Liability Insurance — Arkansas
Liability insurance pays for damage and injuries you cause to others in an at-fault accident — it does not cover your own vehicle or medical bills.
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What Is Liability Insurance Insurance?
Liability insurance covers bodily injury and property damage you cause to others when you're at fault in an accident. It pays the other driver's medical bills, lost wages, vehicle repairs, and legal defense costs up to your policy limits. Arkansas law splits liability into three parts: bodily injury per person, bodily injury per accident, and property damage per accident.
Who Needs Liability Insurance Insurance?
You must carry liability insurance if your Arkansas license is suspended and you plan to drive under a hardship or restricted license, or if the state requires continuous coverage as a reinstatement condition even while you're not driving. Most DUI, excessive points, and insurance-lapse suspensions require proof of continuous liability coverage starting from your suspension date, not just when you apply for reinstatement. If you don't own a vehicle, a non-owner liability policy satisfies Arkansas reinstatement requirements and costs significantly less than a standard policy.
Check your suspension notice for the phrase 'proof of insurance required' or 'SR-22 filing required.' If either appears, you need liability insurance immediately and must maintain it without lapse until your reinstatement is complete and any SR-22 period ends. If you don't own a vehicle, request a non-owner policy — it's cheaper and fulfills the same legal requirement. If your notice does not mention insurance and you're not driving, call the DFA at 501-682-7060 to confirm whether continuous coverage affects your reinstatement timeline before buying a policy you may not need.
