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Arkansas Auto Insurance Laws

Arkansas auto insurance laws protect motorists in the state by providing them with a set of rules governing the minimum coverage they need for their vehicles. The purposes of these laws are to minimize the number of uninsured motorists on the road and to provide a framework for drivers to build a policy around. Nebraska requires auto liability insurance for all drivers. Liability insurance protects the covered driver in at fault accident situations. Beyond this required element, insurers are required to offer drivers a few other options, and additional elective areas of coverage exist. It is up to each Arkansas driver to come up with the policy specifics that best work for them.

AR Auto Liability Insurance

Every driver in the state of Arkansas is required to carry auto liability insurance, even businesses during the off season, meeting state minimum requirements for coverage. The state mandates split limit liability coverage. This system divides a policy into three separate parts. The first two are devoted to bodily injury liability (one for single injury accidents and the other for collisions resulting in multiple injuries), and the third is set aside for dealing with property damage liability. Currently the minimum limits of coverage legal for drivers in the state of AR is 25/50/25, with each number representing in thousands of dollars the minimum limits for the three respective parts of a split limit policy [1].

Of course, Arkansas drivers are free to increase their protection, and many of them do. Insurance industry experts recommend beefed up liability protection for drivers; in fact, most default policy offerings contain much higher levels of coverage unless the driver specifically asks for pricing on a bare bones plan. The average cost of liability accidents rises steadily both in Arkansas and around the country. Medical expenses are much higher than they were even a decade ago, and auto repair and replacement costs go up as the average cost of a new car climbs and advanced electronics make repairs more complex and parts more expensive. Although it obviously costs more up front to carry liability insurance with higher limits, the payoff comes the first time you have to file a claim for an at fault accident.

Car Insurance Options in Arkansas

Liability coverage is the only mandatory area of protection for drivers, but not the only requirement for auto insurance companies. Any time a motorist in the state applies for coverage, insurers must also offer uninsured bodily injury and property damage, underinsured bodily injury, and personal injury protection [1]. Each of these three areas of coverage adds to the span of a personal auto policy in different ways.

Uninsured motorist coverage covers the driver and the automobile if the other driver is at fault in an accident and carries no liability insurance. It provides the same financial coverage for injuries and property damage as you would normally get from that at fault driver if he or she was insured.

In a similar way, underinsured motorist bodily injury coverage protects the policy holder if the other driver in the accident is at fault and is insured, but at levels insufficient to meet all medical and other related expenses. Underinsured protection is a secondary policy, which means it is never paid out until that negligent driver's liability policy is completely exhausted.

Personal injury protection (PIP) provides medical coverage, lost wages and death benefits such as funeral expense reimbursement in the event of an accident regardless of fault. Also called no fault, PIP is not required in Arkansas and AR is not a so called "no fault state". But it is available and insurers are required to offer it as a part of any policy quote they extend to motorists in the state.

Other areas of protection available to AR drivers include comprehensive and collision, which are optional according to the state but essentially mandatory when a vehicle is leased or financed according the requirements of lien holders who wish to protect their financial stake in these vehicles while they are being paid for. Comprehensive insurance protects the policy holder against the cost of repairing damage to the vehicle resulting from acts of nature or other non collision circumstances. Collision simply pays out in accident scenarios.

Cheap Online Car Insurance

Drivers in Arkansas can save on their auto insurance by shopping around and comparing quotes from different leading insurers to make sure they find a cheap auto insurance rate The easiest and most effective way to guarantee real savings is to shop online. Auto liability insurance is important for all motorists, and not just because it is legally necessary. Saving money on premiums means auto owners can focus on maximizing their coverage and making sure they are protected. Learn about Arkansas auto insurance laws and compare quotes with our easy to use site.

[1] Retrieved 2010-06-08.


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