Why Arkansas Repealed — and Then Reinstated — Proof of Insurance for Vehicle Registration
Did you know Arkansas once allowed drivers to register vehicles without showing proof of insurance? Back in 1991, the state passed a short-lived law that aimed to simplify registration—but it came with some serious side effects. This post walks through the timeline of what happened, why the law was repealed, and how Arkansas enforces insurance today.
Timeline of Arkansas Car Insurance Enforcement
- Before 1991: Proof of insurance was required at registration under Ark. Code § 27-13-102(a).
- April 1, 1991: House Bill 1068 took effect, removing the requirement to show insurance at registration. Enforcement shifted to law enforcement officers.
- Mid–Late 1990s: Lawmakers began reversing course after compliance issues and a rise in uninsured drivers.
- 2001: Act 1500 created the framework for a real-time insurance verification pilot program.
- 2003–2007: Arkansas phased in statewide electronic insurance monitoring through the Office of Motor Vehicle and state police.
- 2011: The MLI (Minimum Liability Insurance) system went live, enabling automatic registration suspensions for lapsed coverage.
- 2020s: Arkansas continues real-time tracking. Suspensions are automatically triggered for uninsured vehicles, with fines and reinstatement fees applied.
Why the 1991 Law Removed Proof of Insurance
House Bill 1068, passed during the 78th General Assembly, was designed to fix a very real problem: Arkansans were frustrated with long, confusing DMV procedures. At the time, proof of insurance was a paper-based requirement that slowed down registration lines statewide.
Lawmakers believed that law enforcement officers were better positioned to enforce insurance laws. So, HB 1068 removed insurance verification from the registration process and increased fines for uninsured drivers caught on the road.
Why It Was Reversed
The fix didn’t last. After a few years, it became clear that many drivers were skipping insurance entirely and still registering their vehicles. There was no efficient way to verify coverage in real time, and law enforcement couldn’t catch everyone.
As the number of uninsured vehicles grew, Arkansas lawmakers began reinstating the insurance requirement and laying the groundwork for digital verification.
✅ What Arkansas Uses Today: Real-Time Insurance Monitoring
Arkansas now uses an electronic system known as the MLI program (Minimum Liability Insurance). It allows the state to:
- Check insurance status electronically — instantly
- Automatically send warning letters if a lapse is detected
- Issue suspension notices after 30 days of no coverage
- Require reinstatement fees to re-activate suspended registration
In short: you don’t need to show insurance just at registration—you must stay insured year-round, or your vehicle could be flagged and suspended by the state.
What This Means for Drivers
- Always keep your policy active. Even short lapses can trigger suspension letters.
- Check your mail. Arkansas mails warnings before taking enforcement action.
- Know your penalties. Fines increase if you’re caught driving uninsured, and you may face reinstatement costs on top of tickets.
Check Arkansas Car Insurance Requirements 2025
Frequently Asked Questions
Is car insurance required to register a vehicle in Arkansas?
Yes. As of today, Arkansas requires proof of liability insurance when registering a vehicle and also monitors ongoing coverage through a real-time electronic system.
What did House Bill 1068 do in 1991?
HB 1068 temporarily removed the requirement to show insurance during vehicle registration in Arkansas. It increased penalties for uninsured driving but ultimately led to higher uninsured rates and was reversed within a few years.
When did Arkansas start tracking insurance electronically?
Arkansas began piloting electronic insurance verification in 2001, with full implementation occurring between 2003 and 2007. The MLI system officially launched in 2011 and has expanded since.
What happens if I let my insurance lapse in Arkansas?
Your registration can be suspended, and you’ll receive a notice from the state. To lift the suspension, you’ll need to show active coverage and pay a reinstatement fee.
Disclaimer: This post is for informational purposes only and reflects our understanding of Arkansas laws as of 2025. Always consult official state sources or legal counsel for the most current regulations.