What Happens if the At-Fault Driver Doesn’t Have Insurance?

Every driver in Arkansas is required to have minimum mandatory liability coverage. Unfortunately, many motorists are uninsured or underinsured. These claims can be especially challenging for injured victims. An experienced Little Rock car accident attorney can help you seek justice and compensation if you were involved in a crash with a driver who did not have proper insurance.

The Insurance Information Institute (III) reports that 15.1 percent of motorists in Arkansas lacked the proper liability coverage in 2022. It can be frustrating to deal with this type of crash, but the good news is that an uninsured at-fault driver does not necessarily leave an injured motorist without a source of financial recovery. In Arkansas, compensation may be available through uninsured motorist coverage under the injured motorist’s own policy or through a third-party liability claim.

Why Does Fault Matter for Car Accidents in Arkansas?

Fault matters because the party, driver or otherwise, who is found to be responsible for causing a crash through negligence can be held legally liable for the resulting damages.

Under Ark. Code Ann. § 16-64-122, our state uses a modified comparative fault system. That means that every percentage point of fault matters. An injured victim can still recover when partially responsible for a crash as long as his or her degree of fault is less than the fault attributed to the party or parties from whom damages are sought. However, an injured victim will not receive a dime if he or she is found to be 50 percent (or more) liable for their own accident.

Are Drivers Required to Have Liability Insurance in Arkansas?

Yes. Arkansas requires all motorists to have minimum mandatory liability coverage. State law (Ark. Code Ann. § 27-22-104) makes it unlawful to operate a motor vehicle on public roads unless the vehicle is covered by an insurance policy or an applicable certificate of self-insurance. The statute establishes minimum liability coverage of:

• $25,000 for bodily injury or death of one person in one accident;
• $50,000 for bodily injury or death of two or more people in one accident; and
• $25,000 for damage to or destruction of another person’s property in one accident.

Notably, these are minimum requirements in the state. Unfortunately, the law does not guarantee that every Arkansas driver maintains compliant coverage. When an at-fault motorist lacks liability insurance, an injured victim may need to explore other options to recover compensation.

How Do Uninsured Motorist Claims Work in Little Rock?

In Arkansas, an at-fault driver is liable for a crash regardless of whether or not he or she has liability coverage. However, there is a practical change. Most uninsured motorists lack the assets against which financial recovery can be obtained. In other words, you can sue an uninsured driver, but even with a strong case, recovery will be difficult. As the adage goes, you can’t get blood from a stone.

However, there may be alternative options available. An uninsured motorist claim is a claim against your own automobile insurer for damages caused by a driver who does not have liability insurance. Arkansas law provides important protection in these situations, though UM coverage does not automatically result in payment. The injured person generally must establish that he or she is legally entitled to recover damages from the uninsured driver. In practical terms, that means proving the same core issues that would exist in a claim against an insured driver: fault, causation, and damages.

That is one reason a UM claim can become adversarial, even when the injured person is dealing with their own insurance carrier. Your insurer has contractual obligations under the policy, but it can still investigate the claim and contest the amount it believes it owes. An experienced Little Rock uninsured motorist attorney can help you navigate the claims process.

In some cases, an injured victim may also have options to recover compensation from a third party. As an example, imagine that you were involved in a collision with two other drivers. If both were partially at fault for the crash but only one had adequate liability insurance, you could potentially pursue a claim against the insured driver and, depending on the other driver’s insurance status and the coverage available under your policy, a UM or UIM claim with your own insurer.

FAQs: When the At-Fault Driver Does Not Have Insurance

Do I Have UM/UIM Coverage?

Check your policy. Arkansas law generally requires automobile insurers to offer and include uninsured motorist (UM) bodily injury coverage unless a named insured rejects that coverage in writing. Underinsured motorist (UIM) coverage is treated separately: insurers must give eligible insureds an opportunity to purchase it, and the insured may reject it in writing.

Should I Speak to a Lawyer After a Crash with an Uninsured Driver?

Yes. A crash involving an uninsured driver can create complicated insurance issues because the injured victim may need to pursue benefits under their own UM policy rather than relying on the at-fault driver’s liability carrier. An experienced Little Rock auto accident attorney can help you navigate the uninsured motorist claims process.

What Compensation Can I Recover After an Uninsured Motorist Crash?

In Arkansas, car accident victims have the right to seek compensation for the full value of their damages, including non-economic losses. Along with other types of damages, you may be entitled to recover for vehicle repairs, medical bills, physical therapy, lost wages, loss of earning power, pain and suffering, and other non-economic losses.

Get Help from Our Little Rock Uninsured Motorist Lawyer Today

At Reed Firm, our Little Rock car accident attorney has the experience to handle uninsured motorist claims. If you have any questions about uninsured motorist claims, please call us at 501-777-7333 or contact us online to get a free, confidential case review. Our firm handles uninsured motorist claims in Little Rock and throughout Arkansas.