The Impact of “No-Fault” Insurance Laws on Kentucky Car Accident Claims

When it comes to car insurance, different states have different laws that determine how car accident claims are handled. Kentucky follows a “no-fault” insurance system and also stands out as one of only three states in the U.S. that follow the “choice-no-fault” system. While the no-fault insurance laws help streamline the compensation process, they also have specific implications that you should understand. This article explores how Kentucky’s no-fault insurance system affects car accident claims and what it means if you are ever involved in a collision.

What Is a “No-Fault” Insurance System?

Kentucky’s no-fault insurance system implies that if you are involved in a car accident, your insurance policy, through Personal Injury Protection (PIP) coverage, pays for medical bills, lost wages, and any other accident-related expenses, regardless of who is at fault. The principle behind this system is to reduce the burden on courts by preventing minor personal injury claims from escalating into lawsuits and expediting compensation for the injured.

However, this does not mean you cannot pursue a lawsuit in Kentucky. Some exceptions, known as the “no-fault” thresholds, allow you to sue an at-fault driver. You can file a lawsuit if:

• Medical expenses exceed $1,000
• Severe injuries occur, such as permanent disfigurement, fracture, or loss of a body function
• The accident results in death

If you meet these criteria, you can seek compensation for non-economic damages such as pain and suffering, which is not covered under standard PIP insurance.

What Does PIP Cover?

PIP insurance in Kentucky provides essential financial relief after a car accident by covering the following:

• Medical expenses
• Lost wages (up to $200 per week for missed work)
• Replacement services
• Survivor’s benefits (in the unfortunate event of a fatal accident)

Who Pays for Vehicle Damage in Kentucky?

Vehicle damage is not covered under the Kentucky no-fault insurance system. Responsibility for vehicle damage depends on various circumstances, including:

• If one driver is at fault, their insurance typically pays for the damage.
• If both drivers share fault, a comparative negligence rule may apply, reducing the amount each party can recover based on their degree of fault.

Implications of “No-Fault” Laws for Kentucky Accident Claims

Kentucky’s no-fault system comes with both advantages and challenges. Some of these advantages include:

• The no-fault system provides immediate financial support, ensuring quick access to medical care and lost wages.
• You can opt out of no-fault coverage under “choice no-fault” laws, potentially lowering premiums.

On the other hand, these laws present some challenges for Kentucky drivers, which may consist of the following:

• Higher insurance premiums compared to other states as PIP coverage is mandatory
• Since PIP benefits have caps, expenses exceeding the PIP limits may need to be paid out-of-pocket or necessitate the injured party to seek additional compensation by filing a lawsuit
• While opting out may lower premiums, it leaves you subject to a fault-based system where you must prove the other party’s liability to receive compensation.
• For severe injuries requiring long-term treatment, PIP benefits may not be enough. In such cases, you may need to buy additional insurance or pursue legal action to seek compensation.

Get the Help of a Top London and Southeast Kentucky Car Accident Attorney Today

Whether you are filing a PIP claim or considering a lawsuit against an at-fault driver, having a knowledgeable attorney by your side can make all the difference. Contact our experienced London and Southeast Kentucky auto accident attorneys at Cessna & George Law Firm today to ensure you receive the compensation you deserve.

Source:

insurance.ky.gov/ppc/newstatic_info.aspx?static_id=24#:~:text=Limitations%20on%20an%20individual%E2%80%99s%20rights%20to%20sue%20and%20be%20sued%20(tort%20rights).