What Happens If the Person at Fault in an Accident Has No Insurance in Arkansas?

Arkansas follows a traditional at-fault (tort) auto liability system, where the driver who causes an accident is legally responsible for compensating the injured parties for damages. The at-fault driver's liability insurance typically pays medical bills, vehicle repairs, and lost wages. However, when the driver lacks insurance, the legal and financial consequences become significantly more severe.

Driving without insurance in Arkansas violates state law and carries penalties under Arkansas traffic violations and infractions. These include fines, possible jail time, suspension of vehicle registration, and administrative fees. More critically, uninsured at-fault drivers are personally liable for all damages resulting from the accident. If they cannot pay, the injured party may file a civil lawsuit against them. If the court awards a judgment, it can result in long-term financial repercussions such as wage garnishment, liens on property, or seizure of assets.

The absence of insurance on the part of the at-fault driver makes compensation more challenging for the accident victim. If the victim carries uninsured motorist (UM) coverage, their insurance policy may help offset the financial losses. Without UM coverage, pursuing a legal claim against the uninsured driver may be the only option. This effort is not always successful if the defendant lacks sufficient assets to satisfy a judgment.

Is It Illegal To Drive Without Insurance In Arkansas?

Per A.C.A. § 27-22-104 (a) (1), it is illegal to drive a motor vehicle within Arkansas unless the motor vehicle and the person are covered by an insurance policy or a certificate of self-insurance under A.C.A. § 27-19-107. Anyone who violates this will be subject to the following penalties (A.C.A. § 27-22-103):

• Motor vehicle registration suspensions
• A fee of $20 for reinstatement of registration
• First offenders will be subject to a mandatory fine between $100 and $250
• Second offenders will be fined no less than $250 or no more than $500
• Third and subsequent offenders must pay a minimum fine of $500 and a maximum fine of $1,000 or be sentenced to 1 year in jail, or both.

What Is the Minimum Insurance Requirement in Arkansas?

Per A.C.A. § 27-22-104(b), the minimum insurance requirement in Arkansas includes:

• $25,000 for bodily injury or death of one person in a single accident
• $50,000 for death or bodily injury of two or more persons in a single accident
• $25,000 for property damage per accident.

In addition to this mandatory liability coverage, Arkansas law requires insurers to offer Uninsured/Underinsured Motorist (UM/UIM) and Medical Payments (MedPay) coverage. However, these are not mandatory. Drivers may decline them in writing if they choose not to include these coverages in their policy.

What To Do After A Car Accident With an Uninsured Driver in Arkansas

Arkansas drivers find it frustrating to be in an accident with an uninsured driver. Their frustrations can be reduced if they seek compensation through the steps below:

• Step 1: Report the accident: If the accident involves injury, death, or property damage over $1,000, the not-at-fault driver should report the accident to the police as required by law.
• Step 2: Notify Insurance Company: After reporting the accident to the police, the victim should notify their insurance provider of the incident. The victim's Uninsured Motorist (UM) coverage will be used to pay for their medical bills and vehicle repairs if they have one.
• Step 3: Exchange Information and Document the Scene: The victim should try to collect the at-fault driver's personal information and vehicle details. Afterward, take pictures of the accident scene, the damaged vehicle, and any visible injuries for evidence. Also, gather contact information from any witnesses.
• Step 4: Complete and Submit DMV Form SR-1: Arkansas law requires drivers involved in a crash to email an Accident Report (Form SR-1) to the Department of Finance and Administration (DFA) within ten days if the accident caused injury, death, or property damage of over $1,000.
• Step 5: Keep Detailed Records and Consider Legal Options: Keep records of all expenses relating to the accident, including medical treatment and repair bills. The victim can use these records as evidence when suing the uninsured driver to recover their damages.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

An uninsured driver involved in an accident where the other driver is at fault can still file a claim against the at-fault driver. In Arkansas, at-fault drivers are legally liable for injuries and property damage they cause. However, their lack of an auto insurance policy can affect the driver's claim. Per A.C.A. § 27-19-503, a driver who is uninsured at the time of the accident, even if they are not at fault, will be penalized.

Can I Sue an Uninsured Driver in Arkansas?

Yes, a person can sue an uninsured at-fault driver in Arkansas. Although state law (Arkansas Code § 27-19-605) requires all drivers to carry liability insurance, a driver's lack of coverage does not prevent someone from filing a civil lawsuit for damages. If the claim is under $5,000, they can file in small claims court, offering a faster, more informal process without requiring a lawyer. For claims over $5,000, victims must file in circuit court, where they can also seek compensation for pain and suffering. If the victim has uninsured motorist (UM) coverage, they can recover through their own insurance first. Remember that even if the victim wins in court, collecting damages from an uninsured driver can be challenging if they cannot pay.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Arkansas?

Yes. Depending on a driver's policy, their insurance may cover them if the at-fault driver is uninsured. Those carrying Uninsured Motorist (UM) coverage under A.C.A. § 23-89-403 can pay for medical bills, lost wages, and other costs. Uninsured Motorist Property Damage (UMPD), offered under A.C.A.§ 23-89-404, covers vehicle repairs when an uninsured driver causes the damage. It includes a $200 deductible and cannot exceed the driver's property damage liability limit. Though optional, medical Payments (MedPay) can cover immediate medical expenses regardless of fault, while collision coverage can pay for damage to the vehicle, even if the other driver has no insurance.

What Is Uninsured Motorist Coverage in Arkansas?

Uninsured/Underinsured Motorist (UM/UIM) coverage in Arkansas protects insured drivers injured by someone with insufficient insurance. It helps cover medical bills, lost wages, and other damages when the at-fault driver can not fully compensate the victim (A.C.A. §§ 23-89-403, 23-89-209).

UM applies in hit-and-run cases or when the other driver has no liability insurance. UIM applies when the other driver's insurance is too low to cover the damages. In such cases, the victim's policy can cover the difference. While UM/UIM coverage is not mandatory by Arkansas Law, insurers must offer it, and policyholders can reject it in writing. If accepted, coverage limits usually match the driver's liability limits unless they choose lower ones.

What If I Don't Have Uninsured Motorist Coverage in Arkansas?

A driver without Uninsured Motorist (UM) coverage in Arkansas who is involved in an accident with an uninsured or underinsured driver can still have some alternative routes to seek compensation. They can file a civil lawsuit against the driver to recover damages. However, this can be time-consuming and costly, and the at-fault uninsured driver may not have sufficient assets to pay a judgment. If the driver wins the judgment against the at-fault driver but the at-fault driver refuses to pay for the damages, Arkansas law allows the driver to request the suspension of their driver's license until the judgment is satisfied.

If the accident involves a hit-and-run or an uninsured DUI driver, the not-at-fault driver may be eligible to apply for compensation from the state's victim compensation fund. The application should be made to the Arkansas Crime Victims Reparations Board to cover medical expenses, lost wages, and other costs. The not-at-fault driver can also use their own health insurance or collision coverage to cover some medical costs or vehicle repairs regardless of fault.

How Do I Get Compensation from an Uninsured Driver in Arkansas?

Drivers who want to get compensation from an uninsured driver in Arkansas must file a civil lawsuit. The lawsuit can be filed in a small claims court if the amount of damage does not exceed $5,000 or in a circuit court if the claim is larger and there is no damage cap. The lawsuit process begins with filing a complaint at the appropriate court. The court clerk issues a summons, which must be served on the defendant according to Arkansas Rule of Civil Procedure 4. The defendant must respond to the summons within 30 days for the case to move into discovery, where both sides exchange evidence and information under Rules 26–37. However, failure to respond can cause the plaintiff to request a default judgment under Rule 55. If the case proceeds, it may go to trial, where the plaintiff must prove the uninsured driver was at fault and caused their losses. If the plaintiff wins the case, the judgment accrues post-judgment interest at the Federal Reserve primary credit rate plus 2%, as outlined in Ark. Code § 16-65-114. However, collecting from an uninsured driver may require further action, such as wage garnishment or property liens, and will depend on the driver's financial situation.

How Much Can You Recover From an Uninsured At-Fault Driver in Arkansas?

A person can recover damages from an uninsured at-fault driver in Arkansas, but the amount they actually collect depends on the driver's ability to pay. Arkansas law allows the injured party to sue for full compensation, like medical bills, property damage, lost wages, and pain and suffering. In small claims court, the maximum recovery is $5,000. For higher amounts, the case must be filed in the circuit court, where there is no cap on damages. If the injured party wins the case, the judgment can accrue post-judgment interest at a rate equal to the Federal Reserve primary credit rate plus 2%, not exceeding the constitutional maximum, as outlined in Ark. Code § 16-65-114. However, collecting the judgment may be difficult if the uninsured driver has limited income or assets.

How To Find Out If the At-Fault Driver Has Insurance in Arkansas

Victims of a crash can find out if the at-fault driver has insurance in Arkansas by reviewing the police accident report, which typically includes the insurance details provided by each driver at the scene. They can request the report online or by mail by submitting a Request for Arkansas State Police Crash Report by Individuals Involved in the Crash Form to the Arkansas State Police. A $10 fee applies to this request. Victims can use formal discovery tools to obtain the at-fault driver's insurance information if they want to take legal action. Courts generally require parties to disclose insurance policy details that could be used to satisfy a potential judgment.

Are Accidents Public Record in Arkansas?

Yes, some documents relating to accidents are public records in Arkansas. For example, anyone can obtain copies of police accident reports under the Arkansas Freedom of Information Act (FOIA) from the Arkansas State Police or local law enforcement agencies. However, access to the report may be restricted if it involves juveniles, sensitive personal details, or ongoing investigations. If an accident leads to a lawsuit, the resulting court records are typically public unless sealed by a judge. Requesters can find such records through the Arkansas Case Search portal using a name or case number. Conversely, Driving records that include accident histories are confidential and can only be accessed by the driver, authorized legal representatives, law enforcement, or individuals with the driver's consent.

Can You Go to Jail for Causing an Accident Without Insurance in Arkansas?

Yes, uninsured drivers who cause an accident in Arkansas may face jail time. For a third or subsequent offense, they can be fined between $500 and $1,000, sentenced to up to one year in jail, or both.

Can You Settle With an Uninsured Driver Out of Court in Arkansas?

A victim can legally settle with an uninsured driver out of court in Arkansas. Such settlements are valid and binding if both parties agree. The settlement agreement must be in writing and carry the signature of the party to be charged to be enforceable under A.C.A. § 4-59-101. If the uninsured driver fails to follow the agreement, the victim can take legal action to enforce it.

Can I Get Compensation If I Was Partially at Fault?

Yes, a motorist can get compensation if they were partially at fault in Arkansas, but it depends on the extent of their responsibility for the incident. Arkansas follows a modified comparative negligence system (A.C.A. § 16-64-122) that allows a person partially at fault to recover damages only if their share of fault is less than 50 percent. On the other hand, if the motorist is found to be 50% or more at fault, Arkansas law bars them from recovering any damages, even if another party was also negligent.