Insurance System & Requirements

Arkansas operates under an at-fault insurance system, meaning the driver responsible for a crash is financially liable for resulting damages. Injured parties pursue compensation from the at-fault driver's insurer, file a lawsuit directly against the at-fault driver, or both.

Minimum required coverages

All drivers operating a vehicle in Arkansas must carry the following minimum liability coverage under Ark. Code Ann. § 27-22-104:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $25,000 per accident

Coverage at minimum levels can be exhausted quickly in serious crashes involving significant injuries or multiple vehicles. Higher voluntary limits are advisable for most drivers.

Uninsured and underinsured motorist coverage (UM/UIM)

Arkansas does not mandate UM/UIM coverage, but insurers must offer it. Drivers who do not formally reject it in writing may find it automatically included in their policy. UM coverage applies when the at-fault driver has no insurance. UIM coverage applies when the at-fault driver's limits are insufficient to cover your full losses, and is only available if UM coverage is also carried.

Uninsured Motorist Property Damage (UMPD)

When purchasing UM bodily injury coverage, Arkansas insurers must offer UMPD coverage for vehicle damage caused by an uninsured driver. A $200 deductible typically applies, waived when the insurer also covers collision damage and the uninsured driver is clearly at fault. UMPD limits cannot exceed the policy's property damage liability limits. Drivers may reject UMPD in writing.

PIP and MedPay

Personal Injury Protection and Medical Payments coverage are both optional in Arkansas. If offered, each must provide at least $5,000 per person per accident. Both pay for medical expenses regardless of fault and can be declined by written notification to the insurer.

Rideshare coverage requirements

For Uber, Lyft, and similar platform drivers, Arkansas law establishes coverage requirements based on driver status:

• App on, no ride accepted: $50,000 per person / $100,000 per accident for bodily injury; $25,000 for property damage
• Ride accepted or passenger onboard: $1,000,000 in combined liability coverage

The driver, the Transportation Network Company, or both may provide this coverage. Drivers must carry proof of coverage and disclose rideshare status after a crash.

Penalties for non-compliance

Driving without required insurance in Arkansas carries escalating consequences under Ark. Code Ann. § 27-22-103:

• First offense: Fine of $100 to $250
• Second offense: Fine of $250 to $500
• Third and subsequent offenses: Fine of $500 to $1,000; up to one year in jail; or both

Failure to provide proof of insurance when resolving the case results in registration suspension. Reinstatement requires proof of current insurance submitted to the Office of Motor Vehicle and payment of a $20 reinstatement fee. A driver who proves valid insurance existed at the time of the stop but failed to present it faces a reduced $25 fine, and the charge may be dismissed entirely if valid insurance is confirmed at resolution.

Fault & Negligence Laws

Modified comparative fault

Arkansas follows a modified comparative fault rule under Ark. Code Ann. § 16-64-122. An injured party can recover damages only if their share of fault is less than 50 percent. A plaintiff found exactly 50 percent at fault, or more, recovers nothing. A plaintiff found less than 50 percent at fault recovers their damages reduced proportionally by their share of responsibility.

A concrete example: if you are found 30 percent at fault and your total damages are $100,000, you recover $70,000. If you are found 50 percent at fault for the same crash, you recover nothing.

This positions Arkansas alongside most states in using modified comparative fault, and alongside neighboring states like Texas (51% bar) and Tennessee (50% bar). Unlike New Mexico and Alaska, where pure comparative fault allows recovery at any fault percentage, and unlike Alabama, where any fault at all bars recovery entirely, Arkansas occupies the standard modified fault position. For a broader explanation of how these systems compare, see our article on comparative and contributory negligence.

How fault is determined

Fault is established through police reports, witness statements, dashcam and surveillance footage, physical evidence, medical records, and accident reconstruction analysis in contested cases. Insurance adjusters investigate promptly after any significant crash. Under Arkansas's modified comparative fault standard, evidence that the injured party contributed to the crash is highly significant; any fault share at or above 50 percent eliminates the claim entirely rather than reducing it.

Multi-vehicle collisions

When more than two parties share responsibility, fault is allocated among all involved based on each party's contribution, with all percentages summing to 100 percent. Each defendant is generally liable for their proportionate share of damages.

Passenger rights

Passengers are generally not considered at fault and can pursue claims against any at-fault driver involved, including the driver of the vehicle they were traveling in. A passenger whose own conduct contributed to the crash may have their recovery reduced proportionally under Arkansas's modified comparative fault standard.

Arkansas Act 28: The Medical Damages Rule

For decades, Arkansas personal injury law followed the collateral source rule, which allowed injured plaintiffs to present the full amount billed for medical care as evidence of past medical damages, even when health insurance had negotiated that amount down significantly. A plaintiff whose insurer paid $22,000 for treatment billed at $80,000 could still present the $80,000 figure as their medical damages. That rule no longer applies.

What Act 28 changed

On February 11, 2025, Governor Sarah Huckabee Sanders signed House Bill 1204 into law as Act 28. The legislation took effect August 4, 2025, and amended Ark. Code Ann. § 16-64-120 to add the following operative limitation: recovery of past medical damages includes only amounts actually paid by or on behalf of the plaintiff, or amounts that remain unpaid and for which the plaintiff or any third party is legally responsible.

The practical effect is direct. When health insurance, MedPay, or another source paid for treatment at a negotiated rate lower than the billed amount, only the paid amount can now be presented as past medical damages. The gap between the sticker price and the negotiated rate, which can be substantial given how hospitals price services, is no longer recoverable.

Why this matters in practice

Medical billing in the United States routinely involves two figures: the billed amount that appears on an invoice, and the paid amount that an insurer actually remits under its contracted rate. The difference can be significant. A hospitalization billed at $120,000 might be settled by an insurer for $38,000 under a negotiated rate agreement. Before Act 28, an Arkansas plaintiff could present $120,000 as their medical damages. After August 4, 2025, they can present only $38,000 plus any remaining balance they personally owe.

This change reduces the economic damages figure available in many personal injury claims and narrows the overall recovery available to seriously injured Arkansas drivers. It also changes how medical billing records must be handled in litigation. Itemized records showing what was billed, what was paid, what was written off, and what remains legally owed become essential documentation rather than background material.

What has not changed after Act 28?

Act 28 addresses only past medical expenses. Future medical costs, including anticipated ongoing treatment, rehabilitation, and long-term care needs, are not directly limited by the statute. Economic damages beyond medical expenses, including lost income and reduced earning capacity, are also unaffected.

Non-economic damages remain uncapped under the Arkansas Constitution's prohibition on damages limitations.

The law applies to causes of action arising on or after its effective date of August 4, 2025. The applicability to cases filed before that date where the cause of action arose earlier remains a developing area of Arkansas litigation practice.

Statute of Limitations

The statute of limitations sets the deadline for filing a lawsuit after a car accident. Missing the applicable deadline almost always bars the claim permanently.

Standard filing deadlines in Arkansas

• Personal injury: 3 years from the date of the accident under Ark. Code Ann. § 16-56-105
• Property damage: 3 years from the date of the accident under Ark. Code Ann. § 16-56-105
• Wrongful death: 3 years from the date of the victim's death under Ark. Code Ann. § 16-56-105

Arkansas applies the same three-year period to personal injury, property damage, and wrongful death claims. The wrongful death period runs from the date of death, which may differ from the date of the accident if the injured person survived before dying from their injuries.

Claims against government entities

Claims against the State of Arkansas cannot be filed in state court under Article 5, Section 20 of the Arkansas Constitution, which provides that the state is immune from suit in its own courts. Instead, personal injury claims against the state must be filed with the Arkansas State Claims Commission, a separate administrative body that evaluates claims and determines whether compensation is warranted. The Commission's own procedural deadlines and requirements apply rather than the standard court filing deadlines, and these should be confirmed with the Commission before filing.

Claims against municipalities and local government entities follow separate rules under Arkansas law. Consult an attorney promptly when a government entity is involved, since procedural missteps at the notice stage can bar an otherwise valid claim entirely. See our article on sovereign immunity and suing the government for the broader framework.

Tolling and exceptions

• Minors: The statute of limitations is tolled during minority under Ark. Code Ann. § 16-56-116. Arkansas's age of majority is 18. A minor's three-year limitations period begins running when they turn 18, giving an injured child until their 21st birthday to file a personal injury claim
• Incapacity: The limitations period may be tolled if the injured person was legally incapacitated at the time the claim accrued, with the period beginning when capacity is restored
• Defendant out of state: If the at-fault driver leaves Arkansas after the crash, the period of their absence may not count toward the limitations period under Ark. Code Ann. § 16-56-117
• Discovery rule: Where injuries were not immediately apparent, the limitations period may begin from the date the injury was or reasonably should have been discovered

Procedures for MVAs & Police Involvement

When you are required to report an accident

Arkansas law requires drivers to immediately notify the nearest law enforcement agency when a crash resulted in injury or death to any person, or when it caused total property damage of $3,000 or more. All drivers involved must remain at the scene and make themselves available to responding officers.

Arkansas's $3,000 property damage reporting threshold is higher than most states, meaning some crashes that trigger mandatory reporting elsewhere do not require immediate law enforcement notification in Arkansas.

When you are required to file an SR-1

Separate from the law enforcement notification requirement, the Arkansas Department of Finance and Administration requires drivers to file a Form SR-1 (Safety Responsibility Accident Report) within 30 days when a crash caused property damage in excess of $1,000 to any one person's property, or when it resulted in injury or death to any person, regardless of fault.

The practical result: a crash causing between $1,000 and $3,000 in property damage does not require immediate law enforcement notification, but does require an SR-1 to be filed with the DFA. A crash causing more than $3,000 triggers both obligations. The SR-1 is primarily an administrative, financial responsibility document — it initiates the DFA's process for verifying insurance compliance after a crash.

How to access your accident report

Crash reports filed by Arkansas State Police can be requested through multiple channels:

• Online: crashreports.ark.org
• In person: Visit a local Arkansas State Police office
• By mail: Arkansas State Police, Attn: Crash Records Station, One State Police Plaza Drive, Little Rock, AR 72209

A $10 fee applies per report. Reports are typically available within ten business days. For crashes investigated by a local police department or county sheriff, contact the relevant agency directly.

Crash reports are primary reference documents for insurers and attorneys. Errors are worth addressing promptly. See our article on what to do if your car accident police report is inaccurate for the steps involved.

Compensation: Types & Limits

Arkansas does not cap compensatory damages in personal injury or wrongful death cases. Article 5, Section 32 of the Arkansas Constitution provides that no law shall be enacted limiting the amount to be recovered for injuries resulting in death or for injuries to persons or property. This constitutional prohibition places Arkansas alongside Arizona in protecting the right to full compensatory recovery from legislative interference.

Economic damages

Economic damages cover measurable financial losses and are uncapped in Arkansas vehicle accident cases. They include:

• Medical expenses, past and future
• Lost income and reduced earning capacity
• Property damage and vehicle repair or replacement costs
• Out-of-pocket expenses directly related to the crash and recovery
• Future care costs where injuries require ongoing treatment

A critical note on past medical expenses

As described in the Act 28 section above, past medical expense recovery in Arkansas is now limited to amounts actually paid or legally owed rather than the full amount billed. This does not affect future medical expense claims, lost income, or other economic damages, but it directly reduces what a seriously injured plaintiff can recover for treatment already received when health insurance negotiated rates significantly below the billed amount. Accurate medical billing records documenting paid, owed, and written-off amounts are now essential to calculating and presenting past medical damages correctly.

Non-economic damages

Non-economic damages address losses that cannot be reduced to a bill or receipt, including pain and suffering, emotional distress, loss of enjoyment of life, and loss of consortium. Arkansas imposes no cap on non-economic damages under the constitutional prohibition.

A spouse or domestic partner of a seriously injured person may bring a separate loss of consortium claim for the loss of companionship and support.

Wrongful death damages

When a crash results in death, surviving family members or the estate may pursue a wrongful death claim under Ark. Code Ann. § 16-62-102. Recoverable damages include the financial support the deceased would have provided, funeral and medical expenses, and the mental anguish suffered by surviving family members. Arkansas wrongful death claims may be brought by the surviving spouse, children, parents, or the deceased's estate, depending on circumstances.

Punitive damages

Punitive damages are available in Arkansas in cases involving conduct that is malicious, deliberate, or so reckless as to show a conscious indifference to consequences. The prior statutory cap on punitive damages of $250,000 or three times compensatory damages was ruled unconstitutional in 2011 under the same Article 5, Section 32 prohibition that bars compensatory damages caps. Punitive damages in Arkansas are therefore uncapped, though the Arkansas Supreme Court retains authority to review and reduce awards deemed excessive.

Claims against the state

The Arkansas Constitution bars suits against the state in its own courts under Article 5, Section 20. Personal injury claims against state entities must be filed with the Arkansas State Claims Commission rather than in circuit court. The Commission evaluates claims and determines whether compensation is warranted. Recovery through the Commission may be subject to limitations specific to the claim and the Commission's procedural requirements.

Medical Payments & Health Coverage

Arkansas's at-fault system means there is no automatic first-party coverage for medical expenses after a crash. Costs are addressed through the at-fault driver's liability insurance, your own optional coverages, and health insurance, with sequencing depending on which coverages you carry.

The at-fault driver's liability insurance

The at-fault driver's bodily injury liability policy is the primary source of coverage for your medical expenses. At Arkansas's minimum of $25,000 per person, that coverage can be exhausted quickly in serious crashes. When it is, your own coverages become the next resource.

PIP and MedPay

Both PIP and MedPay are optional in Arkansas and must provide at least $5,000 per person per accident if offered. Both pay for medical expenses regardless of fault and without waiting for liability to be established, making them practical resources for covering immediate costs while a claim is pending. MedPay can also cover deductibles and co-pays that health insurance does not address.

Health insurance

Once PIP or MedPay limits are exhausted, or if you do not carry either, health insurance covers ongoing accident-related treatment. Most health insurers will cover accident-related care, but may assert a subrogation lien on any settlement or judgment you receive from the at-fault driver. Self-funded employer plans governed by ERISA can assert subrogation rights that Arkansas state rules cannot limit. Understanding your plan's subrogation terms before settling is important.

With the passing of Act 28, if your health insurer paid for your treatment at a lower negotiated rate, that paid amount, not the original billed amount, is now the ceiling for past medical expense damages against the at-fault driver.

Uninsured and underinsured motorist coverage

When the at-fault driver has no insurance or insufficient coverage, UM/UIM becomes the primary recovery source beyond a personal lawsuit. Arkansas requires insurers to offer UM/UIM coverage, and drivers who do not reject it in writing may find it automatically included. Our article on what to do if you're in an accident with an uninsured driver covers how these claims work in practice.

Medical liens

Healthcare providers may place a medical lien on your injury settlement, requiring reimbursement directly from your recovery before the remaining balance reaches you. The interaction between medical liens and Act 28's paid-amount limitation adds complexity: a provider who billed $80,000 but accepted $22,000 from a health insurer may still assert a lien for amounts owed, but the recoverable medical damages from the at-fault driver are limited to the paid and legally owed amounts. Accounting for all outstanding liens before settling ensures no unexpected obligations arise after funds are disbursed.

Unique Local Considerations

Severe weather and tornado risk

Arkansas sits within one of the most active tornado corridors in the United States, and severe thunderstorms are a year-round feature of driving in the state rather than a seasonal hazard. The risk is highest during spring and fall, particularly in the Arkansas River Valley and the Delta, but significant tornado and storm activity occurs across the entire state. Sudden storm-related driving hazards include downed trees and power lines across roadways, debris on highways, flooding, and road closures that divert traffic onto unfamiliar routes under dangerous conditions.

Under Arkansas's modified comparative fault standard, a driver caught in a sudden severe weather event is not automatically insulated from fault. Courts examine whether the driver responded reasonably to visible warning signs, adjusted speed appropriately for deteriorating conditions, and heeded available weather alerts. A driver who continued at highway speed through a visibly worsening storm or ignored closure advisories may bear a share of fault under the 50 percent bar that eliminates recovery entirely.

Flash flooding and low-water crossings

Arkansas's geography creates frequent flash flood conditions during heavy rain, particularly in the Ouachita and Ozark mountain regions, the Arkansas Delta, and areas near the Arkansas, White, and Buffalo rivers. Rural roads are especially vulnerable to sudden flooding and washouts. The state's low-water crossings, common on rural and forest roads, can become impassable within minutes of a storm beginning upstream.

Arkansas has no statute specifically penalizing drivers who enter flooded roadways, but the comparative fault analysis still applies, reducing or potentially eliminating recovery if that share reaches 50 percent. The decision to enter a flooded crossing is a recognizable source of comparative fault argument in Arkansas crash litigation.

Winter weather

Northern Arkansas and higher elevations in the Ozarks receive significant ice and snow accumulation during winter months, and even lower-elevation regions can experience dangerous ice storms that are more hazardous than snowfall because they form on road surfaces that appear clear. Arkansas's road maintenance infrastructure for winter conditions is less robust than northern states, and drivers from other regions underestimate the severity of Arkansas ice storms. A driver who fails to adjust for icy conditions, or who ignores advisories about hazardous roads, carries their share of fault under Arkansas's modified comparative fault standard regardless of what other factors contributed to the crash.

Wildlife hazards

Arkansas's extensive rural road network carries one of the higher deer collision rates in the South, with the peak risk period running from October through December during the rut season. Deer crossings are concentrated on forested and agricultural routes across northern and central Arkansas, and collisions typically occur at dawn and dusk when deer movement is highest. Wildlife collisions are generally treated as single-vehicle incidents for insurance purposes, with comprehensive coverage rather than liability coverage being the relevant policy for vehicle repairs. When inadequate signage in a known high-collision corridor contributed to a crash, a government entity claim may be worth exploring, subject to the Arkansas State Claims Commission process described above.

For real-time road condition updates, closures, and weather-related alerts across Arkansas's highway network, the IDrive Arkansas portal, maintained by the Arkansas Department of Transportation, provides current information statewide. 

Local Resources & Contacts

Arkansas Department of Finance and Administration (DFA) — Driver Services
Handles driver licensing, vehicle registration, SR-1 accident report submissions, financial responsibility determinations, and insurance compliance after crashes.

• Website: dfa.arkansas.gov
• Phone: (501) 682-7100
• SR-1 form
• Physical address: Ragland Building, 1900 W. 7th St, Rm 1120, Little Rock, AR 72203

Arkansas State Police (ASP)
Responds to accidents on state highways and handles crash report requests for ASP-investigated crashes.

• Website: dps.arkansas.gov/law-enforcement/arkansas-state-police
• Phone: (501) 618-8000; for emergencies dial 911
• Crash report requests: crashreports.ark.org
• Mail requests: Arkansas State Police, Attn: Crash Records Station, One State Police Plaza Drive, Little Rock, AR 72209

Arkansas Insurance Department (AID)
For insurance complaints, coverage disputes, insurer licensing verification, and questions about minimum coverage requirements.

• Website: insurance.arkansas.gov
• Phone: (800) 282-9134

Arkansas Department of Transportation (ARDOT)
For road condition reports, highway safety information, construction updates, and real-time travel conditions.

• Website: ardot.gov
• Road conditions: idrivearkansas.com

Arkansas State Claims Commission
For personal injury claims against the State of Arkansas, which cannot be filed in state courts under the Arkansas Constitution and must instead go through this administrative body.

• Website: arclaimscommission.arkansas.gov
• Phone: (501) 682-1619

For accident laws in other states, visit our state-specific legal information page.