Arkansas Car Insurance Laws

Car insurance is certain to play a part in any claim that's made after a traffic accident. Arkansas, like most states, requires vehicle owners to maintain certain minimum amounts of coverage in order to operate a vehicle legally on the state's roads and highways. Read on for the details of Arkansas's auto insurance rules and how they'll affect an insurance claim or lawsuit after a car accident.

Is Arkansas a "No-Fault" Car Insurance State?

No. Arkansas follows a traditional "fault"-based system when it comes to financial responsibility for losses stemming from a car accident: injuries, lost income, vehicle damage, and so on. This means that the person who was at fault for causing the car accident is also responsible for any resulting harm (from a practical standpoint, the at-fault driver's insurance carrier will absorb these losses, up to policy limits).

A person who suffers any kind of injury or damage due to an auto accident in Arkansas usually can proceed in one of three ways:

• by filing a claim with his or her own insurance company, assuming that the loss is covered under the policy (in this situation, the injured person's insurance company will likely turn around and pursue a subrogation claim against the at-fault driver's carrier)
• by filing a third-party claim directly with the at-fault driver's insurance carrier, or
• by filing a personal injury lawsuit in civil court against the at-fault driver.

(Around a dozen states follow some version of a no-fault car insurance system, but Arkansas isn't one of them.)

What Are the Minimum Car Insurance Requirements In Arkansas?

Arkansas requires that each motor vehicle in operation on the state's roads be covered by liability insurance. The required minimum amounts of liability car insurance coverage in Arkansas are:

• $25,000 for injury to or death of one person in an accident caused by the driver of the insured vehicle
• $50,000 for injury to or death of more than one person in an accident caused by the driver of the insured vehicle, and
• $25,000 for property damage per accident caused by the driver of the insured vehicle.

What Does Liability Car Insurance Cover In Arkansas?

Liability car insurance coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.

You can (and in some situations should) carry more than the minimum required amounts of liability coverage listed above in case you cause a serious crash and extensive car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you're personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Who Is Covered By Liability Car Insurance In Arkansas?

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Remember that the liability coverage we discussed here doesn't apply to your own injuries or vehicle damage after an Arkansas car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, personal injury protection (PIP) can be used to pay your car accident medical bills (this coverage is optional in Arkansas), and collision coverage (also optional in Arkansas) can pay for repairs to (or replacement of) your damaged vehicle after a car accident.

Do I Need Uninsured Motorist Coverage In Arkansas?

When you apply for liability coverage in Arkansas, you must be offered the chance to purchase coverage for:

• uninsured motorist (UIM) coverage for both bodily injury and property damage, and
• underinsured motorist coverage for bodily injury.

These coverages are optional in the sense that you can decline to include (and pay for them) as part of your policy. But both can come in handy, and UIM especially can prove irreplaceable if you get into a car accident that's caused by someone who is driving without insurance. You can make a claim under your UIM coverage and receive compensation for your accident-related injuries and other losses, just as you might make a claim against the at-fault driver's insurance.

Getting Help After a Car Accident In Arkansas

For more details on car insurance coverage requirements and options in Arkansas, check out the state's Department of Insurance "Consumers FAQ" page.

If you've been involved in an accident, you might want to read more about Arkansas car accident laws and your options for getting compensation for your losses. And for tips on when it might make sense to talk to a lawyer, learn how an attorney can help with your car accident case.