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- Is Arkansas a No-Fault State?
Written by William Harris
Fact Checked by Abigail Anderson
Last Updated May 07,2024
Ensuring road safety is an essential component of public policy, aimed at reducing the number of vehicle accidents and saving lives. By implementing strict regulations and encouraging responsible driving behavior, we can lessen the effect of these unfortunate mishaps.
In addition to providing financial protection, auto insurance laws play a crucial role in promoting safety on the roads. While each state in the US has unique auto insurance laws, their collective intention is to promote a safer driving environment.
This article focuses on the auto insurance regulations in Arkansas, offering readers a comprehensive understanding of how these laws contribute to road safety and what they mean for Arkansas residents.
No-fault insurance is a type of car insurance policy that requires drivers to file a claim with their own insurance company for medical expenses and lost income after an accident, regardless of who was at fault. Some US states have adopted no-fault insurance laws to streamline the process of paying out claims and reduce the burden on the court system.
In these states, drivers are required to carry a minimum amount of personal injury protection (PIP) coverage as part of their auto insurance policies. This coverage ensures that, in the event of an accident, a driver's medical expenses, lost wages, and other related costs are promptly covered up to the limit of the policy, without the need to establish fault.
It is worth noting that no-fault insurance laws vary from state to state, with each jurisdiction setting its own rules for coverage limits, types of expenses covered, and procedures for filing claims. As of right now, there are 12 states in the US that have implemented a true no-fault insurance system.
Arkansas is not one of the states that adhere to the no-fault insurance model. Instead, it operates under a traditional "at-fault" or "tort" system for car accidents and insurance claims. Under this system, the driver who is found to be at fault for an accident is responsible for paying the damages resulting from that accident.
The Arkansas auto insurance laws are outlined in § 27-22-104 of the Arkansas Code, which sets forth the requirements for motor vehicle liability insurance within the state. According to this statute, operating a motor vehicle without both the vehicle and the driver being insured by an authorized provider or self-insured is illegal in the state.
Furthermore, Section B of the same statute defines the minimum liability coverage amounts required by law for all drivers. These include coverage for bodily injury per person, total bodily injury per accident, and property damage per accident, ensuring that in the event of an accident, there are sufficient funds available to cover the damages for which the at-fault driver is responsible.
In the at-fault insurance system adopted by Arkansas, the injured party has the right to file a claim against the at-fault driver's insurance company and seek just compensation. This approach contrasts with no-fault systems, where each party typically files a claim with their own insurance, regardless of who is at fault.
It is a system that aims to ensure that those injured in car accidents are fairly compensated for their losses while holding responsible drivers accountable for their actions.
Arkansas has made significant strides in reducing the rate of uninsured motorists, demonstrating the effectiveness of its new real-time insurance monitoring system. Since the deployment of this system in 2020, the state has witnessed a dramatic decline in the number of uninsured drivers, from 16% in early 2020 to 8.7% in 2023. [ArkansasAdvocate]
As previously noted, in Arkansas, drivers are required by law to carry minimum liability insurance to cover potential damages in the event of an accident.
Specifically, the state mandates that drivers must have insurance coverage that includes at least $25,000 for bodily injury per person, $50,000 for total bodily injury per accident when multiple people are injured, and $25,000 for property damage per accident. [InsuranceArkasasGov]
These figures are designed to ensure that, in the case of an accident, there are adequate funds available to cover the immediate costs for which the at-fault driver is responsible.
It's important for drivers to understand that these amounts are the minimum requirements and may not fully cover all expenses if the damages exceed these limits. In such cases, the at-fault driver may be personally liable for any amounts that exceed their insurance coverage.
This could lead to significant financial hardship, especially if the accident results in extensive property damage or serious injuries. Therefore, drivers often opt for higher coverage limits than the state-mandated minimums to protect themselves against potential out-of-pocket expenses.
To better understand exactly how the at-fault insurance system in Arkansas works, let's imagine a hypothetical scenario of a road incident and see how the laws apply in this context.
Suppose two motorists, Sarah and John, were involved in a collision in Arkansas because Sarah was texting while driving and did not notice a stop sign. Sarah's car swerved and hit John's, resulting in significant damage to John's vehicle and causing him minor physical injuries.
As Arkansas is an at-fault state, determining who is responsible for the accident is critical in deciding who covers the damages and injuries. In this case, Sarah’s distraction due to texting while driving is the primary cause of the accident, establishing her as the at-fault party based on evidence and eyewitness accounts.
After the incident, John, as the victim, would initiate a claim against Sarah's insurance provider to cover his car's repairs and his medical costs. This process involves him providing evidence of the accident's consequences, including vehicle repair quotes and medical expense receipts.
Upon receiving the claim, Sarah’s insurance company would evaluate the provided evidence to ascertain the extent of damages and injuries. Their responsibility is to assess the total costs incurred due to the accident and confirm these expenses against the coverage outlined in Sarah's insurance policy.
Sarah’s insurance will cover the damages and medical expenses up to the limit of her policy. Once her liability is established, her insurer will make payments to address John's vehicle repair costs and medical bills.
Should the expenses exceed the limits of Sarah’s insurance coverage, John might have to rely on his own underinsured motorist policy, consider legal action against Sarah for additional compensation, or utilize his own collision or health insurance to cover the financial discrepancy.
In the scenario described above, Sarah appears to be the primary cause of the accident, leading to a seemingly straightforward case of fault. However, accidents in real life often involve complexities that can implicate all parties involved to varying degrees. This is why Arkansas employs the concept of comparative negligence to ensure fairness in such cases.
Under the legal framework provided by § 16-64-122 of the Arkansas Code, when an accident occurs, the fault and subsequent compensation are proportionately assigned based on each party's contribution to the incident. [Justia]
Consider the scenario with Sarah and John again: though Sarah's failure to stop is the clear immediate cause, suppose an investigation reveals that John was also exceeding the speed limit at the time of the collision. In this case, if John is found to be 20% responsible for the incident due to his speeding, Arkansas's approach to comparative negligence would reduce his compensation accordingly.
Therefore, if John incurred $10,000 in total damages, his award would be adjusted down by 20%, resulting in an $8,000 payout. This law ensures that the compensation each party receives is fair and proportional to their involvement in the accident.
Like any other system, Arkansas's at-fault system for auto insurance has its own set of pros and cons, reflecting a balance between accountability and coverage complexity:
Overall, the at-fault insurance system in Arkansas strives to maintain fairness while promoting safety on the roads by holding negligent drivers accountable for their actions.
Navigating the aftermath of a car accident in Arkansas can be overwhelming, especially when dealing with personal injuries. If you find yourself in such a situation and need assistance with filing your personal injury claim, feel free to follow our simple step-by-step guide:
It's crucial to hire a personal injury specialist or lawyer as they are well-versed in the laws and procedures specific to Arkansas. Seasoned Arkansas personal injury lawyers can navigate the legal system efficiently, negotiate better compensation on your behalf, and ensure your rights are fully protected throughout the process.
If you are found at fault in a car accident, in Arkansas, your insurance premiums may increase. This is because insurers view at-fault drivers as higher risks. The exact increase depends on your insurer's policies and the details of the accident.
If involved in an accident in Arkansas, ensure safety, call emergency services, exchange driver information, document the scene, notify your insurer, and consult Arkansas car accident lawyers if there's a fault dispute.
No, Arkansas is an at-fault state, meaning that no-fault insurance is not available. In Arkansas, the driver who caused the accident is responsible for covering damages and injuries through their insurance.
As of now, there are no announced changes to the at-fault laws in Arkansas for the coming year.
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