Who Pays for Car Damage in a No-Fault State?

The phrase “no-fault” often causes confusion for drivers in Little Rock, especially when they ask who pays for car damage in a no-fault state. Although the term suggests a different approach to responsibility, these systems only change how medical bills are handled. PIP pays each driver’s medical expenses, while the at-fault driver’s property damage liability insurance still covers the other person’s vehicle repairs, which means financial responsibility for the crash still determines who pays for the damage. 

As a Little Rock car accident lawyer team, Taylor King Law helps drivers make sense of these distinctions and understand how they compare to Arkansas’s at-fault system.

What’s the Difference Between No-Fault Insurance and Arkansas’s At-Fault Insurance System?

Arkansas follows an at-fault insurance system, which is very different from the no-fault model used in some states. Many drivers want to understand how no-fault systems work, but the main distinction is straightforward. In no-fault states, each driver’s PIP coverage handles their medical expenses after a crash. Vehicle repairs are treated differently, and the driver who caused the accident is still responsible for the other person’s property damage.

Under Arkansas Code Section 27-22-104, drivers must carry minimum liability coverage that includes $25,000 for property damage, $25,000 for bodily injury or death of one person, and $50,000 for bodily injury or death of two or more people in a single accident. These requirements ensure that when a driver causes a collision, there is insurance available to cover both the other person’s vehicle repairs and their medical losses. Together, these limits support Arkansas’s at-fault structure and clearly outline financial responsibility after a car accident.

Filing a Claim for Your Car Damage

After a car accident in Little Rock, the process of filing a claim for vehicle damage depends on who is at fault. If the other driver caused the crash, you would typically file a claim through their property damage liability coverage. This coverage is designed to pay for the repairs, replacement parts, towing, and, in some cases, the total loss value of your vehicle.

In Arkansas, this process is straightforward because the at-fault driver’s insurance is responsible for paying for the damage. However, if you were in a no-fault state, your own insurance would handle medical expenses through PIP, but who pays for car damage in a no-fault state still depends on the at-fault driver’s property damage liability insurance, not PIP.

When we assist clients with their claims, we gather key evidence such as accident scene photos, repair estimates, and the police report to support the claim. This evidence helps establish fault, making it easier to ensure that the insurance company evaluates the claim properly and covers the necessary repairs.

When Your Insurance Covers the Damage

Some drivers opt to have their own insurance handle the repairs, even if they weren’t at fault for the accident. This is common when a driver has collision coverage and wants to get their car fixed quickly without waiting for the other driver’s insurance to accept liability.

If you go this route, your insurer may cover the repairs upfront and then seek reimbursement from the at-fault driver’s insurance. In no-fault states, your insurer might also handle property damage claims, but it’s important to note that no-fault insurance only covers medical expenses, not vehicle repairs.

In Arkansas, using your own collision coverage can be a smart choice if the other driver is uninsured or slow to provide the necessary information. You may need to pay your deductible initially, but your insurer may recover that amount through subrogation once the at-fault driver’s liability is established.

Using the At-Fault Driver’s Insurance in Certain Situations

When another driver is responsible for the collision, their liability insurance becomes the primary source for repairing your vehicle. This coverage is intended to address the damage caused by their actions, including the cost of repairs, the value of a totaled vehicle, rental car expenses, towing, and any reasonable storage fees.

Issues can arise when an insurer questions the extent of the damage, delays accepting liability, or disputes part of the estimate. In these situations, clear documentation plays an important role. Evidence such as the police report, photographs of the scene, repair evaluations, and statements from anyone who witnessed the accident can help support your claim and reduce opportunities for the insurer to undervalue or delay payment.

Providing complete and accurate information helps move the process forward and gives the insurer what they need to assess the claim properly.

What Happens If There’s a Dispute Over Payment

Disagreements often arise over fault, repair estimates, or whether a vehicle should be considered a total loss. Arkansas law addresses these issues through Arkansas Code Section 16-64-122, the comparative fault statute, which allows liability to be divided based on each party’s contribution to the accident. This rule applies to both injury claims and property damage assessments.

If a driver is found partially responsible, their recovery may be reduced by their percentage of fault. If they are at least equally responsible, they may be barred from recovering damages altogether. This concept affects car damage claims directly. For example, if another driver caused the accident but you were found to be slightly negligent, the repair costs may be reduced based on your share of fault.

When a dispute arises over the valuation of repairs or the cause of the accident, we help gather the necessary evidence, communicate with adjusters, and advocate for a fair outcome. This avoids situations where drivers feel pressured to accept reduced payments or inaccurate assessments.

Contact a Little Rock Car Accident Lawyer

Navigating insurance rules and repair costs after a collision can be overwhelming, especially when you’re unsure who pays for car damage in a no-fault state or how Arkansas law applies to your case. You deserve clear answers and the support to protect your rights. At Taylor King Law, we are committed to being on your side, by your side every step of the way. 

For a free consultation, call 501.712.2554 today and let us guide you through the process.

Awards and accolades