Arkansas is one of only two states with a statute on the point. That makes a diminished value claim in Arkansas easier to explain to an adjuster, because the law says how to measure harm to a car.
The Arkansas Statute on Car Damage
Under Ark. Code § 27-53-401, damage to a motor vehicle is measured as the value just before the crash minus the value after. Loss of use is added on top. A report by the Connecticut legislature's research office named Arkansas and North Dakota as the only two states with related statutes.
Courts read it the same way. Take MFA Insurance v. Citizens National Bank of Hope, from 1977. When repairs do not restore the car, the court said, you measure its value before the crash and after the repairs.
Proving the Before and After Value
The statute does not do the math for you. You still have to show what the car was worth on both dates. A diminished value appraisal that uses local sales is the usual proof.
Your own insurer is a different question. The Matthiesen, Wickert & Lehrer survey of all 50 states lists no Arkansas case that settles a claim on your own policy. Read the policy wording first.
The Fault Line Sits at Half
Arkansas compares fault. Under Ark. Code § 16-64-122, you recover only if your fault is of a lesser degree than the other side's. Your award then drops by your share. A finding of equal fault leaves you with nothing.
Three Years and the Money Limits
The deadline comes from Ark. Code § 16-56-105, which gives three years for actions for injuring goods or chattels. A car counts as goods here.
The minimum property damage limit is $25,000 per accident, as Nolo's Arkansas guide sets out. A bare policy will not pay past that for one crash.
Small claims court handles property claims of $5,000 or less, according to the Arkansas Attorney General. If the insurer drags its feet, the Arkansas Insurance Department takes complaints online. You can also compare the Texas rules next door.