No, personal injury protection (PIP) is not required in Kentucky, because drivers who opt-out of the state’s no-fault system do not need to purchase it. However, Kentucky drivers who agree to the no-fault system need at least $10,000 of PIP coverage for medical expenses, lost wages and certain related costs.
Drivers who agree to Kentucky’s no-fault system are required to have PIP because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury. On the other hand, Kentucky drivers who opt-out of the no-fault system can reject PIP insurance and maintain their right to sue or be sued.
PIP Insurance in Kentucky at a Glance
PIP is required for drivers who accept no-fault insurance
Minimum PIP coverage
At least $10,000 of PIP coverage for drivers who accept no-fault insurance
You need personal injury protection (PIP) insurance if you live in one of the 12 states that require it. You should also get PIP if your health insurance has low coverage limits or if you drive with passengers who could hold you responsible for their medical expenses in the event of an accident.… read full answer
In the 20 states (plus Washington, D.C.) where it is required or offered as optional protection, PIP covers medical expenses for the policyholder and his or her passengers after an accident, no matter who was at fault. However, PIP is not available at all in the 30 other states.
Always check with your insurance company or an agent for specifics on what coverage is required or available in your state before you determine what to include in your policy.
What Does PIP Cover?
Health insurance deductibles
Home care such as cleaning or child care
If you are in a car accident, PIP often works in conjunction with your health insurance coverage. Most health insurance deductibles must be paid before benefits start to be paid out, but your PIP may have a cheaper deductible, or no deductible at all.
How Does PIP Work With MedPay?
PIP insurance may overlap with another kind of car insurance known as Medical Payments, or MedPay. Like PIP, MedPay covers the costs of medical care resulting from of an accident, no matter who was at fault. Also like PIP, MedPay covers injuries to any passengers in your car. However, it does not pay for lost wages, rehabilitation or home-care services, which PIP would cover.
The way PIP and MedPay may work together depends on your state’s laws. If you live in one of the 12 states that require PIP, MedPay could be redundant. State limits on PIP vary widely, from $3,000 in Utah to New York’s $50,000 requirement. If your state has a low upper limit on PIP, MedPay coverage could act as a beneficial supplement. In a couple states – namely, Maine and New Hampshire – MedPay is used instead of PIP.
Yes, Kentucky is a no-fault state, which means each driver’s insurance pays for their own medical bills after an accident, regardless of fault. To pay for these expenses, drivers in Kentucky are typically required to carry $10,000 in personal injury protection (PIP) insurance.
Kentucky is also one of three “choice no-fault” states that allow drivers to opt out of the no-fault system, which would mean not being required to purchase PIP and no limitations when it comes to filing a lawsuit after a wreck. If a driver does not opt out, they can only sue the at-fault driver if they have incurred more than $1,000 in medical expenses or have suffered a broken bone, permanent injury or death.… read full answer
How Fault Affects Lawsuits in Kentucky
When a driver files a lawsuit against an at-fault party, even in no-fault legal systems, the state’s laws will affect how compensation is awarded. Kentucky has pure comparative negligence laws, which means that after an accident, you can collect damages proportionate to your fault in causing the crash. For example, if you're 20% at fault, you can get 80% of your damages covered by the other driver.
Why You Should Care That Kentucky Is a No-Fault State
No-fault means faster payouts. Police and your insurance company don't need to investigate the accident’s cause before you can get paid for your medical bills. As a result, your bills get paid more quickly than they would in a tort state, where fault for the accident determines the payout.
Another benefit of no-fault insurance is the knowledge that you're covered no matter who causes an accident. That can make driving in Kentucky a bit less nerve-wracking.
No-fault insurance also has downsides, unfortunately. The most obvious is higher premiums. States with no-fault insurance struggle with high rates of fraudulent claims, which raise the costs of insurance for everyone.
No-fault rules don’t apply to property damage, either. One or both drivers will be at fault after a collision, no matter which state you live in. The police and your insurance company consider Kentucky’s laws, the circumstances of the collision, and drivers’ testimonies before deciding who is at fault.
Kentucky vs Other No-Fault States
All states have a statute of limitations for lawsuits after a car accident. In Kentucky, the statute of limitations is fairly short: just two years. That means you have two years after your accident to file a lawsuit for medical damages.
No, you do not need rental car insurance in Alabama. As is the case in most states, rental car companies in Alabama provide the minimum state-required liability insurance coverage as a part of their basic contract. Specifically, they provide $25,000 in bodily injury liability insurance per person ($50,000 per accident) and $25,000 in property damage liability coverage per accident.… read full answer
If you have an existing personal car insurance policy that includes other types of coverage, like collision or comprehensive, or liability limits that are higher than what your state requires, the extra protection will extend to your rental car. But if you don’t have auto insurance coverage of your own, it may be a good idea to purchase additional coverage from the rental company if you’re concerned about having enough protection in an accident.
For example, you can purchase a collision damage waiver, which provides coverage comparable to collision and comprehensive insurance. This type of coverage may even apply automatically if you pay for your rental with the right credit card. You can also purchase supplemental coverage that adds to the existing liability and medical payments limits from your personal policy.
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