On July 28, 2021, a new auto insurance law took effect in the state of Arkansas. This law, known as Act 1030, makes some significant changes to the way that auto insurance is handled in the state. If you’re an Arkansas driver, it’s important to understand these changes to make sure that you’re properly covered and in compliance with the law.
What is Act 1030?
Act 1030 is a law that was passed by the Arkansas state legislature and signed by Governor Asa Hutchinson. It makes several changes to the state’s auto insurance requirements and regulations.
One of the most significant changes is that Act 1030 raises the minimum amount of liability insurance that drivers must carry. Previously, drivers were required to carry $25,000 in bodily injury liability insurance per person and $50,000 per accident. Under the new law, those minimums have been raised to $25,000 per person and $50,000 per accident.
Additionally, Act 1030 requires that all Arkansas drivers carry uninsured motorist coverage. This coverage will help protect you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages.
Why Was Act 1030 Passed?
The goal of Act 1030 is to improve the overall safety of Arkansas roads by making sure that drivers have adequate insurance coverage. By raising the minimum liability insurance requirements and requiring uninsured motorist coverage, the state hopes to reduce the number of uninsured drivers on the road and ensure that those who are involved in accidents are able to receive proper compensation.
What Do These Changes Mean for Arkansas Drivers?
If you’re an Arkansas driver, these changes mean that you’ll need to review your current auto insurance policy to make sure that you’re in compliance with the new requirements. You may need to increase your liability coverage or add uninsured motorist coverage to your policy.
It’s also important to note that failure to comply with the new law could result in fines or other penalties. If you’re caught driving without the required insurance coverage, you could face fines of up to $250 and a suspension of your driver’s license and vehicle registration.
How Can You Get the Coverage You Need?
If you’re not sure if your current auto insurance policy meets the new requirements, it’s a good idea to contact your insurance provider. They can help you review your coverage and make any necessary changes to ensure that you’re compliant with the law.
If you don’t currently have auto insurance, now is the time to get coverage. There are many insurance providers in Arkansas that offer policies that meet the new minimum requirements.
Conclusion
Overall, the new auto insurance law in Arkansas is designed to improve road safety and ensure that drivers have adequate insurance coverage. If you’re an Arkansas driver, it’s important to review your policy to make sure that you’re in compliance with the new requirements. By doing so, you can help protect yourself and others on the road.