The state of Arkansas requires that all vehicles be covered by a minimum liability insurance policy that includes both bodily injury and property damage.
Bodily injury pays medical expenses for people who were injured in an accident where the driver was found to be at fault. This may include physician, emergency room fees, hospital stay, medication, diagnostic tests, lab work, medical treatments, medical devices, physical therapy, lost wages, and other medical related expenses.
Full coverage auto insurance is not required in Arkansas, but it is a smart choice for many motorists. There are several choices for various types of coverage that are available:
- Uninsured motorists – They type of insurance provides coverage when the at fault party either does not have insurance or does not carry enough insurance to cover all the damages that they caused. There are three parts to it:
- Bodily injury – Pays for bodily injury damages that the insured and passengers are entitled to by law from the at fault driver who is uninsured or underinsured.
- Personal Injury Protection (PIP) – Pays a portion of medical expenses, and lost wages as well as other necessary expenses.
- Med Pay- Covers medical payments, such as health insurance deductibles and co-pays, visits to a doctor or hospital, X-rays and surgery, ambulance, ect. The coverage takes effect regardless of which driver is considered at fault for the
- 3rd Party Claim- These are generally things such as medical expenses, loss of wages, and compensation for pain and suffering. A third-party claim is commonly referred to as a liability claim because someone else is liable for the injuries suffered by the third party.
Attorney Letter of Protection
A letter of protection is a letter sent by the attorney of an injured party to a medical provider agreeing to pay the medical expenses owed by the patient out of any future recovery whether by settlement or by trial and judgment. It is a contractual agreement that allows the injured person to get the care they need effectively on credit with the creditor (the medical provider) agreeing to wait until the conclusion of the case to demand payment. If the attorney settles the case or obtains a judgment in the case, the attorney then has an obligation to make sure the medical provider’s bill gets settled out of those funds. If there is no recovery (i.e., the injured person goes to trial and loses the case), then the injured person is still responsible for the bill and the medical provider retains the right to pursue them for the full bill just like any other debt.