If you don’t have many car insurance claims, you may think that you don’t need to know much about car insurance in the state. However, you’d be wrong! If you end up violating Arkansas car insurance rules, you could end up facing heavy fines and even potential jail time.
Additionally, you should know that insurance carriers report the insurance status of vehicles to the state. So, if you let your insurance lapse, it won’t be long before the state knows. The solution is simple: you need to find affordable car insurance and continue your coverage to keep both you and your car protected!
What Are the Mandatory Car Insurance Requirements in Arkansas?
Previously, we touched on the average costs for the minimum insurance in Arkansas. The minimum insurance is liability coverage, but it’s not enough to have any form of liability insurance. You must also have coverage that meets the mandatory requirements set by the state.
What are those mandatory requirements, though? Below, we have a breakdown of Arkansas state minimum requirements for car insurance:
- Bodily injury liability coverage: $25,000 per person and $50,000 per accident
- Property damage liability coverage: $25,000 per person
Keep in mind that both getting additional types of insurance and increasing your coverage amounts can better protect you and your car against potential future accidents.
What Is the Penalty for Driving Without Insurance in Arkansas?
One of the reasons we encourage people to get more than the minimum required insurance is because it can save them a lot of money in the event of an accident. Therefore, driving without enough insurance is a mistake that people pay for (quite literally) every day. But what if you are caught driving without any insurance at all in Arkansas?
For the first offense, you may have to pay a fine of up to $250 and face the removal of your license plate. For the second offense, you may have to pay a fine of up to $500 and the suspension of your registration. For third offenses and beyond, you may have to pay a fine of $1,000. Arkansas may also require you to file proof of insurance through an SR-22 form, which can be very expensive.
What Factors Does Arkansas Law Allow in Determining Your Premiums?
Your zip code, as we discussed before, plays a part in how much you pay for car insurance. However, this is only one factor that your insurance carrier will look at. And there are several other factors that play a major role in how much you pay.
- Driving record and claims history
- Your zip code and address
- Marital status
- Type of vehicle
- Credit score
It’s in your own best interests to update your insurance carrier if any of these things change (for example, if you end up getting married or improving your credit score). In some cases, a big change in one of these factors can lead to a big reduction in how much you pay for your premium!
Am I Required to Report an Accident in Arkansas to Authorities?
Sometimes, drivers are hesitant to report a car accident to the authorities. That is because the driver’s insurance company will find out, and this (along with most insurance claims in general) is likely to raise the premium. And that brings us to another big question: do drivers in Arkansas actually have to report accidents to the authorities?
It all depends on the accident. You are only obligated to report an accident if it results in injury or death or if it causes more than $1,000 in damage. Otherwise, you and the other party can work out some kind of arrangement without getting the authorities or your insurance company involved.