Arkansas car insurance laws require every driver to carry liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage, along with uninsured motorist bodily injury coverage at the same minimum limits. The state verifies coverage electronically in real time, and driving without it brings fines, possible jail on repeat offenses, and suspension of your vehicle registration.
Minimum Liability Limits
Arkansas Code 27-19-605 sets the floor for liability coverage on every vehicle registered in the state:1Justia. Arkansas Code 27-19-605 – Requirements as to Policy or Bond
- $25,000 for bodily injury or death of one person in a single accident
- $50,000 for total bodily injury or death when two or more people are hurt in the same accident
- $25,000 for property damage per accident
Liability coverage pays what you owe other people when you cause a crash. It does not pay for your own injuries or your own vehicle. And it’s a floor, not a ceiling. A serious injury can generate medical bills well above $50,000, and anything past your policy limit comes out of your own pocket, which is why many drivers carry $100,000/$300,000/$100,000 or higher.
Uninsured Motorist and Personal Injury Protection
Two other coverages sit alongside liability in Arkansas law, and both are easy to overlook.
Uninsured motorist bodily injury coverage is mandatory. No auto liability policy can be issued in the state without it, at limits no lower than $25,000/$50,000.2Justia. Arkansas Code 23-89-403 – Bodily Injury Coverage Required It pays your medical costs when the driver who hit you has no insurance. Uninsured motorist property damage coverage must be offered but can be rejected in writing.3FindLaw. Arkansas Code 23-89-404 – Bodily Injury Coverage Required Underinsured motorist coverage, which fills the gap when the at-fault driver’s limits aren’t enough, must also be offered and can also be declined in writing, though you can only buy it if you’ve kept UM bodily injury coverage in place.4Justia. Arkansas Code 23-89-209 – Underinsured Motorist Coverage
Personal injury protection is included on every Arkansas auto policy unless you reject it in writing.5Justia. Arkansas Code 23-89-202 – Required First Party Coverage PIP pays your medical bills, part of your lost income, and funeral costs after a crash regardless of who was at fault, and it also covers household family members, passengers, and pedestrians struck by your vehicle. If you never signed a rejection, coverage is likely on your policy whether you noticed the premium line or not.6Justia. Arkansas Code 23-89-203 – Rejection of Coverage
How Arkansas Verifies Coverage
Arkansas runs an online insurance verification system that law enforcement and the Department of Finance and Administration can query at any hour.7Justia. Arkansas Code 27-22-204 – Functions of Online Insurance Verification System If the database shows no current coverage on your vehicle, the law treats the vehicle as presumptively uninsured, and the burden shifts to you to prove otherwise.
Proof can be a paper card or a digital image on your phone.8Justia. Arkansas Code 27-22-104 – Insurance Required – Minimum Coverage – Definitions Keep it accessible. If a stop happens and neither your device nor the state’s database confirms active coverage, you’ll be defending against a citation you could have avoided.
Penalties for Driving Without Insurance
Fines climb with each offense under Arkansas Code 27-22-103:
- First offense: $100 to $250
- Second offense: $250 to $500
- Third or later offense: $500 to $1,000, up to a year in jail, or both
The fine is only part of it. If you can’t show proof of active coverage when the case is resolved, the court orders your vehicle’s registration suspended. It stays suspended until you file proof of insurance with the Office of Motor Vehicle and pay a $20 reinstatement fee.9Justia. Arkansas Code 27-22-103 – Penalty Driving on suspended tags stacks more violations on top of the original one, and the situation gets expensive fast.
When You Need an SR-22
After certain serious violations, Arkansas can require you to file proof of future financial responsibility through your insurance carrier, a certificate filed with the Office of Driver Services and commonly called an SR-22.10FindLaw. Arkansas Code 27-19-712 – Certificate of Insurance as Proof It confirms you carry at least the state-minimum coverage. Common triggers include DUI convictions, at-fault accidents while uninsured, and accumulating multiple serious traffic violations.
The standard filing period is three years, and more serious or repeated offenses can extend it. Your insurer must notify the state if the policy lapses or is canceled, which triggers a license suspension. Not every insurer writes SR-22 policies, so you may need to shop, and premiums run higher for the length of the filing.
Fault and Comparative Negligence After a Crash
Arkansas is a fault state. The driver who caused the crash is financially responsible for the other party’s injuries and damage, and the injured party can claim against that driver’s insurer, sue, or work through their own insurer.
Under Arkansas Code 16-64-122, your recovery is reduced by your share of the blame.11Justia. Arkansas Code 16-64-122 – Comparative Fault If a jury finds you 20% at fault on a $100,000 claim, you take home $80,000. Cross the 50% line, though, and you recover nothing. This rule gives the other driver’s insurer a strong incentive to argue that you contributed to the crash, whether by speeding, following too closely, or something else the adjuster can characterize as negligence.
Deadline to File a Lawsuit
You have three years from the date of the accident to sue for personal injury or property damage in Arkansas.12Justia. Arkansas Code 16-56-105 – Actions With Limitation of Three Years Miss it and the court will dismiss the case no matter how strong the facts are. The deadline governs lawsuits, not insurance claims, but negotiating power drops sharply once the window closes, because the insurer knows you can no longer take them to court. Filing suit before the deadline preserves your rights even if talks are still going.