Each state is responsible for instituting its own auto accident insurance system. As a consequence, legal standards vary widely from state to state. Many states have opted for a “no fault” auto insurance system, and Kentucky is one of these states. Despite its name, Kentucky’s system doesn’t mean that fault won’t be taken into account when determining compensation for an auto accident – it all depends on the circumstances.

The Choice

Kentucky, unlike several no-fault auto insurance states, is considered a “choice no-fault” state. When you purchase auto insurance, you will be given the opportunity to opt out of the no-fault system by filing a special form. If you choose this option and you are later injured in a car accident caused by someone else, you can file a claim against the other driver’s auto liability insurance policy. If you fail to opt out, your insurance coverage will be considered no-fault.

PIP Insurance

“PIP” means “Personal Injury Protection”, and PIP insurance will cover your claim of up to $10,000 no matter whose fault the accident was. Unless you or the other driver qualifies for an exemption, each of you will collect compensation for his own injuries from his own PIP insurance policy, with no need for an insurance claim or a lawsuit between you, and no apportionment of fault.

Getting Out of the No-Fault System

If you suffered a head injury that is going to cost you $20,000 in medical expenses, $10,000 in PIP insurance proceeds is not going to be enough. For this reason, Kentucky has established a standard which, if you meet it, will allow you to file a claim against the at-fault driver’s auto liability insurance policy. All Kentucky drivers are required to carry at least $25,000 to cover personal injury liability to another person.

To exit Kentucky’s no-fault system and file a claim directly against the at-fault driver’s insurance policy, your injury must have resulted in:

• at least $1,000 in medical bills, or
• permanent disfigurement, permanent injury, permanent loss of body function, or certain kinds of bone fractures.

Please note that the no-fault limitation does not apply to damage to your vehicle – you can always file a claim against the at-fault driver’s insurance to recover compensation for property damage.

Take Action Today

Kentucky’s statute of limitations period of only one year is one of the shortest in the nation. If you miss the deadline, your claim will die immediately unless an exception applies. Get started today by calling Glenn Martin Hammond Law Office, PLLC at (866) 448-7777 or by contacting us online to schedule a free consultation. We serve clients throughout Lexington, Kentucky including Bryan Station, Firebrook, Westmoreland and elsewhere.