Kentucky Laws

A. Kentucky is one of a very few states that uses something called "choice no fault" rules. This means that you can either opt in or opt out of "no fault" rules. You must decide whether you are opting in or out when you buy your insurance - you can't do it after a car accident has happened.

Kentucky law requires that you be provided with two options when buying car insurance:

• Full Tort
• Limited Tort

If you opt for Full Tort, then you are opting out of the no fault system. If you select Limited Tort, however, then you are opting in, meaning you cannot file a lawsuit for most car accident situations. Instead, you will be limited to making a claim with your insurance provider. This claim will cover your medical bills and your lost wages if a car accident injury causes you to miss work. However, it will not allow you to obtain any compensation for pain and suffering or for emotional distress. Limited tort coverage allows you to save some money on your policy at the time when you buy car insurance.

If you opted into the "no fault" system by purchasing limited tort insurance, you are restricted from suing after a car accident. If you purchased full tort insurance, you may sue. You may also make a third party claim against the insurer of the person who caused the accident. If you purchased no insurance at all, then you are also generally able to sue to recover your damages if the other party was at fault. If a no-fault rejection form is on file, that individual is not entitled to receive basic PIP benefits. Individuals who have rejected can “buy-back” the basic PIP coverage.

B. Because Kentucky is a no-fault state, it has different requirements for insurance coverage.

• Mandatory Coverages:

1. Personal Injury Protection (PIP)

            Personal injury protection (PIP) coverage is required by all motor vehicle owners at all times. PIP pays up to $10,000 regardless who is at fault for the accident.

Kentucky “Buy Back” PIP: When buying the basic PIP coverage in Kentucky you forfeit your right to sue the other driver in an accident for the cost of injuries, unless the cost exceeds a $10,000. Kentucky insurance companies will allow you to buy back that right for an increase in your premium.

• Optional Coverages:

1. Collision Coverage: This coverage is optional, and pays you for any damage done to your vehicle. You pay up to the amount of your deductible limit and then your insurance will cover the remainder. A higher deductible will give you a lower premium. If the accident was not your fault, your insurance company should demand your deductible back from the responsible party and then return the deductible to you.

2. Under-insured Motorist Coverage: UIM coverage only applies if you are injured, it wasn’t your fault, and the other party didn’t carry enough insurance to adequately compensate you for your injuries. Serious injury is defined as a personal injury resulting in death, serious impairment of a bodily function or permanent serious disfigurement.

3. Comprehensive Coverage: Comprehensive coverage provides coverage for an insured vehicle that is damaged by incidents that are not the result of a collision. These types of accidents can be a result of fire, theft, vandalism, weather, or impacts with animals.

IIHC will refer you to a lawyer who will help you get your insurance claim money in a timely manner throughout Kentucky cities and counties, including: Masonic Home, Eastwood, Louisville, Glenview, Harrods Creek, Prospect, Fairdale, Brooks, Pewee Valley, Goshen, Fisherville, Mount Washington, Crestwood, Buckner, La Grange, Shepherdsville, Simpsonville, West Point, Clermont, Finchville, Lebanon Junction, Bullitt County, Jefferson County, Oldham County, Shelby County.

Related Topics:

• Kentucky Laws

• Process of Filing an Kentucky Car Accident Claim

• Damages you can Recover

• Disputing a Claim

• Kentucky Car Accident Facts