Kentucky’s No Fault Insurance System

Kentucky is one of a small number of states that operate under a no-fault car insurance system. Under this system, injured drivers typically seek compensation through their own insurance policy first—regardless of who caused the accident. This structure is designed to provide faster access to medical and wage benefits after a crash.

However, Kentucky’s no-fault rules do not prevent all lawsuits. In serious cases, injured victims may step outside the no-fault system and pursue compensation from the at-fault driver with help from a Lexington car accident lawyer.

What Is Personal Injury Protection Coverage?

Under Kentucky insurance law, every driver must carry at least $10,000 in personal injury protection (PIP) coverage. This allows you to get immediate financial relief from your medical bills without the need for lengthy litigation or determinations of fault through the other driver’s insurance. PIP coverage typically compensates you for medical expenses, lost pay, and any essential out-of-pocket costs directly associated with your injuries.

While $10,000 can seem like a large amount of money, medical bills and lost pay adds up quickly. Drivers can purchase higher insurance coverage to provide an additional safety net, but may opt not to due to costs. Motorcyclists are exempt from this mandatory coverage and may have to go directly to civil court to receive compensation for serious injuries.

The Choice No-Fault Threshold

Kentucky law sets a threshold that, once met, allows a victim to step outside the no-fault system and directly file a liability claim or lawsuit against the negligent driver. Under the Kentucky Department of Insurance guidelines, you can pursue a claim against the at-fault party if your accident results in:

• Over $1,000 in medical expenses
• A broken or fractured bone
• Permanent disfigurement or lifelong injury
• The death of a family member

Choosing to opt for this method of recovery blocks you from collecting PIP from your own insurer, but allows you the right to sue.

Benefits and Disadvantages of the Kentucky No-Fault System

The no-fault model reduces the burden on the court system and allows you to receive financial support for your medical care quickly. You are covered, no matter if you shared any amount of fault for your accident, in an efficient manner.

This system does come with its downsides, such as higher premiums due to mandated PIP coverage without fault determination. No-fault systems also limits recovery unless the threshold is met to pursue the at-fault driver for additional compensation.

Navigating the Claims Process in a No-Fault State

If you are involved in a car accident in a no-fault state, you will be immediately covered by your PIP coverage as the primary payor towards medical bills and lost wages. PIP does not compensate you for non-economic damages such as pain and suffering or lost earning potential, however.

If you meet the Kentucky tort threshold, you may file a claim with the at-fault driver’s insurance or sue for additional damages. Working with an experienced Kentucky personal injury lawyer can help you determine the best next step in your case.