Arkansas law requires that every policy of motor vehicle insurance issued in Arkansas contain first party coverage (medical pay and disability income), unless the person taking out the policy rejects these coverages in writing. It is never a good idea to reject these coverages, even if you have health insurance and other disability insurance.
If you do obtain med pay coverage, the insurance company is required to pay up to $5,000 in medical benefits, or more if you have higher limits, on any injured passenger in the vehicle at the time of an accident. This is a no-fault provision which means the company has to pay, regardless of who caused the accident.
Med pay is very important, especially when the other party is at fault and has insurance coverage. If you settle your bodily injury claim against the other driver and his/her insurance company, it is highly unlikely that you would ever have to repay or reimburse your own insurance company for the medical bills that they pay. There is a limited exception to this, but it is unusual to encounter such exception. If you don’t have to reimburse your insurance carrier for the medical benefits that are already paid, then it is easier to settle your bodily injury claim since medical bills up to $5,000 have already been paid and do not have to be paid out of the settlement.
A lot of insurance companies disregard the Arkansas law, especially when the injured party does not have a lawyer, and demand reimbursement for med pay benefits they have paid. The major car insurance companies in Arkansas have illegally demanded and recovered millions and millions of dollars by making claims for reimbursement of med pay benefits from the settlement money received from the at-fault party. Many accident victims without counsel get stuck with reimbursement when the insurance companies decide to take advantage of you
At NOLAN CADDELL REYNOLDS, we are trying to recover as much as we can of this money that was illegally recovered from insurance companies. If you were injured in a car accident and your own insurance carrier paid medical benefits and was then reimbursed for these payments out of your settlement with the at-fault driver and his/her insurance carrier, call us now.