Every resident who wishes to title and register a vehicle in this state must have proof of financial responsibility for that vehicle. Obtaining financial responsibility means the vehicle owner is able to cover the costs of damages his vehicle causes.

Ways to Establish Financial Responsibility

To establish financial responsibility for your vehicle, you must purchase liability coverage from an Arkansas-licensed auto insurance carrier.

Arkansas Liability Insurance Requirements for Private Passenger Vehicles

Before you title and register your vehicle, you must show the Office of Motor Vehicles (OMV) proof of a liability insurance policy that includes at least:

• $25,000 per person for bodily injury

• $50,000 per accident

• $25,000 to cover property damage

The above amounts of coverage meet the state’s minimum liability insurance requirements; however, keep in mind you can purchase insurance policies that provide additional types of coverage and more comprehensive protection.

Electronic Reporting

Per the Insurance Verification Program, insurance carriers must report the liability insurance information of all owners of vehicles registered in the state.

This information remains in the Arkansas Insurance Database and includes updates regarding new policies and when existing policies start covering new vehicles, as well as insurance reinstatements, non-renewals, and cancellations.

Proof of Insurance and Financial Responsibility

Because you must show proof of insurance when you title and register your vehicle, and because the Arkansas Insurance Database holds your insurance information, you might think you’ve sufficiently met the proof of financial responsibility requirement.

However, you must also show proof of insurance if a law enforcement officer ever pulls you over or you’re involved in an accident. Having no proof of insurance can get you into trouble with the OMV and the courts. To make sure you’re covered in these situations, keep the insurance card your carrier issues you in your vehicle at all times.

Penalties for Failure to Maintain Financial Responsibility

The OMV will suspend your registration if you fail to maintain financial responsibility. To reinstate your registration, you must obtain and show proof of liability coverage, and you might even need to pay a reinstatement fee.

If you need more information about reinstating a suspended registration or general liability coverage requirements, give the OMV a call at (501) 682-4692.