Arkansas Car Insurance Claim Laws

How long insurers have to handle your car insurance claim in Arkansas, when a car counts as a total loss, and what to do if the insurer falls behind.

Last reviewed October 24, 2026 by Ali Ahmad, MyAutoTriage editor.

Short answer

In Arkansas an insurer must acknowledge your claim within 15 working days, accept or deny it within 15 working days after proof of loss, and pay within 10 working days after the claim is ready for payment. Total loss rule: repairs cost 70% or more of the car's actual cash value. Deadline to file an injury lawsuit: 3 years.

Claim-handling deadlines in Arkansas

Acknowledge your claim	15 working days
Accept or deny it	15 working days after proof of loss
Pay after agreement	10 working days after the claim is ready for payment

Rule: Ark. Ins. Dept. Rule 43, 054.00.15 Ark. Code R. § 005, §§ 7(a), 7(c), 8, 9(a), 9(f); Ark. Code Ann. § 23-66-206(13).

The decision clock usually starts once the insurer has the proof of loss it asked for, not on the day of the accident. Ask the adjuster in writing what they still need, and keep a dated log of everything you send.

When a car is totaled in Arkansas

Repairs cost 70% or more of the car's actual cash value.

Example: for a car worth $15,000, a repair estimate of $10,500 or more (70%) makes it a total loss.

Rule: Ark. Code Ann. § 27-14-2301; DFA Rule 2007-8, 006.05.07 Ark. Code R. § 007.

If the insurer misses a deadline or lowballs you

Send a short written follow-up that names the deadline and asks for a decision by a specific date.
If the offer is low, answer with evidence: repair estimates, comparable cars for sale, receipts.
Still stuck? File a free complaint with the Arkansas Insurance Department.

If you have to sue the other driver in Arkansas

Most claims settle without a lawsuit, but these rules decide how much leverage you have when you claim against the at-fault driver's insurer.

If you were partly at fault	Modified comparative fault (50% bar)
Deadline to sue for injuries	3 years
Deadline to sue for car damage	3 years

Your recovery is cut by your share of the fault, and you get nothing if you are 50% or more at fault.

The lawsuit deadline (statute of limitations) usually runs from the accident date, and an open insurance claim does not pause it.

Rules: Ark. Code § 16-64-122; Ark. Code §§ 16-56-105, 16-116-103.

Sales tax and fees on a total loss in Arkansas

Cash settlement must include taxes, license fees and other fees, itemised; same rule for third-party claims. Rule: Ark. Admin. Code 054.00.43-10.

Total loss tax and fee rules in every state

Diminished value in Arkansas

From the at-fault driver's insurer: Yes, if you can prove it. MFA Ins. Co. v. Citizens Nat. Bank, 545 S.W.2d 70 (Ark. 1977): if repairs don't restore value, the before-and-after difference.
From your own insurer: Not settled; depends on your policy. No ruling on auto policy wording.

Diminished value rules in every state

Claim laws in nearby states

If the accident happened in another state, or the other driver is insured there, these rules may matter too:

Texas: 100% of value; decision within 15 business days after final proof of loss
Louisiana: 75% of value; decision within 30 days after proof of loss (written offer)
Missouri: 80% of value; decision within 15 working days after claim forms are submitted

Free tools for your claim

Not legal, financial, or insurance advice. This page summarises rules and data for general education only. Insurance laws, deadlines, and formulas vary by state, by policy, and by insurer, and they change over time. Verify anything important with your insurance policy, your state department of insurance, or a licensed attorney before relying on it. Some of these rules apply only to certain claim types.

Frequently asked questions

How long does an insurance company have to pay a claim in Arkansas?

In Arkansas the insurer must accept or deny the claim within 15 working days after proof of loss, and pay within 10 working days after the claim is ready for payment. The clock generally starts once the insurer has the proof of loss it asked for, so keep a dated record of what you sent.

When is a car considered totaled in Arkansas?

In Arkansas: repairs cost 70% or more of the car's actual cash value. You can challenge the actual cash value the insurer uses.

How long do I have to sue after a car accident in Arkansas?

In Arkansas you generally have 3 years from the accident to file an injury lawsuit and 3 years to sue for damage to your car. An insurance claim does not pause this deadline, so if talks drag on, check the date and speak to a lawyer well before it passes.

Can I recover if I was partly at fault in Arkansas?

Arkansas follows modified comparative fault (50% bar). Your recovery is cut by your share of the fault, and you get nothing if you are 50% or more at fault.

What can I do if my insurer misses a deadline in Arkansas?

Send a written follow-up citing the rule and asking for a decision by a specific date. If that fails, file a free complaint with the Arkansas Insurance Department; a pattern of missed deadlines can also support a bad-faith claim.