Arkansas Car & Motorcycle Insurance Requirements

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Arkansas Car & Motorcycle Insurance Requirements




Required Minimum Bodily Injury Coverage

* $25,000 per person injured in any one accident and $50,000 for all persons injured in any one accident

Required Minimum Property Damage Coverage

* $25,000 for injury to or destruction of property of others in any one accident

Required Medical Expense or First-Party Benefits

* Automobile owners are required to purchase minimum amounts of first-party coverages that pay benefits without regard to fault. These coverages include payment of medical and hospital benefits and funeral expenses incurred within 24 months after an accident of up to $5,000 per person; 70 percent of loss of income from work during a period starting eight days after the accident, and not to exceed 52 weeks, and subject to a maximum of $140 per week; and accidental death benefits of $5,000.

Optional Insurance Coverage

* Automobile Liability Insurance Policies vs. Motor Vehicle Liability Insurance Policies
Arkansas distinguishes “automobile” policies from “motor vehicle” policies. Under Arkansas law, the definition of an “automobile” includes a car, and the definition of a “motor vehicle” includes a motorcycle. The law addresses optional coverages which must be offered to purchasers of automobile liability policies. The law does not address any legal requirements as to what optional coverages insurance companies must offer to motorcyclists. This does not mean, however, that a motorcycle owner cannot purchase optional insurance. It only means that optional insurance coverage for motorcyclists is a matter of contract law. In other words, the insurance company is free to offer or not offer optional coverage to motorcyclists.
* Uninsured (UM) and Underinsured Motorist (UIM) Coverage
Arkansas law requires insurance companies to offer UM and UIM coverage to purchasers of automobile liability insurance. UM and UIM coverages are coordinated, and a purchaser cannot buy UIM unless UM is elected. If purchased, UM and UIM must be coordinated in at least the minimum amounts required for bodily injury liability policies

Special Rules for Motorcycle Owners

* Insurance companies are not required to offer UM/UIM coverage to motorcycle owners. They are also not required to offer medical expense or first-party medical benefits to motorcycle owners.