New state auto insurance law takes effect in Arkansas

Updated: Jan. 10, 2020 at 6:20 AM CST
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LITTLE ROCK, Ark. (KAIT/KARK) - A new state law that took effect at the first of the year will have an impact on all drivers in the state, with officials saying they are hopeful the new rules will also have a positive impact on insurance rates.

According to a report from content partner KARK, the new law requires that all drivers in the state have vehicle insurance.

The law covers only motorcycles and motor vehicles. If a driver does not have insurance, state officials will send the driver a letter telling them they have 30 days to get insurance or their registration on the vehicle will be suspended.

After that, it will cost $100 to have the registration reinstated, KARK reported.

The law also creates a system to allow law enforcement to check the insurance status of drivers in real time, plus will let officials know if the insurance was bought or has lapsed.

According to officials with the Arkansas Department of Finance and Administration, nearly 400,000 of the nearly 2.9 million vehicles in the state are not insured.

Scott Hardin, a spokesman with DFA, said the new law aims to help address the issue.

“The hope of this program is you see that number drop, you see that number of uninsured motorists across the state drop, which ultimately over a time period could result in lower rates for all of us,” Hardin told KARK.

The state department will be sending letters to motorists, starting in early February.

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