After a car accident, you need to understand your rights under Kentucky’s uniquely complicated insurance laws. The system combines no-fault insurance with options to pursue legal claims against at-fault drivers who cause accidents.
Knowing these rules can significantly impact your ability to recover compensation for injuries and damages. The difference between filing an insurance claim and pursuing a lawsuit depends on specific thresholds and your insurance choices.
How does Kentucky’s no-fault insurance work?
The Blue Grass State operates under a no-fault insurance system, meaning you’ll first turn to your insurer after an accident, regardless of who caused it. Your Personal Injury Protection (PIP) coverage pays for your medical expenses and lost wages up to your policy limits.
You can only step outside this no-fault system and file a claim against another driver when:
- You’ve exhausted your PIP coverage
- Your medical costs exceed $1,000
- You’ve suffered serious injuries, like broken bones, permanent disfigurement or other lasting injuries
Kentucky requires drivers to have minimum coverage of $25,000 for bodily injury per person, $50,000 per accident, $25,000 for property damage, and $10,000 PIP coverage per person. However, these minimums often prove insufficient for serious accidents.
Understanding the “opt-out” option
Kentucky offers a unique choice that most no-fault states don’t: you can opt out of the no-fault system entirely. This option changes how you handle accidents and claims. If you choose to opt out:
- You must file paperwork with the Kentucky Department of Insurance
- You still need liability insurance, but not PIP coverage
- You can immediately sue an at-fault driver without exhausting your own insurance
- You might face higher insurance premiums
This option provides more freedom to pursue legal action, but could mean longer waits for compensation after an accident.
Pure comparative negligence and uninsured motorist claims
Kentucky also follows pure comparative negligence rules, which means you can recover compensation even if you’re partly to blame. Your assigned percentage reduces the compensation you get. However, unlike many states, you can collect damages even if you’re 99% responsible for the accident.
Additionally, if an uninsured or underinsured driver caused your accident, you have several options:
- Filing a claim with your own uninsured/underinsured motorist coverage
- Pursuing a direct claim against the at-fault driver
- Exploring whether other insurance policies might apply to your situation
Remember that Kentucky’s statute of limitations gives you two years from the accident date to file a car accident lawsuit, which is longer than the standard one-year deadline for other personal injury claims.
Kentucky’s complex car insurance laws can be challenging, especially when recovering from injuries. A skilled car accident lawyer can help you understand your options and fight for the full compensation you deserve.