AR DMV AR DMV Insurance and Financial Responsibility 1 — Questions and Answers
Question 1: What is the minimum liability insurance required for a passenger vehicle in Arkansas?
- 15/30/10
- 25/50/25 (Correct answer)
- 50/100/50
- 100/300/100
Correct answer: 25/50/25
Arkansas requires minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage (25/50/25).
Question 2: What does Arkansas's mandatory insurance law require drivers to carry in their vehicle?
- Only a copy of the vehicle title
- Proof of insurance at all times (Correct answer)
- The original insurance policy document
- A bond certificate
Correct answer: Proof of insurance at all times
Arkansas law requires drivers to carry proof of current liability insurance and present it upon request by law enforcement.
Question 3: What happens to your Arkansas vehicle registration if you allow your insurance to lapse?
- Nothing until you are stopped by police
- Your registration may be suspended by the AR DMV (Correct answer)
- You receive a warning letter only
- Your license plates are automatically voided
Correct answer: Your registration may be suspended by the AR DMV
The AR DMV can suspend your vehicle registration when it receives notice that your insurance has lapsed or been cancelled.
Question 4: Which of the following satisfies the financial responsibility requirement in Arkansas besides insurance?
- A signed waiver from the vehicle lien holder
- A surety bond of at least $75,000 filed with the state (Correct answer)
- A letter from an employer
- A notarized declaration of net worth
Correct answer: A surety bond of at least $75,000 filed with the state
Arkansas accepts a surety bond of at least $75,000 filed with the State Treasurer as an alternative to standard liability insurance.
Question 5: What is the penalty for a first offense of driving without insurance in Arkansas?
- Warning and 30-day grace period
- Fine up to $1,000 and/or up to 1 year in jail (Correct answer)
- Automatic 6-month license suspension only
- $250 fine, no other penalty
Correct answer: Fine up to $1,000 and/or up to 1 year in jail
A first offense of driving uninsured in Arkansas is a misdemeanor punishable by a fine up to $1,000 and/or up to one year in jail.
Question 6: In Arkansas, what does 'uninsured motorist coverage' protect you from?
- Damage you cause to others
- Damage to your vehicle from weather events
- Injuries and damages caused by a driver who has no insurance (Correct answer)
- Medical costs for your passengers only
Correct answer: Injuries and damages caused by a driver who has no insurance
Uninsured motorist coverage pays for your injuries and damages when the at-fault driver carries no liability insurance.
AR DMV AR DMV Insurance and Financial Responsibility 1
What is the minimum liability insurance required for a passenger vehicle in Arkansas?