Car insurance in Arkansas (25/50/25)
- Minimum car insuranceArkansas requires at least $25,000 bodily injury liability per person, $50,000 per accident and $25,000 property damage liability. Insurers must offer personal injury protection and uninsured motorist coverage, and you have to reject them in writing if you don't want them. Liability is the only coverage the law requires. Source
- Fault systemArkansas is an at-fault (tort) state with no limits on lawsuits. PIP that pays your own medical bills regardless of fault is offered as an optional add-on. Source
Business insurance rules in Arkansas
- Workers’ compensationMost Arkansas employers with three or more employees must carry workers' comp. Construction has lower thresholds: two or more employees doing building or repair work, or even one employee if the contractor subcontracts any part of the job or is itself a subcontractor. Coverage comes from private insurers or self-insurance, not a state fund. Source
- Contractor licensingThe Arkansas Contractors Licensing Board, part of the Department of Labor and Licensing, issues commercial licenses for jobs of $50,000 or more. Commercial applicants must file a financial statement reviewed by a CPA, and any applicant with employees must show proof of workers' comp. Residential builders and home improvement contractors are licensed through the board's Residential Contractors Committee for jobs over $2,000. Source
Home insurance in Arkansas
- Home insurer of last resortState law requires every licensed property insurer to belong to the Arkansas Rural Risk Underwriting Association. The association provides a property insurance plan for insurable risks in areas designated as rural that can't get coverage through normal channels. Source
Disasters, floods, hail, tornadoes and earthquakes in Arkansas
| Measure | Arkansas | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 40 | #15 of 51 | Most often for severe storm (27), severe ice storm (4), tornado (4). Jackson County has been in 17 of them. |
| National Flood Insurance Program claims, 2005–2025 | 5,991 | #24 of 51 | $185.9 million paid; 30% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Homes in high-risk flood zones with a federal flood policy | 14% | #44 of 50 | 5,651 policies for 40,410 homes in the counties FEMA can measure; US: 40%. |
| Hail reports, 2016–2025 | 2,011 | #13 of 51 | 208 of them 2 inches or larger. Largest stone 5 inches, Polk County, June 2019. |
| Tornadoes, 2016–2025 | 390 | #15 of 51 | 65 rated EF2 or stronger; 2,146 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 7 | #16 of 51 | Largest: magnitude 4.7, 4 km NE of Greenbrier, Arkansas, February 28, 2011. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
Look up the storm history of any county in Arkansas.
The property risks that matter in Arkansas
Northeast Arkansas lies within the New Madrid Seismic Zone, so earthquake coverage deserves a look even far from the West Coast.
Tornado and straight-line wind damage is generally covered by homeowners policies as windstorm, but many Arkansas policies now apply a separate wind/hail deductible. Know the dollar amount before spring storm season.
Hail is one of the most frequent property claims in Arkansas. Read how your policy settles roof claims: some pay replacement cost, others pay actual cash value on roofs past a certain age, and cosmetic-damage exclusions are increasingly common. Impact-resistant (Class 4) shingles may earn a discount.
Flooding is the most common U.S. natural disaster, and it is excluded from regular home policies. Arkansas residents outside high-risk zones can often buy NFIP or private flood coverage at lower cost; remember the typical 30-day waiting period.
Arkansas has meaningful seismic exposure, but earthquake coverage must be added separately. Older unreinforced masonry and homes with raised foundations are most vulnerable; ask about retrofit credits.
Arkansas coverage checkup
- Compare your auto liability limits with the Arkansas minimum of 25/50/25 and with your actual assets.
- Confirm whether your wind/hail deductible is a flat amount or a percentage.
- Read the roof settlement clause and ask whether Class 4 impact-resistant shingles earn a credit.
- Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
- Get an earthquake quote and compare the percentage deductible in dollars.
- Keep a current home inventory stored off-site.
Arkansas’s insurance regulator
Insurance in Arkansas is regulated by the Arkansas Insurance Department, which handles consumer complaints and licenses insurers and agents.
Sam Alishahi holds an Arkansas nonresident insurance producer license (NPN 21022298) and places Arkansas policies directly.
Common questions
What is the minimum car insurance in Arkansas?
Arkansas requires at least $25,000 bodily injury liability per person, $50,000 per accident and $25,000 property damage liability. Insurers must offer personal injury protection and uninsured motorist coverage, and you have to reject them in writing if you don't want them. Liability is the only coverage the law requires.
Is Arkansas a no-fault state?
Arkansas is an at-fault (tort) state with no limits on lawsuits. PIP that pays your own medical bills regardless of fault is offered as an optional add-on.
Do employers in Arkansas need workers’ comp?
Most Arkansas employers with three or more employees must carry workers' comp. Construction has lower thresholds: two or more employees doing building or repair work, or even one employee if the contractor subcontracts any part of the job or is itself a subcontractor. Coverage comes from private insurers or self-insurance, not a state fund.
What can an Arkansas homeowner do if no insurer will write the house?
State law requires every licensed property insurer to belong to the Arkansas Rural Risk Underwriting Association. The association provides a property insurance plan for insurable risks in areas designated as rural that can't get coverage through normal channels.
Are tornadoes covered by homeowners insurance in Arkansas?
Yes, as windstorm damage, subject to your deductible, which may be a separate wind/hail deductible.
Will my Arkansas policy pay to replace a hail-damaged roof?
It depends on the roof settlement terms. Some policies pay replacement cost; others pay actual cash value on older roofs or exclude cosmetic damage.
More answers: Arkansas homeowners insurance guide Arkansas renters insurance and security deposit guide Arkansas life insurance consumer guide Arkansas flood risk and NFIP guide Little Rock home and auto insurance guide
Sources
- Arkansas: Minimum car insurance
- Arkansas: Fault system
- Arkansas: Workers’ compensation
- Arkansas: Home insurer of last resort
- Arkansas: Contractor licensing
- Arkansas: insurance regulator
- NAIC: directory of state insurance departments
General information as of October 2026, not legal advice; confirm current rules with the agency.