Kentucky’s auto insurance system is different from most other states. It’s one of the few states that uses a no-fault auto insurance method. In most other states, the person who caused a crash is liable for the damages, so a victim turns to that liable person’s insurance for compensation. No-fault insurance doesn’t work that way.
A no-fault insurance system means that if you’re involved in a car crash, regardless of who caused the accident, you will first turn to your own car insurance coverage to pay for your medical expenses and certain other losses. It’s designed to streamline the process of getting compensation for injuries, making it quicker and less complicated for everyone involved.
How it works for you after a crash
Under this no-fault system, when you get hurt in a car accident, you don’t have to worry about proving the other driver was at fault to have your initial medical costs covered. Your own insurance policy has what’s called personal injury protection (PIP) coverage. This coverage kicks in to help with medical bills, a portion of lost wages and sometimes other expenses like rehabilitation costs, regardless of who was responsible for the accident.
The option to step outside the no-fault system
Kentucky’s no-fault system has limits. If your injuries are severe, resulting in significant medical expenses or a substantial change in your life, you might have the option to step outside this no-fault system to cover additional costs that exceed your PIP coverage limits. There are specific criteria for what constitutes serious injury, allowing you to take this route, such as permanent disfigurement or significant and permanent loss of bodily function.
Your rights and choices
Being part of a no-fault state like Kentucky gives you certain protections but also limits your options in some ways. For instance, the no-fault rule means you can receive prompt payment for your losses without the need for lengthy legal battles. It also means your ability to sue the other driver is limited to more severe cases. Understanding these rules can help you make informed decisions about how to proceed if you’re ever in an accident.