Unless there is exclusion in your friend's policy then he should be covered under his collision coverage for the accident, even though his license was suspended at the time.

Your friend will have to contact his insurance company and find out if the terms of his policy and their internal guidelines allow his accident to be covered even though he was driving on a suspended license.

Each insurance company differs on their guidelines. It may be that his insurance was not in force because of you not having a valid license at the time of the wreck or his insurance may have a clause that allows the insurance coverage to remain in force even if the policyholder has a suspended or invalid license.

Typically, the license status at the time of a claim does not change the policy status and the claim would be paid.

As for the penalty for driving on a suspended license the penalty for this infraction can be found in the Arkansas Revised Code (ARC). Section 27-16-602 states that a driver’s license is required to operate a motor vehicle. ARC 27-16-303 is the chapter on driving while license cancelled, suspended, or revoked.

Here it states that any person whose driver's license or driving privilege as a resident or nonresident has been cancelled, suspended, or revoked as provided in this act and who drives any motor vehicle upon the highways of this state while the license or privilege is cancelled, suspended, or revoked is guilty of a misdemeanor. Upon conviction, an offender shall be punished by imprisonment for not less than two (2) days nor more than six (6) months, and there may be imposed in addition thereto a fine of not more than five hundred dollars ($500).

The office, upon receiving a record of the conviction of any person under this section upon a charge of driving a vehicle while the license of such person was suspended, shall extend the period of the suspension for an additional like period and, if the conviction was upon a charge of driving while a license was revoked, the office shall not issue a new license for an additional period of one (1) year from and after the date such person would otherwise have been entitled to apply for a new license.