Understanding What PIP Is and What It Does
Personal Injury Protection, or PIP, is a vital component of auto insurance in many states in the United States of America, including Kentucky. PIP covers medical expenses and other losses after a motor vehicle accident, regardless of fault. Millions of drivers who operate a motor vehicle in Kentucky every year have PIP coverage (unless they have formally rejected it). In this article, we delve into what PIP is and what exactly it does. Read on!
What Is Personal Injury Protection (PIP)?
This is a type of auto insurance coverage intended to provide swift financial assistance to policyholders in the event of injury suffered in a motor vehicle accident. The Kentucky Motor Vehicle Reparation Act, also called the No-Fault Law, requires insurance companies to offer PIP coverage with all automobile policies sold in Kentucky. PIP benefits are “no-fault,” meaning that you can recover compensation no matter who is at fault for the accident. In addition to the policyholder, PIP may also cover the policyholder’s family or household members.
In Kentucky, you can choose to purchase higher levels of PIP coverage, but the minimum you are required to buy is $10,000. That is $10,000 per accident per person. It is highly advisable that you purchase more than the minimum coverage.
What Does PIP Cover?
The following is what the minimum PIP coverage pays for;
- Up to $10,000 for medical expenses per individual in an accident
- 85% of lost wages (up to $200/week)
- Other costs, such as in-home health services
When a passenger, pedestrian, or bicyclist is hit by a car or when a passenger sustains injuries while riding in a vehicle, they are covered by the driver’s policy. If the driver does not have an insurance policy, PIP benefits can be recovered through a family or household member’s policy.
Out-of-State Accidents
Suppose you live in Kentucky and are involved in an accident in another state. Are you entitled to PIP benefits in such a case? Yes, if your vehicle is registered and insured in Kentucky, you are entitled to PIP benefits even if your accident happened in another state.
Situations Where PIP Would Not Apply
It is important to note that there are times when PIP does not automatically apply, including the following;
- The accident was work-related
- You have rejected PIP
- If you don’t have PIP insurance in place (if you were operating the vehicle)
Tort Limitations
PIP law in Kentucky has a tort limitation. If you have PIP coverage, the first $10,000 in medical expenses, lost wages, and other related costs must be paid by your PIP insurance. You can’t recover this amount from a negligent or at-fault driver. Also, you cannot file a claim for extra compensation against an at-fault driver unless your medical expenses exceed $10,000. The only exception is if your injury was a broken bone, permanently disfiguring, permanent, or caused a permanent loss of bodily function.
It is crucial to note that you can reject your tort limitations in Kentucky. To do so, you must submit a form to the Kentucky Department of Insurance. By rejecting your tort limitations, you also reject your PIP coverage. For this reason, this option is usually referred to as the rejection of PIP insurance.
Contact a London & Southeast Kentucky Auto Accident Lawyer
For more information or help with an auto accident case, contact the qualified London & Southeast Kentucky auto accident lawyers at Cessna & George Law Firm.
Source:
apps.legislature.ky.gov/law/statutes/statute.aspx?id=30024
