Walk through the steps of a successful Arkansas auto accident claim, from filing the claim to finalizing a settlement.

More than 55 people are injured or killed on Arkansas roadways every day.¹ If you or a loved one are injured in an Arkansas car accident, you have the right to seek compensation from the at-fault party.

Arkansas law defines fault as “… any act, omission, conduct, risk assumed, breach of warranty, or breach of any legal duty which is a proximate cause of any damages sustained by any party…”

You might decide to settle a minor injury claim on your own by negotiating directly with the at-fault driver’s insurance company. Or, you decide to hire an attorney to handle the claim. No matter who is handling the claim, most car accident claims follow the same steps in the settlement process.

1. File a Car Accident Insurance Claim

The first step is to notify the at-fault driver’s insurance company of your intent to file a claim. You are only giving notice of your claim, so you won’t be ready to discuss money. Settlement discussions must wait until you’ve recovered from your injuries.

The company will usually acknowledge your claim with a “Reservation of Rights” letter. The letter basically says that the insurance company will look into the claim, but they reserve the right to deny it.

The Reservation of Rights letter is a boilerplate form sent to everyone who files a claim. Rest assured that Arkansas has Unfair Claims Practices laws that prohibit insurance companies from failing to investigate and pay claims when liability is reasonably clear.

When your claim includes vehicle damage and bodily injury, the insurance company will usually set up two different claims and assign different claim numbers and adjusters. Use the correct claim number when communicating with the insurer about either claim.

Arkansas Minimum Auto Insurance Limits

Arkansas drivers are required to carry auto insurance policies with bodily injury limits of no less than $25,000 per person and $50,000 per accident, and $25,000 for property damage. The minimum mandatory limits won’t be enough compensation for severe injuries.

Talk to an attorney if you’ve suffered high-dollar car accident injuries. An experienced attorney will look for other sources of compensation that may apply to your injury claim.

2. Avoid Recorded Statements

Shortly after filing your claim, you may get a call or visit from an insurance adjuster asking you for a recorded statement. Don’t be bullied or cajoled into giving a recorded statement on the spot. You are never obligated to give the at-fault driver’s insurance company a recorded statement.

Personal injury attorneys warn accident victims to avoid giving a statement without an attorney present. Adjusters are trained to ask trick questions and manipulate you into saying something they can use to deny or minimize your claim.

If you decide to give a statement on your own, plan ahead and have your notes ready to avoid contradicting yourself. Never give a statement when you’re in pain, medicated, tired, or nervous. It’s okay to reschedule for a later date.

3. Decline Early Offers

Most insurance companies make a lowball offer almost as soon as they are notified of the crash. Some adjusters are bold enough to show up in your hospital room.

Don’t hesitate to decline the offer. Tell the adjuster you don’t want to discuss a settlement while you are still recovering from your injuries, and you’ll let them know when you are ready.

The adjuster is not your friend, even if they act friendly and send you flowers. The adjuster is paid to get you to settle as quickly as possible for as little as possible. The more money they save for the company, the better it looks on their performance review.

You won’t get a fair settlement offer before you have fully recovered from the crash. You don’t know how much more medical care you might need, the complications that could develop, and how much work you will have to miss.

4. Settle Your Vehicle Damage Claim

Your property damage claim can usually be settled within a few weeks if the other driver’s insurance company accepts liability on behalf of their insured.

You can expect the at-fault driver’s insurance company to pay the cost to repair your car, the cost of a rental car while yours is in the shop, or the current book value if it’s a total loss. The book value is not the same as the balance on your car loan, if you have a loan.

If you have collision coverage on your own auto policy, you may decide to have your own insurance company handle your vehicle repairs. In turn, your insurance company will demand reimbursement from the other driver’s insurance company, and may even get your deductible back for you.

No matter how you decide to settle your property damage claim, be sure to read the fine print and understand everything you are given to sign. You don’t want to unwittingly release your personal injury claim when signing the car repair forms.

5. Prepare a Compensation Demand

Settlement negotiations kick off when you send a demand letter to the insurance company, detailing your losses and the amount of compensation you want to settle your claim.

A fair amount to settle a minor to moderate injury claim can be calculated by adding up your economic costs, like medical bills, out-of-pocket costs, and lost wages. Then add one or two times that amount for your non-economic damages, like pain and suffering.

Enclose copies of all your bills, receipts, and a copy of your wage loss verification with the demand letter. Keep the unmarked originals in your accident claim file.

Also include evidence of fault, like witness statements or the police crash report. You can obtain a crash report from the Arkansas State Police for any crash that happened in the state, even when a local police department investigated the accident.

Serious injury claims are best handled by an experienced attorney. Compensatory damages for severe injuries include the cost of future medical care, rehabilitation, future loss of income, replacement services, and a much higher amount for pain and suffering.

While your final compensation may be limited to the available insurance coverage, there are no damage caps in Arkansas. The Arkansas State Constitution specifically prohibits damage caps on personal injury claims.

6. Negotiate a Final Settlement

Rarely will an insurance company respond to a demand letter by issuing a check for the demand amount. You can expect the adjuster to respond to your initial demand by saying they never pay that much for claims like yours, but are willing to offer a much lower settlement amount.

That’s okay. Don’t let them get to you. The adjuster is fishing to see if they can get you upset, or trick you into admitting you’re desperate for money so they can gain an advantage.

Adjusters use many tactics to minimize payouts. They might question the necessity of expensive medical tests, like a CT scan or MRI, or challenge your time off work, saying they aren’t paying for you to have a free vacation.

Take your time. Wait a day or two to respond. Calmly and patiently address each issue one at a time, pointing to your medical records and other evidence to support your position. Make a counteroffer.

Always counter by offering a slightly lower amount than your previous demand. Never negotiate up from the adjuster’s low offer.

Expect to go back and forth with a few rounds of negotiations. Professional negotiators know that both sides must give a little before reaching a compromised settlement.

When you reach an agreement, verify the settlement amount and terms in writing, by email or letter. Take your time reading the formal settlement and release documents. It’s on you to understand what you’re signing. Once you sign and return the settlement agreement, you can’t ask for more.

7. Handle Failed Negotiations

Sometimes, negotiations just fall apart. The adjuster won’t come off an offer you aren’t willing to accept, or the adjuster isn’t responding to your calls or correspondence. Often, hiring an attorney is enough to get the adjuster to make a fair settlement offer.

Most car accident claims settle out of court, but sometimes it takes filing a lawsuit against the at-fault driver to get the insurance company to the bargaining table. Your attorney will continue negotiations right up to the trial date of your court case.

Under Arkansas’ statute of limitations law, most adults have three years from the accident date to settle their injury claim or file a lawsuit against the at-fault party. If you miss the statutory deadline, you can lose your right to recover any compensation.

Most law firms offer free consultations and case evaluations to car accident victims. There’s no obligation, and you’ll be able to discuss the strength of your case and settlement value. Most car accident attorneys will take your case on a contingency fee basis, meaning they don’t get paid unless they settle your claim or win your case at trial.