Car insurance claim rules in Arkansas

The clock on an Arkansas claim

Rule 43 of the Arkansas Insurance Department, on unfair claims settlement practices, sets day counts for property and casualty claims. The acknowledgment, investigation and payment limits protect every claimant, including you when you claim against the other driver's insurer. The decision deadline covers first-party claims under your own policy.

The decision clock starts when the insurer receives properly completed proofs of loss, so answer requests quickly and keep dated copies. A denial must cite the policy provision the insurer relies on. If a claim stalls past these limits, our page on claims that drag on shows how to ask for a written answer.

When an Arkansas car is salvage

Under Section 27-14-2301 of the Arkansas Code, a salvage vehicle includes a car that is water-damaged or that sustains other damage equal to or more than 70% of its average retail value, as set under rules of the Office of Motor Vehicle. An insurer that takes ownership of a salvage vehicle must surrender the title within 30 days. For a car eight or more model years old, Section 27-14-2302 lets the insurer choose to surrender the title for a salvage or parts-only title rather than requiring it.

• Comparable car. On a first-party total loss, the insurer may offer a specific comparable car or pay the actual cost of buying one, less your deductible, based on your local market or on quotes from at least two qualified dealers or appraisal services.
• Taxes and transfer fees are included, at no cost to you beyond the deductible.
• Deductions, including for salvage, must be measurable, discernible, itemized and stated in dollars, and fully explained to you.

The 70% line decides the title brand; an insurer can still total a car below it when repairs plus salvage value approach the car's value. Run your numbers through the total loss check, and see our guide to total loss claims for how the settlement is built.

Reporting an Arkansas crash

Section 27-53-202 requires the driver to notify the nearest law enforcement agency immediately when a crash injures or kills anyone or causes apparent property damage of $1,000 or more in total.

A separate report goes to the state. Under Section 27-19-501, the driver must file a report with the Office of Driver Services within 30 days when a crash causes bodily injury, a death or more than $1,000 of damage to any one person's property. The form is approved by the Department of Finance and Administration and can be filed on paper or electronically.

Fault and who pays

Arkansas is an at-fault state: the driver who caused the crash, through their liability insurance, pays for the damage and injuries they caused. Under Section 16-64-122, you can recover only if your fault is less than the fault of the party you claim against, and your damages are reduced by your share. At 50% each, you recover nothing from the other driver.

• Example: with $10,000 in damages and 20% of the fault, you can recover $8,000.
• Your own collision coverage fixes your car while fault is argued; your insurer can then seek its money from the other side.
• Third-party claimants get at least 60 days' written notice under Rule 43 before a time limit the insurer may rely on runs out.

Deadlines to sue and where to complain

Section 16-56-105 of the Arkansas Code sets a three-year limit for actions founded on any liability, express or implied, and for injuring goods, which is the general deadline for crash claims over injuries and vehicle damage. Talks with an adjuster do not pause it.

1. Ask the insurer in writing for the reason for a denial or a low offer and the policy provision it relies on.
2. Call the Consumer Services Division of the Arkansas Insurance Department at 1-800-852-5494 or 501-371-2640.
3. File a complaint online, by email, by fax or by mail to 1 Commerce Way, Suite 102, Little Rock, AR 72202-2087. Our guide to insurance department complaints shows what to include.

Questions people ask