arkansas.gov. The department is located at 1 Commerce Way, Little Rock, AR 72202. Before filing, read how to file a complaint against a car insurance company. For a disputed injury claim or a question about fault, a licensed Arkansas attorney is the place for specifics.