What Happens When a Car Accident Claim Exceeds Insurance Limits in Arkansas
A serious crash can outrun a small policy in a single afternoon. When the other driver’s insurer has paid everything it owes, the claim is not over. What happens next depends mostly on coverage you choose long before the accident, and Arkansas law treats that coverage better than many drivers realize.
What happens when a car accident claim exceeds the other driver’s insurance limits?
Their insurer pays up to the limit written on their policy, and its obligation for that coverage ends there. The loss above the limit does not disappear. It moves to other coverage, if any exists, and then to the driver who caused the crash.
A limit is a ceiling on the policy
A liability limit is the most an insurer has promised to pay for one accident. Reaching it ends the insurer’s duty to pay under that coverage. It does not erase what the at-fault driver owes. Arkansas uses a fault-based (tort) system, with modified comparative fault under Ark. Code § 16-64-122, so responsibility for the harm stays with the driver who caused it.
Arkansas’s floor is 25/50/25
State law requires at least $25,000 for injury or death of one person, $50,000 when two or more people are hurt in one accident, and $25,000 for damage to other people’s property. Those numbers are a legal minimum, not a measure of what a serious injury costs. Our Arkansas minimum car insurance guide covers the requirement itself.
The per-accident limit is shared
The per-person figure caps what one injured person can collect for bodily injury. The per-accident figure caps the total for everyone hurt in that crash. Two seriously injured people split it, and the second person does not get a fresh limit.
Property damage is its own limit
Property damage liability has a separate limit. Using it up on a newer vehicle does not reduce the bodily injury limits, and a large injury claim does not reduce the property damage limit.
The coverage that helps most is on your own policy
You cannot choose the other driver’s limits. You can choose your own underinsured motorist coverage, and you can check today whether it is on your declarations page. That one line usually decides how much is available above a small policy.
How does underinsured motorist coverage help when their limits run out?
Underinsured motorist (UIM) coverage pays you when the at-fault driver has insurance but not enough. It is the coverage built for exactly this situation, and Arkansas writes it in your favor in one important way.
Arkansas does not subtract their payment
Under Ark. Code § 23-89-209, your underinsured motorist coverage is not reduced by the at-fault driver’s insurance. The one exception: it will not pay you more than your actual damages. Some states work the other way and subtract the liability payment first, so this rule can make a real difference.
It exists only if uninsured motorist coverage does
The same statute says underinsured coverage is not available unless the policy also carries uninsured motorist coverage. A written rejection of uninsured motorist coverage signed years ago removes both. Our guide to uninsured motorist coverage in Arkansas explains how that rejection works.
A settlement notice step can apply
When the at-fault driver’s insurer tentatively agrees to pay its full limits, the statute describes a written notice to your own UIM insurer by certified mail, return receipt requested, with medical bills and confirmation of the other driver’s limits. If a claim reaches that point, an Arkansas attorney should guide the timing.
Why this matters on local roads
Commutes on I-49 between Bentonville, Rogers, Springdale and Fayetteville put a lot of drivers side by side. The Insurance Research Council estimated 12.1% of Arkansas drivers were uninsured in 2023, about 1 in 8, and a state-minimum policy can be used up by one hospital stay.
What can pay above the at-fault driver’s liability limit?
Several sources may answer above the limit. Which ones exist depends on the facts, which is one reason to report the claim fully and early.
| Source | How it works |
|---|---|
| Your underinsured motorist coverage | Applies when the at-fault driver had coverage but not enough. In Arkansas it is not reduced by what their insurer paid, but it will not pay beyond your actual damages. |
| Your uninsured motorist coverage | Applies when there was no liability coverage at all, and under many policies in hit-and-run cases. It is a separate coverage with its own limit. |
| The at-fault driver’s umbrella policy | A personal umbrella sits above auto and home liability limits and pays once they are used up. Whether one exists comes out during the claim. |
| Other responsible parties | An employer, another driver or another party may share responsibility. Arkansas compares fault among the parties under § 16-64-122. |
| Your personal injury protection and health insurance | Pay medical bills without waiting for fault to be settled. They do not raise anyone’s liability limit, but they reduce what you carry while the claim is open. |
| The at-fault driver personally | Whatever is owed beyond all available coverage. How it is collected is a legal question for an attorney, not an insurance question. |
Can you stack underinsured motorist limits in Arkansas?
It depends on your policy, not on a state rule that allows it. Arkansas courts have enforced clear anti-stacking language. If your policy has clear anti-stacking wording, do not expect limits on several vehicles or policies to combine.
What stacking means
Stacking means adding together the underinsured limits carried on more than one vehicle or more than one policy. Two vehicles at $50,000 each would become $100,000 if the coverage stacked.
Arkansas enforces clear anti-stacking clauses
In Couch v. Farmers Insurance Co. (2008), the Arkansas Supreme Court upheld clear anti-stacking provisions in underinsured motorist coverage and found they did not conflict with § 23-89-209. If you hear that Arkansas simply allows stacking, read your policy before relying on it.
Where to look
The limit of liability section of your auto policy explains how limits apply when you own more than one vehicle or hold more than one policy. If the wording is unclear, ask us to walk through it with you before a claim, not after.
What happens if you cause a crash that exceeds your own liability limits?
Your insurer pays up to your limits, and you can be personally responsible for the rest. That is the main reason to carry more than the state minimum.
You may owe the difference
Regulators describe it plainly: if you cause $250,000 in injuries and your auto bodily injury limit is $100,000, the remaining $150,000 can come from your own assets. Savings, property and future income can all be at stake.
An umbrella adds a layer above auto and home
A personal umbrella pays liability claims after your auto or home limits are used up, up to its own limit. Insurers usually require specific underlying limits before they write one. Our guide on whether a personal umbrella is right for you covers how it fits.
Fault sharing changes the numbers
Under Ark. Code § 16-64-122, an injured person’s recovery is reduced by their own share of fault, and a person whose fault is equal to or greater than the other side’s recovers nothing. A claim that looked larger than a limit can fall below it once fault is apportioned.
Bring in an attorney early
If a claim against you is heading past your limits, tell your insurer and talk with an Arkansas attorney promptly. Judgments, settlements and personal exposure are legal questions, and an insurance agency is not the right adviser for them.
How can you check your coverage before a claim ever exceeds the limits?
Five minutes with your declarations page answers most of these questions. Work through them in order.
- Find the underinsured motorist line.
It may read UIM or be combined with uninsured motorist coverage as UM/UIM. If it is missing, a written rejection is the usual reason, and that rejection likely removed uninsured motorist coverage too.
- Compare it with your liability limits.
Arkansas requires insurers to offer uninsured motorist coverage up to your liability limits. High liability with floor-level uninsured limits is a gap you can close by asking.
- Read the limit of liability section.
That paragraph, not state law, decides whether limits on several vehicles combine.
- Check for an umbrella.
If you carry one, confirm your auto limits meet the umbrella’s underlying requirements so there is no gap between the two layers.
- Ask what higher limits cost.
Higher liability and underinsured limits are priced separately from coverage on your own car. Seeing the numbers side by side is the easiest way to decide.
How much does full-coverage auto insurance cost through Cribb?
Across the carriers we work with, auto policies carrying liability, collision and comprehensive placed through Cribb have averaged $79 to $105 a month.
Cribb’s agency average across full-coverage auto policies we placed. Underinsured motorist limits and an umbrella are priced separately, and what they add varies by insurance company.
The ranges shown here are an average of premium on policies Cribb Insurance Group Inc actually wrote, over the 18 months ending September 2026, across 2,500 policies. They describe what other people paid for their own coverage, not what you will pay. Exclusions, limits and conditions apply, and the insurance company sets your premium after its underwriting review.Your quote depends on your vehicles, drivers, driving and claims history, garaging address, chosen limits and deductibles, and, where the insurer uses it, a credit-based insurance score. This is a planning range, not a quote, and not any carrier’s filed rate.
Find out what sits above your liability limits.
Cribb Insurance Group is an independent agency in Bentonville serving Northwest Arkansas. We compare coverage from multiple insurance companies and show you, line by line, whether underinsured motorist coverage is on your policy, how your limits compare, and what an umbrella would add. Seeing those numbers side by side makes the choice clearer.
Ask Cribby about claims above the limit
Cribby is Cribb Insurance Group’s AI assistant for general insurance questions. Start with one of these, or ask your own. For your own policy, talk with our team.
Want to see what your current policy says? Upload your declarations page to Coverage Compare. It shows your liability, uninsured and underinsured motorist limits side by side and flags coverage that is missing, so you can see what would answer above another driver’s limits.
Use Coverage CompareQuestions about claims above the limits
What happens when a car accident claim exceeds the at-fault driver’s insurance limits in Arkansas?
Their insurer pays up to the limit and its duty to pay under that coverage ends. The rest can be paid by your underinsured motorist coverage, an umbrella the at-fault driver carries, or another responsible party. Anything still unpaid after that can remain the at-fault driver’s personal debt, which is a legal question rather than an insurance one.
What are Arkansas’s minimum liability limits?
Ark. Code § 27-22-104 requires $25,000 for bodily injury or death of one person in one accident, $50,000 for bodily injury or death of two or more people in one accident, and $25,000 for damage to other people’s property. The per-accident figure is shared by everyone injured in that crash.
Does Arkansas reduce underinsured motorist coverage by what the other driver’s insurer paid?
No. Ark. Code § 23-89-209 says underinsured motorist coverage is not reduced by the at-fault driver’s insurance, except to prevent you from collecting more than your actual damages. Some states subtract the liability payment first, so this rule can increase what is available above the limit.
Can I combine underinsured motorist limits on more than one vehicle?
Only if your policy allows it. The Arkansas Supreme Court has enforced clear anti-stacking provisions in underinsured motorist coverage, including in Couch v. Farmers Insurance Co. in 2008. Read the limit of liability section of your policy, or ask us to review it with you.
Do I have underinsured motorist coverage automatically?
Only if uninsured motorist coverage is on the policy. Ark. Code § 23-89-209 makes underinsured coverage available only alongside uninsured motorist coverage, and the insurer must give you the chance to buy it. A written rejection of uninsured motorist coverage therefore removes both. Check your declarations page to be sure.
Can I still recover if I was partly at fault?
Often yes. Under Ark. Code § 16-64-122, if your fault is less than the fault of the party you are recovering from, you recover with your damages reduced by your share. If your fault is equal to or greater, you recover nothing. How fault is apportioned in a real crash is a question for an attorney.
Does an umbrella policy help when auto limits are used up?
Yes, that is its purpose. A personal umbrella pays covered liability claims above your auto and home limits, up to its own limit. It works on the other side too: an at-fault driver’s umbrella can be a source of payment above their auto limits.
Sources we checked for this guide:
- Ark. Code § 27-22-104, minimum liability limits
- Ark. Code § 23-89-209, underinsured motorist coverage
- Ark. Code § 23-89-403, uninsured motorist coverage
- Ark. Code § 16-64-122, comparative fault
- Couch v. Farmers Insurance Co., 375 Ark. 255 (2008)
- Maryland Insurance Administration: umbrella insurance
- Insurance Information Institute: uninsured motorists
Insurance answers you can understand. From a local agency you can know.
We believe good insurance decisions start with clear information. Our Northwest Arkansas insurance guides explain coverage, pricing considerations and policy differences in everyday language, so you can shop with greater confidence.
See what would answer above your limits.
Send us your declarations page or start a quote. We will show you whether underinsured motorist coverage is on your policy and at what limit, how your limit of liability wording treats more than one vehicle, whether an umbrella fits, and how options from multiple insurance companies compare.
A quote is an estimate. It is not a guarantee of final premium, coverage or eligibility. The insurance company sets the actual rate and the actual coverage terms after its underwriting review, and they may differ from any figure shown here. Cribb Insurance Group Inc is an independent insurance agency, not an insurance company. Your insurance company issues the policy and pays covered claims. Coverage cannot be bound, changed or cancelled through this website, email, social media or voicemail, and is not in force until Cribb Insurance Group Inc or the insurance company confirms it in writing. Coverage, eligibility, discounts and prices vary by insurance company, policy and individual situation. Cribb Insurance Group Inc, 1601 SW Regional Airport Blvd, Bentonville, AR 72713, (479) 286-1066.