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Arkansas Car Insurance Requirements: What You Must Carry

Arkansas requires at least $25,000 of bodily injury liability per person, $50,000 per accident and $25,000 of property damage liability, often written as 25/50/25. Personal injury protection (PIP) and uninsured motorist coverage also come with every Arkansas policy unless the named insured rejects them in writing.

The state checks coverage through an online verification system. If your car shows up as uninsured, the Department of Finance and Administration (DFA) suspends the registration, and you’ll pay a $100 reinstatement fee and need proof of current insurance to get it back.

Key Takeaways

  • Liability at 25/50/25 is the only coverage Arkansas law makes mandatory. PIP and uninsured motorist coverage are included unless you reject them in writing, and insurers must offer underinsured motorist coverage.
  • Arkansas isn’t a no-fault state. PIP pays some of your own medical bills and lost income after a crash, but it doesn’t limit your right to sue the at-fault driver or their right to sue you.
  • If the verification system can’t confirm your coverage, DFA suspends the registration. Reinstating it takes a $100 fee and proof of current insurance verified online, and the suspension can apply even if you buy insurance later.
  • A first conviction for driving uninsured carries a mandatory fine of $100 to $250. By the third offense the statute allows a fine of $500 to $1,000, a sentence of one year in jail, or both.

Arkansas Minimum Car Insurance at a Glance

CoverageRequirement
Bodily injury liability$25,000 per person and $50,000 per accident
Property damage liability$25,000 per accident
Personal injury protectionIncluded unless the named insured rejects it in writing
Uninsured motorist (bodily injury)Included at 25/50 or more unless rejected in writing
Underinsured motoristMust be offered at 25/50 or more; can be rejected in writing
Uninsured motorist property damageMust be offered, with a $200 deductible that is waived in some cases; can be rejected in writing
Collision and comprehensiveNot required by state law, though a lender or lessor may require them

The limits come from Ark. Code 27-22-104, which makes it unlawful to drive a car in Arkansas unless it’s covered by a liability policy or a certificate of self-insurance, and from the Safety Responsibility Act at Ark. Code 27-19-605. The Arkansas Insurance Department (AID) lists the same amounts in its automobile insurance brochure.

One DFA Safety Responsibility page lists a higher property damage figure, but the statutes set it at $25,000. RateFrog’s guide to liability limits explains how these numbers work.

Personal Injury Protection in Arkansas

Under Ark. Code 23-89-202, every auto liability policy on a private passenger vehicle issued in Arkansas has to include these PIP benefits:

  • Medical and hospital: up to $5,000 per person for expenses incurred within 24 months after the crash
  • Lost income: 70% of lost income from work, up to $140 a week, starting eight days after the crash and lasting no more than 52 weeks
  • Essential services: up to $70 a week for people who don’t earn an income, over the same period
  • Death benefit: $5,000, paid to the insured’s personal representative if the crash causes death within one year

PIP covers the named insured and household family members, plus passengers in the insured car and people it strikes, such as pedestrians and cyclists, regardless of who caused the crash.

Ark. Code 23-89-203 lets the named insured reject all of the PIP coverages or just some of them, in writing. Once you do, the insurer doesn’t have to remind you about the coverage when the policy renews or is replaced. Benefits are overdue if not paid within 30 days after the insurer gets reasonable proof, and if you have to sue to collect, Ark. Code 23-89-208 adds attorney’s fees and a 12% penalty plus interest.

PIP doesn’t take away anyone’s right to sue. Ark. Code 23-89-206 says tort liability from car crashes in Arkansas is retained, so there’s no lawsuit threshold like the ones some no-fault states use. RateFrog’s guide to personal injury protection explains how PIP works in general.

Uninsured and Underinsured Motorist Coverage in Arkansas

Under Ark. Code 23-89-403, every auto liability policy has to include uninsured motorist (UM) bodily injury coverage at no less than 25/50 unless the insured rejects it in writing. That rejection stays in place until you withdraw it in writing, and the insurer doesn’t have to offer the coverage again at renewal.

Underinsured motorist (UIM) coverage works differently. Ark. Code 23-89-209 says insurers must give you the chance to buy it, which you can reject in writing, at limits of at least 25/50. UIM is only available if you keep uninsured motorist coverage, so rejecting UM also rules out UIM. It pays when the at-fault driver’s liability limits aren’t enough to cover your injuries. In Arkansas, the statute says UIM isn’t reduced by the at-fault driver’s coverage, except to keep you from recovering more than your actual damages. RateFrog’s guide to uninsured and underinsured motorist coverage covers the basics.

Uninsured Motorist Property Damage

Ark. Code 23-89-404 requires insurers to give you the option of uninsured motorist property damage coverage, which pays for damage to your car caused by an uninsured driver. It comes with a $200 deductible. That deductible doesn’t apply if the same insurer covers your car for collision and UM property damage and the other driver is identified and solely at fault.

Proof of Insurance in Arkansas

Your insurer has to give you a proof-of-insurance card under Ark. Code 23-89-213. Ark. Code 27-22-104 lets you show it on a phone or other device, and showing the device doesn’t authorize a search of anything else on it without a warrant or probable cause. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.

The same statute creates a presumption that a car is uninsured if the driver can’t show a card at a stop or the online system shows no current coverage. If you were insured but didn’t have proof with you, Ark. Code 27-22-111 sets a $25 fine plus court costs. You also need proof of insurance to register a car or renew its registration.

How Arkansas Checks Your Coverage

Arkansas’s online insurance verification system went into effect on January 1, 2020. Under Ark. Code 27-22-204, DFA, courts and law enforcement can check coverage around the clock.

When a vehicle is found in violation, Ark. Code 27-22-209 directs DFA to suspend its registration, and DFA or a third party notifies the owner. The suspension can apply even if you buy insurance or sell the car afterward. To reinstate, you pay a $100 reinstatement fee and show current insurance that can be verified through the online system. The statute doesn’t set a response window, so read your notice carefully for any deadline it gives. DFA’s Office of Motor Vehicle handles registration questions.

Penalties for Driving Without Insurance in Arkansas

A no-insurance violation can bring a fine, a registration suspension and sometimes an impounded car.

Fines and Jail

Ark. Code 27-22-103 sets these penalties:

  • 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, being “sentenced to one (1) year in jail,” or both

If you show the judge that you had the required coverage when you were arrested, the judge may dismiss the charge. A 2019 law raised the first-offense minimum from $50 to $100, so older sources quoting $50 are out of date.

A separate statute, Ark. Code 27-22-210, also classifies driving uninsured, refusing to show proof and showing proof when there’s no valid insurance as Class C misdemeanors. Arkansas’s general limits for a Class C misdemeanor are a fine of up to $500 under Ark. Code 5-4-201 and up to 30 days in jail under Ark. Code 5-4-401. The statutes don’t say how this classification and the 27-22-103 fines fit together, so the amounts on your citation and from the court are the ones that apply to you.

Registration Suspension by the Court

This is separate from the verification system. Under 27-22-103, if you can’t show coverage when the charge is resolved, the court orders the Office of Motor Vehicle to suspend the car’s registration until you present proof of coverage. Reinstating that suspension costs $20.

Impoundment

Impoundment isn’t automatic. Under 27-22-210, an officer may impound the car if the driver can’t show proof of registration and insurance, and that proof can be checked through the online system. Ark. Code 27-22-109 also allows it when a driver who can’t show proof of insurance is cited for a traffic violation and has three or more prior no-insurance warnings or convictions. The owner or driver pays towing and storage, even if the car was insured but proof wasn’t shown, and can contest the impoundment.

A Crash Without Insurance

Under Ark. Code 27-22-105, a driver who isn’t adequately insured after a crash is guilty of a Class A misdemeanor, which under Arkansas’s general limits carries a fine of up to $2,500 and up to a year in jail. The court may order the car impounded until you prove coverage, and the owner pays the impound costs.

The Safety Responsibility Act adds license consequences. Under Ark. Code 27-19-501, you have to file an accident report with DFA’s Office of Driver Services within 30 days if anyone is hurt or killed or one person’s property damage is more than $1,000. If you weren’t insured and DFA sends a notice requiring security, Ark. Code 27-19-610 says your license and registrations are suspended if you don’t deposit it within 20 days. DFA’s Safety Responsibility page lists other ways to resolve it, such as a signed release from the other party.

Under Ark. Code 27-19-611, the suspension lasts until you deposit the security, or until a year has passed and you show no lawsuit over the crash was filed. A release, court decision or agreement can also end it. RateFrog’s guide to what happens when insurance lapses covers the broader risks.

Fake Proof of Insurance

Under 27-22-210, knowingly altering or forging an insurance card, or making or selling a fake one, is a Class D felony. That carries up to six years in prison and a fine of up to $10,000.

SR-22 Filings in Arkansas

DFA’s driver services pages don’t use the term SR-22. Arkansas law calls it proof of future financial responsibility. Under Ark. Code 27-19-703, it’s required when your license is suspended or revoked because of a conviction or a bail forfeiture. You can’t get a license or registration back until you give that proof, and you have to keep it up afterward.

One way to give proof is a written certificate from your insurer filed with the Office of Driver Services under Ark. Code 27-19-712. The statute doesn’t set a fixed period for keeping the filing, so ask Driver Services how long your case requires. RateFrog’s SR-22 guide explains how these filings work in general.

If You Can’t Find Coverage

The Arkansas Automobile Insurance Plan is for drivers who are entitled to coverage but can’t get it through ordinary methods. Under Ark. Code 27-19-106, the Insurance Commissioner approves the plan and insurers have to participate. According to the plan’s page on AIPSO, any agent with an Arkansas property and casualty license can submit an application. AIPSO lists the plan’s phone number as (800) 413-5808.

If an insurer cancels for a reason other than nonpayment, or declines to renew, Ark. Code 23-89-307 requires it to tell you that you may be eligible for the plan.

How Arkansas Insurers Set Rates

Insurers can use credit information in Arkansas, with limits. Under Ark. Code 23-67-405, an insurer can’t:

  • Deny, cancel or nonrenew a policy based solely on credit information without considering any other underwriting factor
  • Use a credit score calculated with your income, gender, address, ZIP code, ethnic group, religion, marital status or nationality
  • Treat you worse solely because you don’t have a credit card account

Drivers 55 and older can get a discount under Ark. Code 27-19-608 after completing a course taught by an instructor approved by the Office of Driver Services. The law requires “an appropriate reduction” in liability and physical damage premiums for three years, without setting a percentage. Self-instructed courses don’t qualify, and you retake the course every three years to keep it. RateFrog’s guide to the factors that affect car insurance rates covers the rest.

Cancellation and Nonrenewal Rules

Once a policy has been in effect for 60 days, or if it’s a renewal, Ark. Code 23-89-303 limits cancellation to listed reasons. These include nonpayment, fraud or a material misrepresentation, a license or registration suspension during the policy period, and certain driving convictions, such as DWI.

Under Ark. Code 23-89-304, the insurer has to give at least 20 days’ notice before a cancellation, or 10 days with the reason stated when you haven’t paid. For nonrenewal, Ark. Code 23-89-305 requires notice or a renewal offer at least 30 days before the term ends, and a renewal offer has to state the new premium. The nonrenewal notice rule doesn’t apply when the reason is nonpayment. RateFrog’s guide to car insurance grace periods explains what usually happens when a payment is late.

Is Arkansas’s Minimum Coverage Enough?

A 25/50/25 policy can run out fast in a serious crash, and $25,000 of property damage coverage may not replace a newer car. If a claim is more than your limits, you could owe the rest. PIP’s medical benefit is capped at $5,000 per person.

Before you sign a rejection form for PIP, UM or UIM to lower your premium, think about how you’d pay your own medical bills and lost income if the other driver has little or no insurance. RateFrog’s guide to how much car insurance you need can help you weigh the tradeoffs, and you can compare car insurance quotes at several coverage levels.

Where to Get Help

AID’s Consumer Services Division handles questions and complaints about insurers and agents at 501-371-2640 or toll-free at 1-800-852-5494. You can also file online through its complaint page.

For registration suspensions and proof of insurance at registration, contact DFA’s Office of Motor Vehicle. For license suspensions, financial responsibility filings and uninsured crashes, contact the Office of Driver Services at 501-371-5581 or its Safety Responsibility section at 501-682-7100.

Frequently Asked Questions

Is PIP Required in Arkansas?

Not strictly. Every Arkansas policy on a private passenger car has to include PIP unless the named insured rejects it in writing. You can reject all of it or only some of the benefits.

Is Arkansas a No-Fault State?

No. Arkansas law keeps tort liability for car crashes, so you can still sue the at-fault driver, and they can sue you. PIP is an extra benefit, not a limit on lawsuits.

What Happens If Arkansas Can’t Verify My Insurance?

DFA suspends the vehicle’s registration and notifies you. To reinstate it, you pay a $100 reinstatement fee and show current insurance that can be verified online. Check your notice for any deadline it lists.

What Is the Fine for Driving Without Insurance in Arkansas?

Under Ark. Code 27-22-103, a first offense carries a mandatory fine of $100 to $250 and a second offense $250 to $500. A third or later offense can bring a fine of $500 to $1,000, a sentence of one year in jail, or both.

Sources

James Shaffer

James Shaffer writes and edits RateFrog's car insurance guides. He has worked in the auto insurance industry since 2012 and focuses on how coverage, claims, discounts and insurer rules work in practice. His analysis has been featured in NBC News, CNN and The Washington Post, and he holds a degree from Bentley University.

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