Does Arkansas Have No-Fault Coverage?

Does Arkansas Have No-Fault Coverage?

Getting into an accident can seem like the end of the world. The risk of serious injuries, including the mental scars they leave, thousands of dollars in your own vehicle’s repair costs, and potentially having to cover someone else's medical or auto expenses can make for a pretty expensive mistake. What can make it more stressful, however, is if there is no clear fault present.

Following an accident, it is imperative to know who will cover any costs associated with it, so insurance companies, law enforcement, and the court often have to determine who is at fault. The person who is deemed responsible will have to work with their insurance provider to cover any injuries and car damages.

However, sometimes there is no clear way to determine this, so many providers have started including "no-fault coverage” into their comprehensive packages.

What is No-Fault Coverage?

According to the Insurance Information Institute, no-fault insurance, also known as personal injury protection insurance (PIP) or medical payments coverage (MedPay), is an add-on to your policy that would allow for appropriate coverage of expenses for passengers, regardless of who is at fault in an accident. While there are currently only 13 states that require having this coverage, several others still offer it as a safeguard.

Here are a few examples of what it can be used for:

  • Any medical expenses or hospital bills associated with the accident
  • Loss of income
  • Funeral costs
  • Services you can no longer perform, like landscaping, cleaning, or childcare

It’s important to note that this coverage does not include any damages to the actual vehicle, as that is a part of the collision or liability coverage already included in your comprehensive plan.

How This Applies to Arkansas Motorists

Arkansas is one of 21 states that has a mandatory offering policy for "no-fault" insurance in addition to your standard car insurance plan. This means that while insurance providers are required to include it as part of your package, motorists can choose to opt out at signing. You can do so by submitting a written policy rejection to the respective insurance agency.

However, it is often encouraged that motorists who routinely spend a significant amount of time on the roads, or employers who require travel, consider keeping this in their package.

How Much Does It Cost?

Since only certain states require that this be included in your plan, there is no blanket minimum cost for coverage. The minimum may vary depending on the insured's age, location, make and model of the vehicle, and several other factors. Across the United States, this requirement ranges anywhere from $3,000 (Utah) to $50,000 (New York).

Along with this, Arkansas does not have a minimum coverage requirement at all because motorists can choose to opt-out. They are required to at least offer $5,000 in coverage.

Is There a Difference Between Personal Injury Protection and Medical Payments Coverage?

Although many use these terms interchangeably because they are often packaged together, PIP and MedPay can differ in terms of what they cover and where they are available.

The main difference in coverage is that MedPay can only be used to cover medical expenses for drivers and passengers, while PIP can include lost wages, funeral expenses, and childcare.

Another significant difference is that MedPay is not automatically offered everywhere and is only required in one state - Vermont; anywhere else is considered optional. While you can always choose to add it to your coverage plan, it might be something you have to ask for. Motorists insured in Oregon, North Dakota, Minnesota, Delaware, and New York are likely not to be offered it.

However, those insured in Arkansas would be offered PIP and MedPay under the same umbrella with the minimum $5,000 coverage.

Injured in an Arkansas Car Accident? Our Attorneys Can Help

Since 1987, the team at Easley & Houseal, PLLC has been advocating for victims who have been injured or lost loved ones in car accidents caused by negligent drivers. With over $50 million+ in damages recovered for clients, our attorneys are committed to receiving maximum compensation for our clients.

If you or a loved needs representation following a motor vehicle accident, contact our attorneys to schedule a consultation by calling (870) 330-0015 or visiting our website.


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