Kentucky: Dropping Pip On Auto Insurance

In the state of Kentucky, Personal Injury Protection (PIP) is mandatory for all drivers, except motorcyclists, and provides coverage in the event of a motor vehicle accident. As Kentucky is a no-fault state, PIP covers medical expenses, lost wages, and other costs related to injuries, regardless of who is at fault for the accident. While the minimum requirement is $10,000 of PIP insurance, residents can typically purchase up to $50,000. However, it is important to note that by accepting PIP, individuals agree to certain restrictions on their ability to sue the other party involved in an accident. This restriction can be rejected, but it also means giving up the PIP benefits.

No-fault insurance

In the United States, no-fault insurance is mandatory in 18 states and Puerto Rico. In these states, drivers are typically required to have a minimum amount of PIP coverage to ensure they have financial protection in the event of an injury caused by an auto accident. This coverage is often in addition to other types of auto insurance, such as bodily injury and property damage.

Kentucky is one such state where PIP insurance is mandatory, with a minimum requirement of $10,000 in coverage for all drivers except motorcyclists. This coverage extends to various scenarios, including when an individual is operating a vehicle, is a passenger in a vehicle, or is a pedestrian or bicyclist involved in an accident.

One important aspect of no-fault insurance is that it comes with certain restrictions on the policyholder's ability to sue the other party involved in an accident. By accepting PIP coverage, individuals agree to give up their right to initially recover the first $10,000 in medical expenses, lost wages, and other related costs from the at-fault driver. Instead, these costs need to be paid by their own PIP insurance or other applicable PIP insurance. However, individuals can choose to reject this restriction by submitting a document to the state, but as a result, they would also give up their own PIP benefits.

Minimum required PIP coverage

In Kentucky, a minimum of $10,000 of Personal Injury Protection (PIP) insurance is mandatory for all drivers, except motorcyclists. This no-fault insurance covers medical expenses, lost wages, and other costs related to injuries sustained in a motor vehicle accident, regardless of who was at fault. The minimum level of personal injury protection covers up to $10,000 of medical expenses per person in an accident, 85% of lost wages due to the injury (with a maximum of $200 per week), and other related costs, such as replacement services.

While PIP is not required in Kentucky, drivers who opt into the state's no-fault system must carry at least $10,000 of PIP coverage. This restriction limits their ability to sue another driver for compensation after an accident. As a result, PIP coverage becomes their primary source of financial protection if they face hospital bills or an extended recovery period due to their injuries. On the other hand, drivers who opt out of the no-fault system can forgo PIP insurance but retain their right to sue or be sued.

It is important to note that PIP coverage in Kentucky does not include work-related accidents. Additionally, if you have rejected PIP coverage or do not have it in place when operating a vehicle, you will not be covered by PIP in the event of an accident.

Out-of-state PIP coverage

As a Kentucky resident, your Personal Injury Protection (PIP) coverage will extend to you when you are driving in other states. This applies whether you are the driver or a passenger in an accident outside of Kentucky.

If you are not a resident of Kentucky and are simply driving through the state, your PIP coverage depends on your liability insurance limits. If your bodily injury and property damage liability limits meet or exceed Kentucky's minimum requirements, it is assumed that you have rejected PIP coverage. In this case, if you are in an accident, you can make a claim against the at-fault driver for the first $10,000 in expenses due to injury.

Kentucky is one of 15 states that require PIP coverage. It is a "no-fault state", meaning that your insurance will pay for your medical expenses, lost wages, and other costs related to your injuries, regardless of who was at fault in the accident. In Kentucky, at least $10,000 of PIP insurance is mandatory for all drivers, except motorcyclists, and you can typically purchase up to $50,000 from your insurer.

PIP insurance generally covers:

• Medical expenses from a car accident
• Lost wages due to injuries
• Rehabilitation costs
• Replacement services for tasks you cannot perform due to your injuries, such as childcare or house cleaning
• Funeral expenses and survivor benefits

Filing a PIP claim

In Kentucky, personal injury protection (PIP) insurance provides coverage if you're involved in a motor vehicle accident. As Kentucky is a no-fault state, PIP insurance covers medical expenses, lost wages, and other costs related to injuries, regardless of which party was at fault for the accident.

Eligibility:

To be eligible for PIP coverage in Kentucky, you must meet the following criteria:

• You were injured in a motor vehicle accident.
• The accident was not work-related.
• You have not rejected PIP coverage.
• You have PIP insurance if you were operating the vehicle.

It's important to note that PIP coverage extends beyond the driver to include passengers, pedestrians, and bicyclists involved in the accident. Additionally, Kentucky residents with PIP coverage while driving within the state will remain covered when driving in other states.

Timing:

Personal injury protection claims in Kentucky must be filed within specific time frames:

• Within four years of the accident occurring.
• Within two years if it is determined that you should have been aware of the loss.
• Within two years from the date of the last PIP payment if the accident victim has access to PIP.

Choosing the Correct Insurer:

The insurer you file your PIP claim with depends on your role in the incident:

• If you were a passenger or non-owner driver in an insured car, file a claim with the insurer of that vehicle.
• If you are the owner of the vehicle, file a claim with your own insurer.
• If you were a passenger in an uninsured car, file a claim with the other driver's insurer or your own insurer if you have coverage.
• If you were a pedestrian or bicyclist, file a claim with the vehicle owner's insurer. If the vehicle was uninsured, you can make a claim for basic PIP from the Kentucky Assigned Claims Plan.

Documentation:

When filing a PIP claim, it is crucial to maintain detailed records and gather the necessary documentation. This includes:

• Medical expenses: Collect all bills and receipts related to your medical treatment, rehabilitation, or therapy following the accident.
• Lost wages: Keep track of the time away from work due to your injuries and calculate the income you have lost as a result.
• Other costs: Gather receipts or proof of payment for any other expenses directly related to the accident, such as transportation costs to medical appointments or replacement services.

PIP insurance cost

In Kentucky, a minimum of $10,000 of PIP insurance is mandatory for all drivers, except motorcyclists. This minimum level of personal injury protection covers up to $10,000 of medical expenses per person in an accident, 85% of lost wages due to the injury (up to $200 per week), and other related costs, such as replacement services. You can typically purchase up to $50,000 of coverage from your insurer. The cost of PIP insurance in Kentucky varies depending on factors such as your coverage limits, whether you've added a deductible, and the city you live in. For a driver who has accepted limitations on their tort rights, the rates for the minimum PIP start at $121 per month.

If you reject your tort limitations and don't purchase PIP, you will still likely face increased rates for liability insurance. This is because other drivers can sue you for injuries that wouldn't meet the threshold. You'll also have to pay a premium for "guest PIP coverage," which provides coverage for pedestrians and passengers involved in an accident. For a driver with the state minimum liability limits, not having PIP coverage increased premiums by a total of $40 per month, including the cost of guest PIP insurance.

In Oregon, all auto insurance policies must include personal injury protection, which provides coverage if you're injured while operating a vehicle, regardless of who is at fault. Oregon law requires a minimum of $15,000 of PIP coverage, but you can purchase a policy with higher limits if you choose. While not all PIP policies come with a deductible, this option is available through some insurers, with a maximum deductible of $250 allowed in Oregon. The cost of PIP insurance in Oregon depends on the amount of coverage, the deductible, and your driving history. Higher PIP coverage can increase the monthly cost of an auto insurance policy with minimum liability limits by 22%.

Frequently asked questions