Arkansas Car Insurance Requirements

Arkansas drivers are required to purchase a minimum of $25,000/$50,000/$25,000 in bodily injury and property damage liability coverage.
Written by Amy Bobinger
Edited by Jessica Barrett
law requires drivers to carry a minimum amount of liability insurance coverage mandated by the state, often summarized as 25/50/25—$25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $25,000 of property damage liability per accident.

Car insurance requirements in Arkansas

If you’re driving a motor vehicle in Arkansas, state law requires that you carry
liability insurance
that meets the following coverage limits:
If you’re found to be at fault in an accident with another driver, your liability insurance policy will cover the cost of the other person’s property damage repair costs and medical bills up to your policy limits.
Liability insurance is classified into two types of coverage:
  • Bodily injury liability covers the cost of injuries and lost wages for the other party if you are at fault up to your policy limits.
  • Property damage liability covers the cost of property damage for any other parties involved in an accident where you are at fault up to your policy limits.
Although personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage aren’t required in Arkansas, auto insurance companies must offer you the opportunity to purchase it.
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When you shop for a car insurance policy with
, your policy will automatically start with the minimum liability requirements for the state where you live.
From there, it’s easy to customize your coverage options.

Is minimum coverage the most cost-effective option?

Arkansas’ minimum liability coverage limits are average compared to other states, but if you only buy auto insurance that meets the state minimum leaves, you could be vulnerable if you’re involved in an at-fault accident.
  • Liability insurance only covers injury expenses and repair costs for the other party if you’re found at fault in a car accident. It won’t cover your own medical bills or repair your vehicle—you’ll need to purchase additional car insurance coverage for that.
  • Arkansas’ minimum liability limits might not cover the whole cost of an at-fault accident. According to data published by the Insurance Information Institute (III), the average bodily injury liability claim in 2021 was $22,734, and the average property damage claim was $5,314.1  And while Arkansas’ minimum auto insurance coverage would cover an average accident, a collision with significant damage or serious injuries could easily exceed that.
  • The other party could sue you if their damages exceed your liability coverage. Not only would you have to pay out-of-pocket for any medical bills or vehicle repairs that go over your liability limits, but you could also be held responsible for things like lost wages, pain and suffering, and more.
  • Raise your liability limits to at least 100/300/100
  • Add collision and comprehensive coverage to cover your vehicle
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When you compare insurance quotes with
, you’ll see rates for policies that include different levels of coverage.
That makes it fast and easy to see how much you would pay for different plans.
Financed Vehicles
Although not part of Arkansas’s state-mandated insurance, if you’re leasing or financing a car, you may be required to purchase coverage for physical damages, also known as a
full-coverage auto insurance
policy, that includes comprehensive and collision coverage. 

Average cost of Arkansas auto insurance

As of May 2023, the average minimum liability car insurance policy in Arkansas costs $108 per month or $1,294 per year. The average full-coverage car insurance policy costs $184 per month or $2,211 per year.
Car insurance premiums vary between drivers. Car insurance companies
calculate rates
based on several factors, including your age, where you live, your driving record, the make and model of your vehicle, the insurance options you choose, and more.

Optional coverages in Arkansas

Here are a few types of coverage you might consider adding to your Arkansas car insurance policy:
  • Collision insurance
    : Covers the cost of the damage to your car that results from a collision with another vehicle or stationary object.
  • Comprehensive insurance
    : Protects you from the costs of non-collision damage to your car—including damage from theft, vandalism, floods, hail, and more.
  • Personal injury protection (PIP)
    : PIP helps cover injury-related costs for yourself and your passengers after a car accident, regardless of who’s at fault. In Arkansas, you can choose your PIP coverages, which include medical payments (MedPay), lost wages, and death benefits.
  • Gap insurance
    : If you lease or finance a vehicle and it’s deemed a total loss, gap insurance covers the difference between how much it is worth at the time of the incident (the
    actual cash value
    ) and how much you still owe on your
    car loan
    purchase it from your insurance company
    , not your dealership. 
  • Towing and labor
    : Many insurance companies will offer towing and labor coverage—also known as roadside assistance—that will help cover the costs of standard roadside assistance services, like towing, jumpstarts, or gas delivery.
  • Uninsured motorist coverage
    : In Arkansas, you can purchase uninsured motorist bodily injury coverage and uninsured motorist property damage coverage to help pay for vehicle repairs and medical expenses after a car accident with an uninsured driver.
  • Underinsured motorist coverage: If you get into an accident and your damages exceed the at-fault driver’s liability limits, underinsured motorist bodily injury will help pay for your vehicle repairs and medical bills up to your policy limits.
Note that some of these coverage options—like comprehensive and collision coverage—will require you to pay a deductible.
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Penalties for driving without insurance in Arkansas

If law enforcement catches you
driving without insurance
in Arkansas, you could face the following penalties: 
First offense
Second offense
Subsequent offenses
Up to $250, unless proof of insurance is presented within 30 days of violation
Minimum $250 up to $500
Minimum $500 up to $1,000
Jail time
One year in jail or a combination of a fine and jail time
Driving privileges
Vehicle registration suspended; possible vehicle impoundment
Vehicle registration suspended; possible vehicle impoundment
Vehicle registration suspended; possible vehicle impoundment
Reinstatement requirements
Proof of car insurance; $100.00 reinstatement fee; towing and storage fees if vehicle was impounded
Proof of car insurance; $100.00 reinstatement fee; towing and storage fees if vehicle was impounded
Proof of car insurance; $100.00 reinstatement fee; towing and storage fees if vehicle was impounded


Is liability insurance required in Arkansas?

The state of Arkansas requires that all drivers carry liability coverage that adheres to the state's minimum car insurance requirements. That means carrying a minimum of $25,000 bodily injury liability coverage per person, $50,000 per accident, and $25,000 of property damage liability per accident.

Is Arkansas a no-fault state for car accidents?

No, Arkansas is an “at fault” state, meaning that the driver at fault in an accident is responsible for paying for the damages they have caused.

What is considered full coverage in Arkansas?

A full-coverage auto insurance policy in Arkansas will include the state’s minimum liability limits plus collision and comprehensive insurance.

Do you need insurance to register a car in Arkansas?

Yes—you must show
proof of insurance
when you register your car in Arkansas. You’ll need to show that your policy meets the state’s minimum 25/50/25 liability coverage. Remember that you have 30 days to register the car after purchase, but there is no grace period for buying insurance. To drive legally, you will need an active insurance policy.

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