Is Kentucky a No-Fault State?
April 30, 2024
As of 2024, Kentucky is a “choice no-fault” state. By default, drivers are covered by Personal Injury Protection insurance (PIP), which covers medical expenses, lost wages, and other costs related to injuries following an auto accident, regardless of who is at fault. However, because Kentucky is a “choice no-fault” state and not a “pure no-fault” state, drivers can opt out of PIP coverage if they choose to do so.
Your guide to Kentucky no-fault laws
The benefits of Kentucky no-fault coverage
How does no-fault work in Kentucky?
What does PIP insurance cover?
How does PIP work in Kentucky?
What is the Kentucky no-fault threshold?
What is Kentucky no-fault rejection?
Why would someone reject no-fault?
Does no fault insurance cover property damage?
What is the statute of limitations for no-fault in Kentucky?
How a no fault car accident lawyer can help after a wreck
The benefits of Kentucky no-fault coverage
Kentucky’s Motor Vehicle Reparations Act (KRS 304.39), or No-Fault Law, was enacted in 1975. Kentucky’s No-Fault laws address two major points:
- Personal Injury Protection Coverage (PIP coverage)
- Tort Rights (limitations on an individual’s right to sue and be sued)
This law is intended to allow for faster claims processing by eliminating the need to determine fault in minor accidents, reduce litigation costs by avoiding lengthy court battles to determine fault, and to provide protection for all drivers under PIP coverage to help pay medical bills after a car accident.
Additionally, the no fault system puts limitations on an individual’s right to sue and be sued (tort rights).
The first thing to understand about the no fault system is that you can opt out, however, by default, you are opted into PIP coverage, which means that you need to meet specific criteria to sue the other driver or negligent party.
How does no-fault work in Kentucky?
Kentucky’s no-fault laws work a bit differently than traditional no-fault states. In Kentucky, all drivers (excluding motorcyclists) are automatically enrolled in no-fault insurance with Personal Injury Protection (PIP) coverage. This means your own insurance pays for your medical bills and lost wages (up to a limit) after an accident, regardless of who caused it.
What does PIP insurance cover?
Kentucky’s PIP insurance follows the general guidelines of PIP coverage but with some specific details:
- Medical Expenses: PIP in Kentucky covers up to $10,000 in medical bills for each person in the car at the time of the accident. This applies to everyone, including the driver and any passengers who were injured in the crash. There’s a caveat though – the total expenses must exceed $1,000 before PIP kicks in.
- Lost Wages: Kentucky PIP offers limited coverage for lost wages due to injuries. It provides a maximum of $200 per week, or 85% of your normal income, whichever is less.
- Other Expenses: Some Kentucky PIP policies may also cover essential services or funeral expenses in the case of wrongful death, but these are not mandatory inclusions and you’d need to check your specific policy details.
How does PIP work in Kentucky?
If you’re injured in an accident, you would file a claim for Personal Injury Protection (PIP) benefits with the insurance of the vehicle you were in at the time of the accident. If you were a pedestrian, you’d file the claim with the insurance of the vehicle that hit you.
If you own the vehicle in which you were injured but don’t have insurance coverage, you won’t have access to PIP benefits. However, if you were a passenger in an uninsured vehicle, you can seek coverage from other vehicle policies.
If no other policy is available, you should file a claim for basic PIP through the Kentucky Assigned Claims Plan.
What is the Kentucky no-fault threshold?
Kentucky no-fault thresholds refers to the minimum level of injury or expense required to sue the at-fault driver after a car accident, even if you have PIP coverage. In other words, if your injuries or expenses fall below this threshold, you generally cannot sue the other driver for your injuries and will rely on your PIP coverage.
Kentucky no-fault threshold:
- Medical Expenses: Your medical bills resulting from the accident must exceed $1,000 before you can sue the at-fault party.
- Serious Injuries: Even without reaching the $1,000 medical expense mark, you can sue the at-fault driver if the accident caused:
-
- Permanent disfigurement
- A fracture of a weight-bearing bone (like your leg or hip)
- Any other type of permanent bone fracture (even non-weight bearing)
- Permanent injury
- Permanent loss of a bodily function
If you experience any of these serious injuries, regardless of medical expenses, you have the right to sue the at-fault driver for your damages. A no fault car accident lawyer can help you through this process.
Remember: Kentucky operates as a “choice no-fault” system. Drivers can opt out of PIP coverage altogether. If a driver opts out, they wouldn’t have the $1,000 threshold limitation and could sue for any injury, as long as they can prove fault.
What is Kentucky no-fault rejection?
In Kentucky’s “choice no-fault” car insurance system, a Kentucky no-fault rejection allows drivers to opt out of Personal Injury Protection (PIP) coverage.
What it means to reject no-fault in Kentucky:
- Default is PIP: By default, all Kentucky drivers are enrolled in no-fault insurance with PIP coverage. This means your own insurance company pays for your medical bills and lost wages (up to a limit) after an accident, regardless of fault.
- The Choice to Opt Out: A Kentucky no-fault rejection form (PDF) allows you to specifically reject PIP coverage. This essentially means opting out of the no-fault system and its benefits.
Why would someone reject no-fault?
A driver might choose to reject PIP coverage for cost savings. PIP can add to your insurance premium. Drivers with a clean driving record might believe they are less likely to be at fault in an accident and choose to forgo PIP to save money.
Things to Consider Before Rejecting No-Fault:
- Risk vs. Reward: While you might save money upfront, the risk of being in an accident and having significant medical bills without PIP coverage can be financially devastating.
- Serious Injury Threshold: Even if you reject PIP, Kentucky’s no-fault threshold still applies. You’ll need to reach a certain level of injury severity (or medical expense) to sue for full damages.
- Loss of Guaranteed Coverage: With PIP, you have guaranteed coverage for your own medical expenses, regardless of fault. Rejecting PIP means relying on the at-fault driver’s insurance and potentially facing a lengthy legal battle, especially if the other driver is uninsured or underinsured.
Overall, Kentucky no-fault rejection gives drivers more control over their car insurance but it’s important to think about both the risks and benefits before making a decision to opt out.
Even if you decline pip coverage, Kentucky still requires you to hold insurance with the following minimums:
- Bodily injury liability coverage: $25,000 per person
- Property damage liability coverage: $10,000 per accident
- Alternatively, a policy with a single limit of $60,000.00 is acceptable
Additional reading: Can someone sue you for a car accident if you have insurance?
Does no fault insurance cover property damage?
PIP coverage only handles injury claims. However, if you’re a victim of a negligent driver, you can still file a claim for property damage. Kentucky requires that all drivers to hold property damage liability coverage for up to $10,000 per accident.
What is the statute of limitations for no-fault in Kentucky?
In a typical no-fault insurance claim, you rely on your own “personal injury protection” coverage after an accident, no matter who was at fault. However, because Kentucky is a no fault insurance state, if your injuries are severe enough, you may be able to sue the at-fault driver.
According to Kentucky law (section 304.39-230), you have two years to file your car accident injury claim. This two-year period starts from either the date of the accident or the date of your last “personal injury protection” car insurance claim payment, whichever is later.
If you fail to file a claim within the two year limit, you will not be able to seek compensation for your damages under Kentucky no fault rules.
A no fault car accident lawyer can help you recover every dollar you deserve
If you’ve been injured in a crash that wasn’t your fault, contact an experienced Kentucky personal injury lawyer today. Hughes & Coleman Injury Lawyers have served injured victims in Kentucky for over 35 years handling liability claims and helping survivors get every dollar they deserve from the insurance company.
There’s never a fee to talk with our legal team about your options and we never get paid unless we recover money for you.
Call us today for a free consultation at 800-800-4600.
