All residents in the state of Arkansas must provide financial proof of responsibility for a vehicle that is titled and registered in their name. In order to provide this information, motorists must purchase liability insurance from a licensed insurance company. The Office of Motor Vehicles requires drivers to supply liability coverage before registering a motor vehicle. Once an individual has registered his or her vehicle with legal insurance coverage, the insurance card must be kept in the motor vehicle at all times. Failure to provide this information during any traffic violation will result in fines and possible legal hearings. If a driver can not maintain the required amount of auto insurance in Arkansas, he or she will have the registration suspended and pay a reinstatement fee.

Mandatory Minimum Coverage
Arkansas’s minimum liability coverage is put into place to provide victims with money to pay medical costs and property damage as a result of an accident. Liability coverage also protects the negligent driver from paying the high out of pocket repair costs. Liability coverage in Arkansas is $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $25,000 per accident for property damage.

Coverage Requirements for Bodily Injury
Arkansas drivers purchase liability policies to cover their financial responsibilities to another party if they are found to be the cause of a collision. With a $25,000/$50,000 liability policy, each injured individual can receive no more than $25,000 for expenses. If more than one person is injured, the group will be provided with $50,000 without exceeding $25,000 per person. For instance, if three people were victim to an accident, then the $50,000 would be split three ways pending the three individuals meet the requirement to withdraw the total amount. This will be reflected as a $25,000/$50,000 bodily injury quote on the policy.

Typical Bodily Injury Percentages to Victims
Arkansas drivers purchase coverage that pays without regard to fault. Each victim of an accident will receive up to $5,000 for hospital bills and funeral costs for incidents occurring within 24 months after the collision. They will also be compensated 70% of their total loss of wages beginning eight days following the collision. This benefit can not exceed 52 weeks and may be limited to $140 per week. A one time accidental death payment will be made in the amount of $5,000.

Coverage Required for Property Damage
Arkansas law requires a minimum of $25,000 in property damage coverage on liability policies. If a driver causes damage to any property that exceeds this amount, he or she will be responsible for the difference. This plan covers personal or public property in addition to damage inflicted on another vehicle. Fire hydrants, mail boxes, guardrails and light poles are some of the other examples of property that can be damaged during a collision.

Increases in Property Damage Coverage
Because motorists have a high probability to disturbing other forms of property, insurance agents suggest raising property damage coverage. In Arkansas, where property damage coverage is listed at $25,000, drivers may hover close to that sum if they total a vehicle in an accident. Additional property damage coverage raises the reoccurring payments but provides more financial protection.

Personal Injury Protection Coverage
Personal injury protection coverage is required in the state of Arkansas. This policy covers lost wages, pain and suffering and funeral expenses. This means that a driver’s insurance company is responsible for the injuries of the insured driver no matter who is at fault. States that require personal injury protection coverage as well as operate a tort system, like Arkansas, do not use a pure no-fault operation. Because every individual’s insurance company is responsible for costs, no one can be sued for damages unless they meet a certain criteria.

Uninsured/Underinsured Motorist Coverage
Under law, Arkansas liability issuing insurance companies must offer residents the option of uninsured/underinsured motorist coverage. The two plans are typically purchased in coordination with each other. If the purchaser elects this option, the minimum amount must meet the minimum bodily injury liability requirement.

Excluding Household Drivers
Excluding a driver within the household of an insured vehicle is permitted in Arkansas. Drivers who are legally licensed but do not operate a vehicle can be left off of a policy at the discretion of the insured. Many families do this to keep premiums low when household drivers do not have access to vehicles.