Arkansas Car Insurance Requirements
In Arkansas every car owner is required to purchase car insurance in order to register a vehicle and drive it beyond his private property. Unlike some other states there are no other options in Arkansas. As the law currently stands minimum liability for bodily injury, death, and property damage are all the state mandates. However, insurance companies are required by law to give all customers the option of purchasing uninsured/underinsured motorist (UM) coverage.
For purposes of clarification, liability insurance pays to cover the cost of damage or injury you inflict as a result of an accident you cause. Uninsured/underinsured motorist coverage pays for injuries or damage you suffer as a result of the actions of another driver who has no insurance.
In terms of liability insurance the minimum amounts accepted in Arkansas are $25,000/$50,000 for bodily injuries and deaths and $25,000 for property damage. Arkansas encourages drivers to consider higher liability amounts as an extra measure of security. With the cost of modern medical care being what it is, even a minor accident could rack up bills that easily exceed the minimum amounts.
One of the unique aspects to Arkansas’ compulsory insurance law is the fact that insurance companies are required to offer two discounts. The first discount is aimed at college graduates. The state implemented it as a means of encouraging young people to attend college and complete their degrees.
The other discount is for older drivers over the age of 55. They are eligible if they complete a defensive driver course approved by the state. Both of these discounts make it easier for Arkansas drivers to find and afford cheap car insurance.
Obeying the Law in Arkansas
In order to comply with the law, Arkansas drivers must do a couple of things. First of all, they must provide proof of insurance when titling and registering a car. They must also carry proof of insurance in their vehicles at all times and produce it when requested by a law-enforcement officer. The most common form of acceptable proof of insurance is an ID card provided by the insurance company.
Should you have a legitimate car insurance policy in force but are unable to furnish proof to a police officer, you may get away with a small fine or just a warning. But if an investigation reveals you don’t really have an insurance policy, the penalties can be quite stiff. Expect at least a fine and a registration suspension. Repeat offenses could result in more serious consequences up to, and including, license suspension.