Considerations

• The state of Arkansas requires all vehicle owners to purchase personal liability and property damage liability insurance on their vehicles due to legislation passed in 1999. Owners cannot register a vehicle with the Arkansas Department of Motor Vehicles if they cannot provide proof of auto insurance coverage. Residents do not have to insure their own vehicle against personal damage.
  
  

Size

• According to the Commissioner of the Arkansas Insurance Department, drivers in the state of Arkansas must obtain at least a $25,000 policy that covers bodily injury or death for a single person and a $50,000 policy that covers bodily injury or death for two persons as of 2010. Drivers must also obtain $25,000 in insurance to cover the damage or destruction of personal property and other vehicles.
  
  

Requirements

• Arkansas Code Section 23-89-403(3)(A) requires insurance agencies to offer uninsured motorist insurance so that drivers receive coverage if they are hit by an uninsured motorist. Because of the cost of medical bills, an uninsured motorist may not have the funds to compensate an injured party. This law does not set limits on how much insurance agencies may charge for this type of insurance. In the state, drivers do not have to purchase uninsured motorist insurance.
  
  

Exemptions

• Motorists can remain uninsured if they only operate off-highway vehicles that are used for pleasure or farm use, such as hauling wood for heating or transporting farm equipment. Persons who are temporary residents of the state and tourists do not have to purchase additional insurance coverage. Residents do not need to purchase insurance for non-operable vehicles.
  
  

Penalties

• Auto insurance companies report their policies to the state. Police may run the license plate of the vehicle through a computer database of registrations to determine whether the owner has purchased insurance or whether an insurance policy has expired. Arkansas residents who drive without liability insurance receive a $250 fine for a first offense without criminal charges. Subsequent offenses involve a fine of up to $1000, a year in jail and suspension of a driver's license.