Insurance Coverage in the State of Arkansas - What is required?

The State of Arkansas requires at a minimum that all persons driving on Arkansas roads have at least liability insurance coverage which pays for any claims when you are at fault in an accident. The minimum liability amount that you are required to carry by law is $25,000 per person for bodily injury, $50,000 per accident, and $25,000 to cover property damage to other's property.

Requirement of Coverages for Insurance Companies

The State of Arkansas also requires that insurance companies offer you medical payments, wage loss, underinsured and uninsured coverages. If you don't want these coverages, you have to sign to reject them. If you did not sign a rejection, these coverages may exist for you as a matter of law.

These additional coverage options are needed and vital to protecting you and your family. Here is a little bit more about each of them:

1. Medical Payments/Wage Loss Coverage

Commonly referred to as personal injury protection (PIP), these coverages will pay for medical expenses and lost wages when you are in an accident. How much of these bills will be paid depends on how much coverage you buy. The minimum coverage in Arkansas is $5,000 for medical bills and $140 per week or 70% of your salary for lost income.

2. Uninsured Motorist Coverage

Uninsured motorist coverage will pay for your injuries and damages when a wreck is caused by someone who doesn't have insurance of their own. You should have sufficient amounts of uninsured motorist coverage to pay for damages in the event you are in a severe accident.

3. Underinsured Motorist Coverage

Underinsured motorist coverage will pay if the person who causes the wreck doesn't have enough coverage to fully pay for your injuries and damages. Underinsured motorist is "excess" coverage over and above the liability limits of the person responsible for the accident. Again, underinsured motorist limits should be large enough to pay enough you in the event that you are in a bad wreck and have a lot of medical bills and lost wages.

If we can help answer these or other insurance coverage questions which arise from an accident, please do not hesitate to give us a call at 501-315-7491.