What to Do If Hit by an Uninsured or Underinsured Driver in Arkansas: UM/UIM Claims Guide
If you are hit by an uninsured driver in Arkansas, your UM/UIM coverage acts as a safety net. Arkansas law also allows policy stacking to significantly increase your financial recovery.
Despite mandatory insurance laws, a shocking number of drivers in Arkansas navigate the roads without a valid auto insurance policy. Whether you are driving through the busy streets of Little Rock, commuting in Bentonville, or walking through downtown Hot Springs, an encounter with an uninsured motorist can leave you facing massive medical bills with seemingly no one to hold accountable.
Fortunately, if you have Uninsured Motorist (UM) or Underinsured Motorist (UIM) coverage on your own auto policy, you have a direct path to financial recovery. Dealing with your own insurance company should be easy, but adjusters often treat UM/UIM claims just as aggressively as third-party claims. Finding an experienced personal injury attorney in our US Lawyer Directory can help you force your insurer to honor their contract and maximize your payout.
Understanding UM and UIM Coverage in Arkansas
In Arkansas, UM and UIM coverage is governed by A.C.A. § 23-89-209. By law, insurance companies must offer you this coverage when you purchase a policy, and you must sign a written waiver if you choose to reject it. UM coverage pays for your bodily injuries if the at-fault driver has no insurance at all. UIM coverage kicks in when the at-fault driver has state minimum insurance (such as $25,000), but your medical bills exceed that amount.
Hit-and-Run Victims
If you are the victim of a hit-and-run in Arkansas, the law treats the fleeing phantom driver as an uninsured motorist. However, to successfully file a UM claim for a hit-and-run, your insurance policy usually requires strict proof that actual physical contact occurred between your vehicle and the fleeing vehicle. Additionally, you must report the accident to the police within a very tight timeframe, often 24 to 48 hours.
Passengers in a Car with UM Coverage
If you are riding as a passenger in a friend's car and are hit by an uninsured driver, whose insurance pays? In Arkansas, the UM coverage of the vehicle you are riding in usually acts as the primary coverage. If your injuries exhaust your friend's UM limits, you can then potentially look to your own personal auto UM policy as secondary coverage.
Pedestrians Hit by Uninsured Cars
You do not even have to be inside a vehicle to use your UM coverage. If you are jogging in Fayetteville or crossing the street in Conway and are struck by an uninsured or hit-and-run driver, your own auto UM/UIM policy will generally cover your medical expenses, lost wages, and pain and suffering, up to your policy limits.
Step-by-Step: Filing a UM/UIM Claim in Arkansas
Filing a claim against your own insurance company requires a strategic approach. Follow these steps to protect your rights.
Step 1: Reporting to the Police
Never let an uninsured driver talk you into settling outside of the system. Immediately call 911 and have an official accident report generated by the Little Rock Police Department Little Rock, the Arkansas State Police Little Rock, or your local agency. Your insurance company will almost certainly deny a UM claim if there is no police report documenting the crash.
Step 2: Notifying Your Insurance Quickly
You must notify your insurance company of the accident promptly. Many drivers fear that reporting the crash will cause their rates to skyrocket. However, Arkansas law generally prohibits insurance companies from raising your premiums for a not-at-fault accident where you must utilize your UM/UIM coverage.
Step 3: Stacking Policies in Arkansas
Arkansas is a state that allows "stacking" of UM/UIM policies unless your insurance contract explicitly and properly prohibits it. If you own three vehicles, each with $25,000 in UM coverage, and they are on the same policy or multiple policies, your attorney may be able to stack them, giving you $75,000 in total available coverage. Your attorney will meticulously review the declarations page to verify stacking eligibility.
Step 4: Submitting a Comprehensive Demand
Once you reach maximum medical improvement, your legal team will submit a demand package to your own UM/UIM adjuster. This includes the Official Crash Report, all hospital billing codes, MRI results, and proof of lost wages. You must prove the other driver's lack of insurance and the total severity of your injuries.
Step 5: Filing a Breach of Contract Lawsuit
If your own insurance company refuses to pay a fair amount or acts in bad faith, your attorney will file a lawsuit. Unlike a standard car accident case which is a negligence tort, suing your own insurer for failing to pay a UM claim is a Breach of Contract lawsuit, filed in a local Arkansas Circuit Court.
Costs of Pursuing a UM Claim
Pursuing a UM/UIM claim does not require you to pay a lawyer out of pocket. Personal injury attorneys in Arkansas take these claims on a contingency fee basis, meaning they earn a percentage (typically 33% to 40%) of the final settlement. Court costs to file a lawsuit in an Arkansas Circuit Court are usually between $165 and $250.
Typical Timeline for Settlement
Because you are dealing with your own insurance company, a UM claim can sometimes move slightly faster than a third-party claim. A typical UM/UIM settlement can take 4 to 8 months once your medical treatment is finished. However, if the insurer disputes the severity of your injuries or fights the policy stacking provisions, litigation can extend the timeline to 1 to 2 years.
| Coverage Type | When It Applies | Can It Be Stacked in AR? |
|---|---|---|
| Uninsured Motorist (UM) | At-fault driver has ZERO insurance or flees | Yes (unless explicitly waived) |
| Underinsured Motorist (UIM) | At-fault driver's limits are too low | Yes (unless explicitly waived) |
Frequently Asked Questions (FAQ)
Do I still have to pay my medical deductible if I use UM coverage?
Generally, UM coverage in Arkansas does not have a deductible for bodily injury claims. However, if you are using Uninsured Motorist Property Damage (UMPD) to fix your car, there is typically a $200 state-mandated deductible.
Can the insurance company drop me for filing a UM claim?
Arkansas regulations highly discourage insurance companies from canceling or non-renewing a policy solely because a policyholder filed a legitimate, not-at-fault Uninsured Motorist claim.
What if the uninsured driver offers to pay me out of pocket?
Never accept this. An uninsured driver rarely has the actual funds to cover expensive medical treatments or surgeries that arise weeks later. Always file a police report and route the claim through your UM policy to protect yourself.
How long do I have to file a lawsuit against my own insurance company?
Because a UM/UIM claim is technically a breach of contract claim rather than a standard negligence claim, Arkansas law generally grants you a five-year statute of limitations to file a lawsuit against your insurer, though acting immediately is always best.
No reviews yet. Be the first to share your experience!