Arkansas Uninsured Motorist Statute: How UM Coverage Works in the State

Arkansas requires drivers to carry liability insurance, but not every driver on the road complies. When a crash involves someone who has no insurance — or not enough — uninsured motorist (UM) coverage becomes the financial backstop. Arkansas law specifically addresses how that coverage must be offered, what it includes, and when it applies.

What Arkansas Law Requires Insurers to Offer

Under Arkansas Code § 23-89-403, auto insurers writing liability policies in the state must offer uninsured motorist coverage to policyholders. The coverage must be offered in the same amounts as the liability limits purchased — meaning if a driver buys $50,000 in bodily injury liability, the insurer must offer $50,000 in UM coverage as well.

Policyholders can reject this coverage in writing. If they do not reject it, it is typically included. This is an important distinction: silence or inaction may mean the coverage exists, while an active written waiver means it does not.

Arkansas law also requires insurers to offer underinsured motorist (UIM) coverage, which addresses situations where the at-fault driver has insurance but not enough to cover the full extent of damages.

What Uninsured Motorist Coverage Actually Covers

UM coverage in Arkansas is generally designed to compensate an insured person for losses they would otherwise have been able to recover from an at-fault driver — if that driver had been properly insured.

Typical categories of covered losses include:

• Bodily injury — medical expenses, rehabilitation costs, lost wages, and pain and suffering
• Death — benefits to eligible surviving family members
• Property damage — some policies include uninsured motorist property damage (UMPD), though this is handled separately and may carry a deductible

Whether property damage is included in UM coverage depends on the specific policy. Not all UM policies automatically extend to vehicle damage, so the policy language matters.

How a UM Claim Works After a Crash in Arkansas 🚗

When a driver is hit by an uninsured motorist, the claim is filed with the injured driver's own insurance company — not the at-fault driver's insurer, since there isn't one. This is called a first-party claim.

Here's how the process generally unfolds:

One important aspect of Arkansas UM claims: the insurer steps into the shoes of the uninsured driver. This means the injured person generally still has to establish that the uninsured driver was at fault — UM coverage isn't automatic payment; it's coverage contingent on proving the other party's liability.

Hit-and-Run Accidents and the "Physical Contact" Question

A common issue in UM claims involves hit-and-run drivers — situations where the at-fault driver flees and cannot be identified. Arkansas law addresses this, but the details depend on policy language.

Some policies require physical contact between the vehicles before a UM claim can be filed in a hit-and-run scenario. This prevents fraudulent claims where no other vehicle was actually involved. If a driver is forced off the road by a vehicle that never made contact, whether that qualifies under UM coverage depends on the specific policy and how the insurer interprets it.

Stacking: Can Coverage Be Combined? 📋

Stacking refers to combining UM coverage limits from multiple vehicles or multiple policies to increase the total available benefit. In some states, stacking is permitted; in others, it is prohibited or must be waived in writing.

In Arkansas, the rules around stacking can vary based on policy language and how courts have interpreted the statute. Some insurers include anti-stacking provisions in their policies. Whether those provisions are enforceable, and under what circumstances, is fact-specific.

The Offset Issue: What Happens When Other Coverage Applies

If an injured person receives compensation from other sources — such as MedPay, health insurance, or workers' compensation — the insurer may argue that those payments should offset the UM payout. This reduces the total amount the insurer owes.

How offsets are handled in Arkansas depends on the policy language and applicable case law. Courts have addressed these questions in varying ways, and the outcome can differ based on the type of coverage involved and when payments were made.

Variables That Shape How a UM Claim Resolves

No two UM claims follow the same path. Outcomes depend on:

• Coverage limits purchased — a $25,000 UM policy pays out differently than a $100,000 one
• Severity of injuries — soft tissue injuries, fractures, and long-term conditions are evaluated differently
• Whether the at-fault driver had any insurance at all, or was simply underinsured
• The insurer's interpretation of policy language regarding stacking, offsets, and hit-and-run requirements
• Whether a written rejection of UM coverage exists in the policyholder's file
• The statute of limitations — Arkansas sets deadlines for filing UM claims, which can differ from general personal injury deadlines and vary based on how the claim is characterized

The difference between a smooth UM claim and a disputed one often comes down to policy wording, documented evidence of fault, and how the insurer has chosen to interpret the applicable provisions.

What the Arkansas UM statute establishes is a floor — a minimum framework of what must be offered and how coverage must function. What a specific policy actually provides, and what a specific claim ultimately yields, depends on the details that only that policyholder's documents and circumstances can answer.