What Is No-Fault Insurance and How Does It Work in Kentucky?

In many states, when you suffer injuries in a car accident, you first have to determine who was at fault for the accident. The negligent driver’s insurance company has to pay for the damages you incur during the accident. However, Kentucky is not one of those states – instead of operating on the traditional fault-based system; Kentucky’s car insurance laws follow a choice no-fault rule.

Kentucky’s Choice No-Fault Car Insurance System

Kentucky’s no-fault car insurance system runs in a slightly different way than traditional no-fault insurance states. In the traditional system, each driver in an accident has to go to his or her personal insurance company to receive compensation for injuries sustained in the crash, including medical expenses and property damage. The question of who was liable in the accident usually does not matter in this system, except in certain situations set by the state.

However, Kentucky’s choice no-fault car insurance system runs in a slightly different manner than other states. You will have personal injury protection benefits in your policy, helping you receive funds to pay for up to $10,000 in medical bills, lost wages, and other out-of-pocket costs that you sustain in an accident.

You can purchase additional and higher benefits at greater cost. In addition, any person who was driving or riding in your vehicle can receive personal injury protection benefits under your policy. Any pedestrians struck by your car can receive your personal injury protection benefits as well.

The main difference between Kentucky’s no-fault system and traditional no-fault systems is that you can opt out of the no-fault system when you purchase your car insurance policy. You retain the right to pursue liability claims or personal injury lawsuits against at-fault drivers in accidents you do not cause – but you may be liable for damages in accidents that you do cause. In addition, you do not receive personal injury protection benefits.

Filing Additional Claims With Kentucky No-Fault Coverage

If you decide to keep your no-fault coverage in Kentucky, you can still pursue third-party claims or personal injury lawsuits if your coverage is not enough to compensate you for all of your injuries.

You will have to meet one of the following threshold requirements to be able to file additional claims alongside your personal injury protection benefits.

  • Your accident must have resulted in at least $1,000 in medical expenses.
  • Your accident must have led to one of the following injuries: permanent disfigurement, compound, compressed, or displaced fracture of a bone, permanent loss of any bodily functions, any permanent injuries, or the fracture of a weight-bearing bone.

Car Insurance Requirements in Kentucky

In addition to the $10,000 of personal injury protection coverage, the state of Kentucky will require you to maintain a minimum amount of liability car insurance to help you cover injuries and damages suffered by other people in a car accident you caused. You must have the following amounts of minimum liability coverage to lawfully operate a vehicle in Kentucky.

  • $10,000 for any property damage that results from an accident you cause
  • $25,000 for any injuries per person in an accident you cause
  • $50,000 total for any and all injuries resulting in a single accident you cause

These amounts are the bare minimum of insurance you must carry in Kentucky. However, you can purchase an insurance policy with higher liability limits that can cover more injuries and damage. If you do not have enough coverage to pay for injuries to people in accidents you cause, you may have to pay for the remainder.

When in Doubt, Contact an Attorney

If you suffer injuries in a car accident in Kentucky, you can claim compensation for your injuries by filing an insurance claim. The choice no-fault system can be difficult to navigate, so seek the assistance of a car accident attorney as soon as possible. Your attorney can help you file your claim and assist you in obtaining as much compensation s possible. Contact our office today to schedule a free consultation