Arkansas residents who are driving a car, SUV, truck, van or motorcycle are required to have at least the minimum level of coverage mandated by the state in place. The minimum level of liability insurance required is $25,000 for one person’s injuries and $50,000 for injuries stemming from a single accident.
Insurance companies in the state are required to report each policy they sell to the state, including the make and model of the vehicle that is covered. If a policy is canceled or a lapse in coverage occurs, the state will be notified of this development. A person who has sold a vehicle or who is no longer driving one should notify the Department of Motor Vehicles to share this information.
Drivers are required to produce proof of insurance when asked to do so by a police officer, either during a traffic stop or when an accident occurs. A driver who is not able to provide proof of coverage on request may have his or her vehicle registration revoked. To have it reinstated, proof of insurance must be produced.
The penalty for driving without insurance in Alabama is a fine of up to $250 for a first offense. Getting caught a second time without having insurance in place means higher penalties, which can be as high as a $1,000 fine and up to one year in jail.