When someone injures you in a car accident, you will most likely turn to the negligent driver’s insurance to cover your initial losses. However, if they do not have insurance or only have the minimum coverage, you will need other methods to pay your damages.
Fortunately, your uninsured and underinsured insurance coverage can help fill the gap if you have it. These forms of coverage are completely optional, so you are not obligated to purchase them when choosing a car insurance policy. If you do not, you might left with few options to keep you from paying out of pocket. Our lawyers can help you file a claim when another driver cannot pay your losses and determine if filing a lawsuit is worth the added time and expenses. If a driver cannot pay, we might be able to get a court order to take their property or wages as compensation.
Call us today at (479) 316-0438 to get your free and confidential case assessment with our Arkansas car accident lawyers.
How Uninsured and Underinsured Motorist Insurance Works in Arkansas
Arkansas is an at-fault insurance state, meaning that when a vehicle accident happens, the victim will typically file a third-party insurance claim against the negligent driver. If they have enough insurance to cover your losses, settling an insurance claim should not be too much of a problem. However, not every driver carries insurance, even though that is illegal under Ark. Code. § 27-22-104(a), and some drivers do not have enough coverage to pay for a victim’s damages fully. When that happens, your uninsured and underinsured insurance coverage can help fill the gap so that you are not left on the hook for damages for which you are not responsible.
Our car accident attorneys in Arkansas can explain the details of this coverage, including how to recover compensation after an accident in which a negligent driver does not have the proper insurance. While Arkansas law requires every driver to have a certain minimum amount of insurance coverage, uninsured and underinsured insurance is optional. Sure, you might pay higher premiums now, but it can save you much more in the future.
Minimum Insurance Requirements
When purchasing your car insurance coverage, you must have a minimum amount to cover injuries and property damage. According to § 27-22-104(b), every driver must possess $25,000 in bodily injury coverage per person and $50,000 in total bodily injury coverage per accident. In addition to this, every policy must include at least $25,000 in property damage coverage.
You and every other Arkansas driver can purchase more coverage than this to be protected, but many elect only to carry the minimum. As you can see, these amounts are not that high when you compare them against the costs of modern healthcare. If another driver hits you but only has basic coverage or no coverage at all, you can turn to underinsured and uninsured if you have it.
Uninsured Motorist Insurance
Uninsured motorist insurance can help out in a few situations.
The most common scenario is when a driver crashes into you and admits they do not have insurance or cannot provide proof at the scene. If so, you will file a claim with your own insurance provider to claim uninsured compensation that your basic policy did not cover.
Uninsured insurance can also help pay for damages if a hit-and-run driver injures you. You likely cannot wait for the police to find a hit-and-run driver, if they do at all, before you need compensation. This insurance can not only cover your losses but also give you peace of mind, knowing you are protected if this occurs.
However, uninsured insurance is completely optional, so you must elect it when purchasing your standard policy. If you decide that you do not want the extra monthly expenses, you can reject it, but you must do so in writing, as per § 23-89-209(a)(1).
Underinsured Motorist Insurance
More commonly, a negligent driver injures you and does have insurance but not enough to cover all your damages. You will typically have medical bills, lost wages, and repair or replacement costs for your vehicle, which can be substantial. If the other driver lacks sufficient insurance to cover the range of losses, you can file an underinsured claim with your provider.
Like uninsured coverage, underinsured insurance is optional and must be rejected in writing. Drivers who do elect it when buying a policy must have underinsured coverage equal to the bodily injury limits included in their insurance, according to § 23-89-209(a)(4).
You also cannot purchase underinsured insurance unless you have elected uninsured coverage, as per § 23-89-209(b).
The problem in these situations is whether you should settle a claim with a driver who has insufficient insurance to cover your losses. Our team can assess your damages and what you can get from the other driver’s insurance and your underinsured coverage. If we determine that together, it will cover your current and future losses, like the medical treatment you might need down the road, settling might be better than dragging the case out. If not, we can counsel you on how to recover these damages, such as filing a lawsuit. Once you settle your claim, though, you typically cannot go back to recover losses you discover later.
How Can I Recover Compensation if a Negligent Driver is Uninsured or Underinsured in Arkansas?
A lawsuit is usually the best, if not the only, option to recoup your damages when another driver is uninsured or underinsured. Unlike insurance, you are not limited to a certain amount of money you can recover in a lawsuit. You can claim all the damages stemming from the other driver’s negligence as long as you can prove the costs and that the defendant caused them.
However, a driver lacking sufficient insurance might not have the money to pay the award from a lawsuit, effectively making them “judgment proof.” If so, we might be able to have the court put a lien on the defendant’s property or garnish their wages so you get the compensation you deserve.
Contact Our Car Accident Attorneys in Arkansas Today for Help Covering the Damages Another Driver Caused
For a free case review, call our personal injury attorneys today at (479) 316-0438.