How Does Kentucky Vehicle Insurance Work?
Kentucky’s auto insurance system is designed to keep low-value vehicle accident claims out of court while allowing those more seriously injured to litigate their case. If you’re involved in an accident, you may find paying for coverage beyond the required minimums was a good investment.
What is a “Choice No-Fault” Insurance System?
Kentucky is one of twelve states with a no-fault insurance system that allows individuals to opt out of them. Under a no-fault system, drivers use their vehicle insurance policy to compensate for medical costs and other financial losses caused by an accident, no matter who is at fault, up to the coverage limit. A benefit to this approach is you may get some coverage relatively quickly, without going to court, because there’s no need for an investigation into fault and liability.
Kentucky’s no-fault insurance comes with “personal injury protection” (PIP), whose minimum coverage is $10,000 for:
- Medical bills caused by your accident injuries
- Lost pay due to missed time at work
- Expenses due to the accident
This minimum coverage doesn’t include vehicle damage or compensation for pain and suffering caused by your injuries. PIP covers you, the passengers in your vehicle, and the pedestrians and bicyclists you may strike with it.
If you can afford it, you should pay a higher premium when you buy vehicle insurance to increase PIP coverage because you could quickly surpass the $10,000 limit. You need to use PIP coverage whether or not you or the other driver is at fault. If another party caused the accident, your carrier will seek reimbursement from their insurer.
Can I Reject No-Fault Insurance?
In Kentucky, vehicle liability coverage is mandatory, but you can choose not to participate in the no-fault system. If you’re injured in an accident caused by another driver, you won’t have PIP coverage, but you can file a lawsuit against them. You can also be sued if you injure someone in a vehicle accident.
Your rejection of no-fault coverage must be written or on a specific form filed with Kentucky’s Department of Insurance.
Can I Sue the At-Fault Driver?
PIP recoveries are limited and won’t be enough for more severe accidents. You can go beyond this system and file legal claims against responsible parties when the accident causes:
- At least $1,000 in medical bills, or
- Your permanent disfigurement; a broken weight-bearing bone; any bone fracture that’s compressed, compound, or displaced; a permanent injury or lost bodily function
If you don’t meet the injury requirements, given our healthcare system, it doesn’t take much to reach, if not exceed the $1,000 limit in medical costs. After these thresholds are met, you can seek compensation beyond the no-fault insurance coverage limits. This can cover emotional distress, pain and suffering, non-economic losses, and property damage.
PIP won’t cover you if your trip was work-related. If you own a business, you should have commercial insurance coverage for that situation. If you work for someone else and are injured, file a workers’ compensation claim. Legal action against the at-fault party may be an option.
What are Other Requirements?
You must pay for at least a minimal amount of liability coverage. This applies to claims for injuries and vehicle damage suffered by others who blame you for the accident. The minimum coverage in Kentucky is:
- $25,000 for injuries per person, per accident
- $50,000 for all injuries caused in an accident you caused
- $10,000 for property damage due to an accident you caused
These figures mean that your insurance carrier will cover your liabilities up to these amounts. You’ll need to pay anything beyond them.
Like PIP, buy more liability coverage if you can afford it. If you cause an accident and there are multiple occupants in the other vehicle, the value of their injuries can easily go beyond $50,000. Depending on the car you hit, it may not be difficult to cause at least $10,000 in mechanical and or body damage.
What Coverage That’s Not Required Should I Buy?
Additional coverage for accident-related medical bills is worth considering, especially if you lack health insurance, your health insurance coverage is not very good, or you have high deductibles.
Uninsured/underinsured motorist coverage protects if the accident is caused by someone who lacks insurance or their coverage isn’t enough to cover your losses. It also goes into effect if you’re the victim of a hit-and-run accident and the other driver’s identity and insurance coverage are unknown.
Speak With An Experienced Vehicle Accident Injury Lawyer
Satterley & Kelley, PLLC has represented vehicle accident victims for decades. Discuss your case with a knowledgeable Louisville attorney by contacting our law offices online or calling us at 855-385-9532.