Arkansas's Uninsured Motorist Law and What It Means for Your Claim

Arkansas law requires every auto insurance policy to include uninsured motorist coverage unless you actively reject it in writing. This coverage pays your medical bills, lost wages, and pain and suffering if another driver causes a crash and has no insurance. The law exists because roughly one in eight drivers on Arkansas roads carry no insurance at all, and the state wants you protected even when the other driver cannot pay.

The coverage is mandatory—your insurer cannot straightforward leave it off your policy. You have to sign a form saying you do not want it. Most people keep it because the cost is low and the protection is real. If you are hit by an uninsured driver, your own policy steps in and covers you the same way it would if you had hit someone else.

Arkansas sets a minimum limit for uninsured motorist coverage: $25,000 per person and $50,000 per crash. That means if you are injured, your policy will pay up to $25,000 for your claim. If multiple people are hurt in the same crash, the total across all of them cannot exceed $50,000. You can buy higher limits if you want more protection, and many people do.

Key Takeaways

  • Arkansas requires uninsured motorist coverage on every policy unless you sign a written rejection form.
  • The minimum coverage is $25,000 per person and $50,000 per crash, but you can purchase higher limits.
  • Your own insurer pays your claim under this coverage, not the other driver's insurer.
  • You must report the crash to your insurer and provide proof that the other driver was uninsured.
  • If the other driver is later found to have insurance, your claim may be denied or reduced.

How Uninsured Motorist Coverage Works in Arkansas

When another driver hits you and has no insurance, you file a claim with your own insurance company under the uninsured motorist section of your policy. Your insurer investigates to confirm the other driver truly has no coverage. This usually means checking the state's insurance database and requesting proof from the other driver's insurance company.

Your insurer will then pay for your medical treatment, vehicle repair (if you also have collision coverage), lost income while you recover, and compensation for pain and suffering—up to your policy limit. The process is similar to a liability claim, except your own company is paying instead of the other driver's company.

One important rule: you cannot collect twice. If you have both uninsured motorist coverage and collision coverage, your insurer will coordinate the payments so you receive the full amount owed but not more. For example, if your medical bills are $15,000 and your car damage is $8,000, your uninsured motorist coverage pays the medical bills first, then collision coverage covers the car damage.

What Counts as "Uninsured" Under Arkansas Law

Arkansas treats several situations as uninsured. The most obvious is a driver with no policy at all. But the law also covers hit-and-run crashes—when the other driver leaves the scene and you cannot identify them. In that case, your uninsured motorist coverage pays even though you never learned whether the driver had insurance.

The law also covers drivers whose insurance company becomes insolvent and cannot pay claims. This is rare but does happen. If an insurance company fails and goes out of business, your uninsured motorist coverage steps in for any claims that company would have paid.

One situation that does not count: a driver with insurance but limits too low to cover your damages. If the other driver has $10,000 in liability coverage and your damages are $30,000, their insurance pays $10,000 and you are responsible for the rest—unless you have underinsured motorist coverage, which is a separate add-on. Arkansas does not require underinsured coverage, but many insurers offer it.

Proving the Other Driver Was Uninsured

Your insurer will not straightforward take your word that the other driver had no insurance. You need to provide evidence. The police report from the crash is the first document—it often includes the other driver's insurance information if they provided it at the scene. If the report shows no insurance listed, that is a strong start.

Your insurer will also request a certified statement from the other driver's insurance company confirming they have no record of a policy. Arkansas allows insurers to check the state's database directly, so your company can often obtain this proof without your involvement. If the other driver claims they had insurance but cannot produce a policy number or company name, your insurer will contact those companies to verify.

If the other driver refuses to cooperate or cannot be located, the burden shifts slightly. You will need to show that you made a reasonable effort to identify them and their insurance. In hit-and-run cases, a police report documenting that the driver left the scene is usually sufficient proof.

The Written Rejection Form and Waiving Coverage

Arkansas law allows you to reject uninsured motorist coverage, but only if you do so in writing. Your insurer must provide you with a form that explains what you are giving up. straightforward telling an agent you do not want the coverage does not count—it has to be on paper and signed by you.

The form must be clear about the consequences. It should explain that if you are hit by an uninsured driver, you will have no coverage under your policy and will have to pursue the other driver in court for payment. Most people do not reject this coverage because it is inexpensive and the risk is real.

If you have a loan or lease on your vehicle, your lender may require you to keep uninsured motorist coverage as a condition of the loan. In that case, you cannot waive it without the lender's permission. Check your loan documents to see if this applies to you.

Filing a Claim and What to Expect

Report the crash to your insurer as soon as possible, ideally within 24 hours. Provide the police report number, the other driver's name and contact information, and a description of how the crash happened. Tell your insurer that you believe the other driver was uninsured.

Your insurer will assign a claims adjuster to investigate. The adjuster will contact the other driver's insurance company to confirm they have no policy. They will also review the police report, medical records, repair estimates, and any other documentation you provide. This investigation typically takes one to three weeks.

Once the investigation is complete, your adjuster will make a decision. If the other driver is confirmed uninsured, your claim will be approved and you will receive payment according to your policy limits. If the other driver is found to have insurance after all, your claim will be denied and you will be directed to file with their company instead.

Disputes and What Happens If Your Claim Is Denied

Sometimes your insurer and the other driver's insurer disagree about whether the other driver was actually uninsured. For example, the other driver might claim they had a policy that lapsed, or they might have had coverage that was cancelled for non-payment. Your insurer has the right to investigate these claims.

If your insurer denies your uninsured motorist claim, you have the right to appeal. Arkansas law requires your insurer to provide a written explanation of why the claim was denied. You can then request a review or file a complaint with the Arkansas Insurance Commissioner if you believe the denial was unfair.

In some cases, you may also have the right to pursue the other driver in civil court. If you can prove they caused the crash and have no insurance, you can sue them for damages. However, collecting a judgment from an uninsured driver is often difficult because they have no assets or income to seize. This is why uninsured motorist coverage exists—it protects you when the other driver cannot pay.

Frequently Asked Questions

Can I reject uninsured motorist coverage and then buy it back later?

Yes. If you signed a rejection form, you can contact your insurer and ask to add uninsured motorist coverage back to your policy. Your insurer may require a new process or underwriting, but there is no legal barrier to reinstating it. The coverage will take effect on the date your insurer approves it, not retroactively.

What if the other driver was insured but their company denies the claim?

That is not an uninsured motorist situation. If the other driver had insurance but their company wrongfully denies your claim, you would need to pursue that company directly or file a complaint with the Insurance Commissioner. Your uninsured motorist coverage does not explore because the other driver was insured.

Does uninsured motorist coverage pay for my rental car while mine is being repaired?

Only if your policy includes rental reimbursement coverage. Uninsured motorist coverage pays for medical expenses and pain and suffering, not for rental cars. Rental coverage is a separate add-on that you purchase. Check your policy declarations page to see if you have it.

If I am partially at fault for the crash, can I still use uninsured motorist coverage?

Yes, but your payment will be reduced by your percentage of fault. Arkansas follows a comparative fault rule. If you are 20 percent at fault and your damages are $10,000, your insurer will pay $8,000. The other driver's lack of insurance does not change this calculation.

What if the other driver is a family member living in my household?

Uninsured motorist coverage typically does not explore to crashes involving family members who live with you, because they are usually covered under your own policy. Check your policy language or call your insurer to confirm. The rules vary depending on whether the family member is a named insured on your policy.