The answer is not always straightforward because Kentucky is a choice no-fault state. By default, most drivers are covered by the no-fault system, which means they typically turn first to personal injury protection (PIP) coverage after a minor car accident, regardless of who caused the crash. In many cases, PIP benefits are paid by the insurer of the vehicle the injured person occupied, or by the insurer of the vehicle that struck them as a pedestrian.
However you can choose to opt out of the no-fault system in writing. If you opt out, you may face higher premiums and won’t benefit from personal injury protection coverage unless you buy it back. But you can pursue a civil claim any time someone causes you harm in a crash.
This guide will explain the details of Kentucky’s no-fault system, which is important as many local motorists are confused about how no-fault works and whether to opt in or out of the no-fault system. At Lawrence & Associates Accident and Injury Lawyers, LLC, we understand the challenges you’re facing, and we’re here to protect your rights every step of the way.
What Does ‘No-Fault’ Mean in Kentucky?
Kentucky is a choice no-fault state because you are opted into buying personal injury protection (PIP) coverage by default. PIP pays for up to $10,000 for medical expenses, partial lost wages, and survivor benefits after any auto accident.
Under the state’s no-fault rules:
- You file a claim with the insurer of the vehicle you were riding in. If you were a pedestrian, you typically file with the insurer of the vehicle that hit you.
- If you’re a passenger in an uninsured vehicle, you can also use other PIP policies, like your own coverage. Or you can go through the Kentucky Assigned Claims Plan if no PIP coverage is available.
- If you are in your own car and have no PIP insurance, you don’t get PIP coverage.
Under Kentucky’s no-fault system, you are limited to making a no-fault claim for compensation after any minor accident, even if the other driver caused the incident and harmed you, unless you meet the tort threshold. That means your injuries are considered serious enough to sue.
However, PIP coverage ensures you can get compensation for basic losses even if you were at fault for the crash.
How Is Kentucky Different from a Pure No-Fault State?
In pure no-fault states, you do not have the option to opt out of the no-fault system. You must buy PIP coverage and you must use that coverage unless you meet the tort threshold or serious injury threshold.
In Kentucky, you have the option to opt out of the no-fault system if you want to. You must reject PIP coverage in writing. If you do this, you will not have any basic PIP coverage unless you buy it back. You have the right to sue others even for more minor accidents when you opt out of the system, but others also have the right to sue you, so your liability insurance premiums will be higher.
What Is Personal Injury Protection (PIP) Coverage and What Does It Pay For?
According to the Kentucky Department of Insurance’s rules, all motor vehicles, except motorcycles, must have basic personal injury protection (PIP) coverage. This pays for your actual expenses from more minor injuries in an auto accident, including medical bills and lost wages.
If you operate a motorcycle, basic PIP coverage is optional. If you do not buy it, you and your passengers generally will not have PIP coverage for injuries suffered while riding the motorcycle. However, you will not automatically have the right to sue, and you will not automatically face the risk of being sued, unless you file a no-fault rejection form.
What Expenses Does PIP Cover?
Your PIP pays:
- Up to $10,000 for medical expenses
- Lost wages up to $200 per week
- Replacement services and survivor benefits
You have the option to buy optional PIP coverage if you want more protection from losses.
What Happens When PIP Runs Out?
If PIP runs out and you still have medical bills to pay, your own health insurance may cover the costs. Your medical insurance is considered a secondary payer so it may cover additional care costs above PIP limits (dependent on factors like your deductible and policy limits).
If another driver was to blame for the accident and your injuries are serious, then you may be able to take legal action against the other driver, despite the state’s no-fault rules.
Under KRS 304.39-060(2)(b), you can pursue a claim against an at-fault driver even within Kentucky’s no-fault system if your medical expenses exceed $1,000 or if you suffered a serious injury including things like permanent disfigurement, permanent injury, or death.
If you want to pursue a claim outside of Kentucky no-fault insurance, it is important to find a local attorney with trial experience and a history of positive case results, and client testimonials. You want to ensure that your lawyer has the knowledge and skill needed to maximize your chances of success.
Can You Sue the Other Driver After a Car Accident in Kentucky?
You can sue the other driver after a car accident in Kentucky if your injuries are considered serious enough under the law. They must meet the “tort threshold.”
What Are Kentucky’s Tort Thresholds?
KRS 304.39-060(2)(b) defines the situations where your injuries meet the tort threshold, thus giving you the right to file a lawsuit against a driver whose negligence or wrongdoing was the direct cause of the accident. The conditions that entitle you to pursue a claim against an at-fault driver include:
- $1,000 in medical expenses
- A broken bone
- Permanent disfigurement
- Permanent injury
- Death
Under Kentucky’s statute of limitations for car accident cases you generally have a two-year time limit for suing the other driver, but the deadline may run from the injury, death, or the date of the last basic or added reparation payment, whichever occurs later. Because PIP payments can affect the deadline, injured people should speak with a lawyer as soon as possible.
If you don’t act within this time, your case will be time-barred. It can’t move forward.
What Damages Can You Recover If You Sue?
If you can successfully prove your car accident case, you should be entitled to more compensation than you’d be eligible for under Kentucky’s PIP limits. However, you will need to provide evidence to prove who was to blame if fault is disputed.
Some of the different kinds of compensation that you may be entitled to include:
- Medical bills including future bills and costly care above Kentucky PIP coverage limits
- Full lost wages with no weekly limit
- Pain and suffering
- Emotional distress
You’ll need to identify all defendants and sources of insurance coverage to try to maximize your compensation.
For example, in rideshare accident claims, like Uber accidents, there may be commercial insurance provided by rideshare apps. If you work with an experienced attorney who protects their clients’ rights, your attorney can explain what compensation you may be eligible for.
What Happens If You Opt Out of Kentucky's No-Fault System?
Under Kentucky’s choice no-fault law, drivers can reject the no-fault system in writing if they do not want its protections or limitations. If you own a passenger vehicle, this generally means filing the required rejection form. Motorcyclists must specifically reject no-fault protections because Kentucky does not require them to buy basic PIP coverage for motorcycles.
The trade-off is significant. If you reject PIP, you generally will not receive PIP benefits unless you buy that coverage back. That means PIP may not be available to pay your medical bills or lost wages after a crash. However, rejecting no-fault protections preserves your full tort rights, allowing you to sue an at-fault driver from the first dollar of damages without meeting Kentucky’s tort threshold. You still must prove fault, causation, and damages. Drivers who reject PIP must also continue to carry Kentucky’s required minimum liability insurance coverage.
What Are Kentucky's Minimum Auto Insurance Requirements?
Kentucky drivers must carry minimum liability insurance of at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 per accident for property damage.
Drivers may also have uninsured or underinsured motorist coverage. Uninsured motorist coverage may apply when the at-fault driver has no insurance, while underinsured motorist coverage may apply when the at-fault driver has insurance, but not enough to cover the full value of your damages.
How Kentucky’s No-Fault Law Affects Minor Car Accidents
Because many car accidents are relatively minor, many cases stay within the PIP system for those who did not opt out. While this can make it easier to get compensation, there are still challenges. You have strict deadlines to meet, and some insurers try to deny legitimate claims, delay claim processing, or pay you less than the amount you deserve.
An experienced attorney who understands Kentucky’s no-fault insurance rules can help you to deal with your own insurer and take action against another driver’s insurance company. Our team has handled bad faith claims against insurers, and has a strong reputation for being able to negotiate with insurance companies to get our clients the compensation they deserve.
Our past client stories show how even minor crashes can cause significant losses, and the ways in which we help you throughout the process. These include communicating regularly about your case as well as bringing our decades of collective experience to every claim.
Talk to a Kentucky Car Accident Lawyer Today
At Lawrence & Associates Accident and Injury Lawyers, LLC, we understand the challenges you’re facing, and we’re here to protect your rights every step of the way. Our experienced Cincinnati and Northern Kentucky personal injury attorneys can guide you on what to do—and what to avoid—so you don’t unintentionally harm your case.
Call us today at (859) 251-3045 for a free, confidential consultation or fill out our online form to get started. Let us fight for the compensation you deserve while you focus on healing.
