Because Arkansas is a no-fault state, an at-fault driver is responsible for the other party’s property damage only up to $25,000 or their medical costs over $50,000 per accident. However, to make it easier for victims to get compensated, PIP can cover medical expenses, death benefits, and wage losses, regardless of fault.
What Is No-Fault Insurance?
No-fault insurance, as opposed to liability insurance, means each party has the option to be responsible for its own medical costs, regardless of fault, aside from the other party’s bodily injury coverage. With PIP, the no-fault driver won’t have to prove that the other driver was at fault in order to be medically compensated. Rather, they can cover their own medical costs, deaths, and lost wages through PIP.
At-Fault vs. No-Fault
In contrast to no fault, at-fault states have medical payments coverage instead of PIP. It does not include reimbursements for lost wages and child care. The at-fault driver is responsible for the other party’s injuries and property damage. If the victim does not agree with their payout, they can sue for both economic damages and non-economic damages, like pain and suffering.1
||Personal injury protection
||Medical payments coverage
|Pays for your medical expenses, regardless of fault
|Covers lost wages and child care
How No-Fault Claims Work
If you got into an accident that wasn’t your fault, you would file a third-party claim with the at-fault party’s insurer for your property damages and bodily injuries (although you’d have to prove fault). But if you or any of your passengers had injuries and you wanted to get compensated sooner, you could file a first-party insurance claim with your provider to get auto insurance coverage under PIP insurance, assuming you had this policy.
Modified Comparative Negligence
Arkansas’ modified comparative negligence laws mean that for someone to receive compensation for their losses in a civil suit, they must be less than 50 percent at fault.2