In Arkansas, all policies come with Med Pay – which stands for Medical Payments Coverage – unless you reject it in writing. The easiest way to describe Med Pay is that it’s like a mini-health insurance policy attached to your car insurance. Usually, it is $5,000 of coverage that you can use whether somebody hits you and they are at fault or if you cause an accident and you are at fault. It can be for your hospital bill, chiropractor, physical therapy appointments, or anything you need to help with your injury claim. That’s $5000 that you get to use regardless of fault.
Your Med Pay pays up to $5000, so it paid off $4000 of your medical bills. When it comes time to present your claim to the other person’s insurance, you still get to submit your claim’s total value, which is $4000. When you get your settlement, you don’t have any medical bills to pay, so that’s just money that goes back into your pocket to help with your lost wages or any pain and suffering. That adds to the property damage, making your injury claim a lot more valuable for you. You will get more money because you were smart and had insurance of your own to help protect you if somebody hits you. Medical Payments Coverage is precious in that it reduces the number of bills you will owe whenever you get your settlement from the other person.
Is Gap Insurance Available In Arkansas?
Gap insurance can often be very confusing unless you have had prior experience with it. However, there is gap insurance in Arkansas that will pay your car off if you are underwater on it. For example, if a vehicle is worth $10,000 and you owe $12,000 on it. If they total your car, they only pay the $10,000 that it’s worth, but you still owe that finance company $2000. If you’ve got gap insurance, it will pay the $2000 extra you owe, and you start above water again for your next car.
Additional Information On Auto Accidents In Arkansas
Many people wonder when the car can be totaled, and it is very fact-specific. In Arkansas, if it costs more than 70% of the vehicle’s value to fix it, then the insurance company totals it. It is essential to know that if you get to that 70% mark from your car’s value, they’ll total it, and in that case, buy your vehicle from you. If this is the situation, it’s like they bought your car a second before the accident happened.