Types of Compensation after Auto Accident
After a car crash, you may be suffering from significant injuries and your car may be totaled. How will you collect the money you need to recover and rebuild your life? Unfortunately, not all car accident victims are able to collect compensation after a car accident. Collecting compensation depends largely on the type of insurance you carry, the type of insurance the other driver carries, and who is responsible for the crash.
After the uncertainty of an auto accident, you need answers and you need a law firm on your side that can help you find those answers. At Rainwater, Holt & Sexton, our auto accident lawyers can help you collect the compensation you are entitled to, so you can focus on what’s most important – your recovery.
What Your Insurance Will & Won’t Pay For
When you pay for insurance you are entering into a contract with the insurance company. This contract states that as long as you continue to pay your premiums on-time, the insurance company will uphold their end of the agreement and pay for accident damages up to your policy limits. The type of insurance you carry and the limits you’ve chosen will determine what types of damages your insurance company is legally obligated to pay for.
In Arkansas, all drivers are required to purchase a minimum liability auto insurance policy. Your policy must have the following limits to help pay for injuries or property damage:
- $25,000 for bodily injury per person
- $50,000 for total bodily injury per accident
- $25,000 for property damage per accident
What is Liability Insurance?
Liability insurance is coverage to help pay for injuries or property damage to another person after a car accident you cause. Liability insurance does not typically pay for medical costs associated with injuries to yourself after an accident. In order to receive this type of coverage, you must consider purchasing medical payments coverage or personal injury protection (PIP). These additional policies can help you pay for your own medical expenses, as well as the medical expenses of your passengers, in accidents that you cause. Optional PIP is available for purchase in Arkansas.
What is Collision Insurance?
Collision insurance is coverage that helps to pay for damage done to your car. It is an optional property damage insurance that will pay to repair or replace your vehicle if it’s damaged from a collision with another vehicle, another object (such as a tree or mailbox) or damage from a single car accident. It does not pay for damage done to your vehicle that is not related to driving, nor does it cover damage to another person’s vehicle.
What is Comprehensive Insurance
Comprehensive insurance is coverage that helps pay for non-collision damage to your vehicle, such as damage resulting from fire, theft, or inclement weather. Comprehensive coverage is optional in Arkansas; however, the lender of your financed car may require you to purchase this type of insurance or they may purchase it for you and send you the bill.
What is UM/UIM Insurance
Uninsured/Underinsured motorist (UM/UIM) insurance is coverage that helps to pay for injuries or damage resulting from an accident with a driver who does not carry their own insurance policy or doesn’t carry enough insurance to pay for your damages. This is optional but highly recommended insurance coverage that is offered in the state of Arkansas.
Types of Compensation You May Be Entitled To
In Arkansas, accident victims are allowed to recover both economic and non-economic damages from the “at-fault” driver’s insurance policy. Economic damages are those damages that can be quantified and are based on financial losses, such as medical expenses or lost wages. Non-economic damages are those damages that are not easy to quantify, such as pain and suffering or decreased quality of life.
Current & Future Medical ExpensesAfter an auto accident, accident victims may find themselves on a long road to recovery. This may include significant time in the hospital, as well as additional months undergoing rehabilitation. Injured accident victims are eligible to receive compensation for their medical expenses, as well as any future medical expenses that may be anticipated, such as additional corrective surgeries or on-going medications. Your attorney will need to speak with your doctor to help determine the amount of medical costs you may bear both now – and in the future.
Current & Future Lost WagesAccident victims are also eligible to recover money for any lost wages they’ve suffered due to the accident. Being unable to work and provide for your family can be stressful, especially for families who are already living paycheck to paycheck. If your injury is expected to prevent you from working full-time or if you have suffered a permanent disability, you are entitled to recover the loss of all future wages you are now unable to earn as a result of your accident.
Property DamageIf another person’s negligence has damaged your car or motor vehicle, you are eligible to be compensated for that loss. Damages could include the cost of repair or replacement if necessary. After an accident it is a good idea to get a quality estimate on what it will truly take to repair your car. Your estimated quote should be an amount that is sufficient to repair your vehicle to the highest standards.
Pain & SufferingAfter an accident, you are entitled to seek compensation for the pain and suffering you’ve endured as a result of your injuries. This could be money to compensate you for mental anguish, PTSD, depression, and the physical pain you’ve suffered. It can be difficult to put a dollar value on pain and suffering and insurance companies work very hard to limit the amount of non-economic damages they pay.
We’re There When You Need Us
Being involved in an auto accident is terrifying and can cause significant financial burdens to you and your family. Arkansas law allows accident victims to collect specific types of compensation after an accident and contacting an experienced attorney can help.
With four offices in Arkansas—Little Rock, Fayetteville, Conway, and Hot Springs—our accident lawyers are easily accessible from the moment you are injured. Fill out a free contact request form, which only takes a minute, or simply dial (800) 767-4815 and tell us your story.