Arkansas Car Insurance Requirements: Minimums, Fault Rules & Penalties

Minimum liability requirements

Arkansas requires all registered vehicles to be covered by a liability insurance policy that meets the following state-mandated minimums. These limits cap what your insurer will pay per claim — you are personally responsible for any damages that exceed them.

Coverage	Minimum Required
Bodily injury per person	$25,000
Bodily injury per accident	$50,000
Property damage per accident	$25,000

Arkansas's 25/50/25 structure matches the minimums used by many states, but these floors may fall short in a serious collision. Medical treatment for significant injuries frequently exceeds $25,000, and a multi-vehicle accident can push total damages past the per-accident cap. Higher liability limits and optional coverages such as uninsured motorist protection are worth weighing when selecting a policy. See coverage types explained for a full overview of your options.

Fault system

Arkansas is an at-fault state. After a collision, the driver who caused it is financially responsible for the resulting injuries and property damage. The injured party files a claim against the at-fault driver's liability insurance. If damages exceed policy limits, the at-fault driver can be held personally liable.

Arkansas follows modified comparative fault with a 50% threshold. Fault is allocated proportionally between the parties, and partial recovery is available under these conditions:

• If you are less than 50% at fault, you can recover damages from the other driver, reduced by your percentage of fault.
• If you are 50% or more at fault, you are barred from recovering anything.

For example: if your total damages are $60,000 and you are found 40% at fault, you can recover $36,000. This system allows partial recovery for drivers who share some responsibility for a crash, as long as the other driver bears the greater share of fault.

SR-22 requirements

An SR-22 is a certificate of financial responsibility that your insurance company files with the Arkansas Department of Finance and Administration (DFA). It confirms that your policy meets the state's minimum liability coverage requirements. The SR-22 is not a standalone policy — it is a form endorsement on an existing auto insurance policy.

Arkansas requires an SR-22 after:

• A DUI or DWI conviction
• A pattern of habitual traffic violations
• Being caught driving without insurance

The required filing period is three years from the date of the qualifying event. Any cancellation or lapse in your policy during this window obligates your insurer to notify the DFA, which results in an automatic suspension of your driving privileges. To reinstate, you must obtain a new policy with an active SR-22 endorsement and pay the applicable reinstatement fee. Use our ZIP code tool to compare SR-22 policy rates from carriers licensed in Arkansas.

Penalties for driving without insurance

Arkansas enforces its compulsory insurance law at traffic stops and through accident investigations. Penalties apply regardless of whether you caused an accident.

Offense	Fine	Additional Consequences
First offense	$50–$250 plus court costs	License suspended; SR-22 filing required; reinstatement fee due
Second offense	$250–$500	Extended suspension; continued SR-22 requirement

Arkansas's base fines for a first offense are lower than many states, but the indirect costs add up quickly. Court costs can equal or exceed the base fine, and license suspension disrupts daily life and employment. The SR-22 requirement that follows a citation typically results in elevated insurance premiums for the full three-year filing period.

A lapse in insurance history also signals elevated risk to future carriers, who use coverage continuity as one factor in setting rates. The cumulative cost of a citation — fines, fees, and higher future premiums — routinely exceeds what continuous coverage would have cost over the same period.

For guides covering other states, visit the State Rules hub.