When you’re injured in a car accident, one of the first questions that comes up is how your medical bills and other expenses will be covered. States differ in their approach, with some following “at-fault” rules and others following “no-fault.” Kentucky is unique because it uses a choice no-fault system, meaning drivers can decide which system applies to their insurance coverage.
Yes, but probably not in the way you think. When it comes to car wrecks, people can be found at fault. So why do people say Kentucky is a No-Fault state? That’s because Kentucky law requires insurance companies to provide No-Fault insurance benefits as part of their car insurance policies. While drivers can reject these no-fault benefits, most do not. They’re called No-Fault because these benefits are available to anyone injured in a wreck, regardless of fault. Even if you don’t own a car and are injured, you may be entitled to these No-Fault benefits. You may have heard of these No-Fault benefits as Basic Reparations Benefits, or more commonly, Personal Injury Protection (PIP).
Under Kentucky’s no-fault system, your own insurance through Personal Injury Protection (PIP) coverage pays for medical bills, lost wages, and related expenses after an accident, no matter who caused it. However, PIP does not cover property damage, and it generally limits your ability to sue the at-fault driver for injuries. Drivers who reject no-fault coverage can pursue claims against the responsible party without these restrictions, but they give up the guaranteed immediate benefits of PIP.
Even if you keep no-fault coverage, Kentucky law allows you to step outside the system in certain cases. If your medical expenses exceed $1,000, or if you suffer permanent injury, disfigurement, or loss of bodily function, you may file a lawsuit against the at-fault driver. This exception ensures that seriously injured victims can still seek full compensation.
Understanding Kentucky’s unique insurance rules can be confusing, especially after a stressful car accident. The experienced attorneys at Becker Law Office can guide you through your options and fight for the compensation you deserve. Contact us today for a free consultation.
Image credit: // Shutterstock // Phanphen Kaewwannarat
