Arkansas is the southern US state that is also known for an abundant park. Earlier the vehicle insurance in the state was not much important. But after the implementation of the new law, it became mandatory for car owners in Arkansas to have a car insurance policy. The new law on auto insurance came into effect from January 1 on all the state vehicles.
Initially, Arkansas is simply warning the vehicle owners to have an auto insurance policy. If the drivers do not have insurance, then the state will send them a letter that will ask them to have an auto insurance within 30 days.
Those who will fail to get an auto insurance even after 30 days, can be suspended by the state authority. They have to pay $100 to regenerate the vehicle registration. The new law has also allowed making of a system that will allow the state to check the real-time status of the vehicle owners about insurance purchases.
The new system will also show the active and lapsed status of the auto insurance policy. According to the state department of finance, there are almost 2.9 million vehicles in the state. Out of them, 400,000 vehicles do not have any auto insurance policy.
The new rule implementation will help the state to curb these figures. KJ VanDerwerken is an experienced insurance agent who has wide knowledge about the different kinds of auto insurance policies and real estate investing. And according to him, there are many benefits of having an insurance policy for a vehicle. The insurance policy provides financial claims not only to the vehicles but also to the vehicle owners.
Now the auto insurance policies are also allowing to file a lawsuit against the responsible people for vehicle damage.