Kentucky No-Fault Car Insurance Rules | Nolo

Kentucky is a “no-fault” state when it comes to auto insurance coverage and injury claims after a car accident. here’s what you need to know:

  • With no-fault auto insurance, your own insurance policy covers your medical bills and other financial losses after a car accident, regardless of who caused the accident.
  • You can opt out of the Kentucky no-fault system, preserving your right to sue an at-fault driver after a car accident.
  • Vehicle owners in Kentucky are required to carry certain minimum amounts of auto insurance, including liability coverage.
  • “no fault choice” car insurance in kentucky

    Kentucky is one of about a dozen states that follow some variation of no-fault auto insurance for car accident injury compensation purposes. In a traditional no-fault state, each driver looks to their own auto insurance policy to recover compensation for medical bills and other financial losses stemming from the accident, regardless of who was at fault. liability cannot be claimed against the at-fault driver unless the circumstances allow a no-fault exemption from the system (more on these circumstances later).

    Reading: How does no fault insurance work in kentucky

    what does kentucky no-fault auto insurance cover?

    in kentucky, no-fault takes the form of “personal injury protection” (pip) benefits, which pay up to $10,000 for:

    • medical bills resulting from car accident injuries
    • lost wages, and
    • similar out-of-pocket costs resulting from the accident, that is, the cost of hiring someone to do housework that you are unable to do because of your injuries.
    • Please note that higher benefits (beyond the base $10,000) are available at an additional cost when you purchase a Kentucky auto insurance policy.

      who is covered by kentucky no fault auto insurance?

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      After an accident, not only the policyholder is entitled to pip benefits in kentucky. other covered people include:

      • anyone who was driving or riding in the vehicle at the time of the accident, and
      • a pedestrian or bicyclist struck by the covered vehicle.
      • reject car insurance at no fault in kentucky

        vehicle owners can essentially “opt out” of the system at no fault when choosing and purchasing a kentucky auto insurance policy. By opting out, the policy purchaser retains the right to file a liability claim or personal injury lawsuit against the at-fault driver.

        Of course, by opting out, the policyholder also exposes himself to the risk of being sued, if found to be at fault for the accident. That’s why Kentucky’s system is known as a “no-fault election.” But remember, by electing no-fault, you are not entitled to your own insurer’s mandatory first-party pip benefits.

        A no-fault denial must be made in writing, on a special form filed with the state insurance department. (see kentucky no-fault denial form). Unless and until the Department of Insurance is notified, in writing, of any change in the driver’s automobile insurance elections, the denial will remain in effect.

        See also: Common issues that lead to insurance claim denials – Continuum

        note: if all members of a household file no-fault denials with the insurance department, any auto insurance policy on a family vehicle must include “guest” pip coverage, which will apply to a passenger or pedestrian who is injured in an accident with the family vehicle.

        kentucky no-fault thresholds

        Even when a vehicle owner decides to opt for no-fault coverage, if your auto accident injury claim reaches the legal limit, you will be exempt from the no-fault rules (again, that means a claim is possible). for liability or a lawsuit) against the at-fault driver). in kentucky, those thresholds are:

        • the accident resulted in at least $1,000 in medical bills, or
        • accident caused permanent disfigurement of claimant, fracture of a weight-bearing bone; compound, compressed, or displaced fracture of any bone; any permanent injury or any permanent loss of bodily function.
        • does kentucky no-fault insurance apply to vehicle damage?

          The no-fault auto insurance rules we’ve discussed here only apply to claims for injuries after a car accident. After a car accident, you can make a vehicle damage claim against the at-fault driver, filing a third-party car insurance claim through that driver’s car insurer or a small claims lawsuit, for example. /p>

          car insurance requirements in kentucky

          In addition to pip coverage, kentucky requires vehicle owners to maintain minimum amounts of “liability” auto insurance, which applies to injuries and vehicle damage suffered and sustained by others when you are at fault for an accident. The minimum liability coverage requirements in Kentucky are:

          • $25,000 for injuries per person, in a single accident that you caused
          • $50,000 total, for all injuries resulting from a single accident caused by you, and
          • $10,000 for property damage as a result of any accident you caused.
          • Note: You can always purchase an auto insurance policy with higher liability limits. If you are found at fault in an accident and the injured person’s losses exceed your coverage limits, you will be required to make up the difference from your own assets.

            learn more about kentucky auto insurance (from the state insurance department). And if you have been involved in a car accident, especially if your injuries are serious, you may want to learn more about your options under Kentucky law. See how an attorney can help you with your car accident case, or connect with a car accident attorney in your area using the tools on this page. Answer a few questions about your situation and get a free case evaluation.

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