All car owners must have liability coverage. Liability coverage pays for any claim in which you are at fault for an accident. After a car accident in a no-fault state, you must use the personal injury protection coverage of your own auto insurance policy to pay for medical bills and other losses out of pocket, regardless of who caused the accident. Not having car insurance in many states can make you a high-risk driver when buying car insurance.
In some states, your vehicle can be towed and you won't be able to claim it until you present proof of insurance. This means that the person who was at fault for causing the car accident is also responsible for any resulting damage (from a practical point of view, the at-fault driver's insurance company will absorb these losses, up to the limits of the policy). Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs. For example, personal injury protection (PIP) or MedPay coverage can be used to pay medical bills for a car accident (this coverage is optional in Arkansas), and collision coverage (also optional in Arkansas) can pay for repairs (or replacement) of your damaged vehicle after a car accident.
The terms, definitions and explanations of insurance are for informational purposes only and do not replace or modify in any way the definitions and information contained in the individual pages of contracts, policies or insurance statements, which are decisive. If you can't drive your car because of a covered loss, this coverage helps pay for a car rental or other transportation expenses so you can get back on the road. The consequences of driving without insurance exceed the monthly insurance premium and may result in the following penalties.
