Arkansas Auto Insurance Laws

If you drive vehicles in the state of Arkansas, it is mandatory for you to follow Arkansas auto insurance laws, as per which you must always carry a valid auto insurance policy with at least the minimum amount of coverage as specified under the laws. Non-compliance of these laws will result in certain fines and penalties. Following is a brief rundown on some of the basic things that you must be well aware of in this regard.

Penalties And Fines

If you are found guilty of driving a vehicle without proper insurance coverage, your driving license as well the registration of your vehicle will get suspended for at least one month. However, if you are found guilty of this offence more than once, the court may extend the period of suspension. In order to get your driving privileges back, you must first obtain proper insurance coverage as required under the Arkansas auto insurance laws, and besides that, you must also pay reinstatement fee.

Proof Of Insurance

There can be an array of situations when you are asked to show proof of auto insurance, such as upon the request of a court official, upon the request of a traffic official, after an accident or traffic violation, and even at the time of vehicle registration. There is also an electronic verification system in place, as per it is mandatory for all insurance companies to report the policy-related activities of the policyholders in a timely manner. It means if your policy has expired and you have not yet renewed the same, it will automatically be reported to the electronic verification system.

Minimum Liability Insurance Requirements

The minimum liability insurance coverage under Arkansas auto insurance laws is usually indicated as 35/50/25. It means your insurance policy must include at least $35000 of coverage per individual, at least $50000 of coverage per accident, and at least $25000 of coverage for property damage. These liability insurance coverage requirements are in place to protect other parties, who get injured because of an accident involving your vehicle. This also provides monetary protection to you, as when such an accident occurs, the insurance company pays for the damage, not you.

As per Arkansas auto insurance laws, it is also compulsory for you to report all auto accidents to the department of motor vehicles (DMV).