Fact-Checked: Why Trust Rittgers Rittgers & Nakajima When you’ve been in a car accident, regardless of the location, one of the first questions that comes up is, “Who pays for the damages?” In Kentucky, the answer can get complicated.
Kentucky does not operate under a purely no-fault or purely fault-based system. Instead, it uses a choice no-fault system, which blends elements of both and gives drivers some control over how claims are handled after a crash.
Understanding how this system works (and what happens if you reject no-fault benefits) can make a significant difference in your ability to recover compensation.
Kentucky’s Choice No-Fault System Explained
By default, most drivers in Kentucky are automatically enrolled in the state’s no-fault system through Personal Injury Protection (PIP) coverage. This applies to nearly all drivers, except motorcyclists. PIP is available to motorcyclists, but they must affirmatively “opt in” to PIP coverage on their bikes..
Under the PIP system, your own insurance company pays certain losses after an accident, regardless of who caused the crash. PIP coverage is designed to provide quick access to benefits without requiring proof of fault, a lengthy claims process, or a lawsuit. The intention behind the PIP system is to streamline the compensation process for injured drivers and keep the court system unburdened by smaller claims.
PIP benefits typically cover medical expenses related to the accident, up to $200 per week of your lost wages, and the cost of certain ”replacement services” that the injured person could previously due but has to pay for after being hurt. Property damage to your vehicle is handled separately, either by your own collision insurance or the at-fault driver’s insurance. PIP benefits are subject to default coverage limits of $10,000, though drivers can choose to purchase up to $40,000additional PIP limits for even more no-fault protection.
To reject PIP coverage, a driver has to file a no-fault rejection form with the Kentucky Department of Insurance, giving up their right to PIP benefits and agreeing to pursue any claim under a traditional fault-based system. So, unless you took that step, you likely have PIP coverage if you are an insured Kentucky driver. For motorcycle owners, even though they are not automatically entitled to PIP benefits for accidents involving their motorcycle, they are entitled to PIP benefits for crashes in other vehicles, unless they have filed a PIP rejection.
When can you sue the at-fault driver?
For Kentucky drivers who have PIP coverage, Kentucky has a no-fault threshold that must be satisfied before you can file a lawsuit against the at-fault parties. To file a lawsuit for your damages, you must meet at least one of the following criteria:
- Have medical bills that exceed $1,000
- Have a serious injury, which is generally defined as a broken bone or one that will cause you permanent injury, disfigurement, amputation or loss of a bodily function
Wrongful deaths related to a car accident also meet the requirements for a personal injury lawsuit.If your damages are severe enough to meet the threshold, you can then file a civil claim. That also opens the door for additional compensation not included in PIP coverage, such as pain and suffering. However, since the first $10,000 of your damages is paid by PIP, the first $10,000 of the other driver’s tort liability is “abolished” under Kentucky law. This rule is intended to prevent an injury victim from recovering twice – once from PIP and again by the at-fault driver – for the same damages.
It is also important to note that any claim pursued outside of PIP is subject to Kentucky’s pure comparative negligence rule. This means that liability is divided between you and the other driver according to your individual degrees of fault, and your compensation will be reduced accordingly, although you can still recover some losses even if you are deemed 99% liable for the losses.
To put all of this into a practical example, imagine that you are injured in a collision and your total damages, including medical bills, wage loss, and pain and suffering, are valued at $100,000. The first $10,000 of your medical expenses and wage loss are paid by PIP. You then file a lawsuit against the driver that caused the crash. The other driver is found to be 75% at fault, while 25% of the liability is assigned to you. You would then only be able to a total of $75,000 in damages. Since the other driver’s liability is “abolished” to the extent of the PIP payments you already received (or that were paid to your medical care providers on your behalf), the total you can recover from the at-fault driver is $65,000.
It can be difficult to navigate these complex interactions within the laws, and more difficult still to obtain fair compensation when you are up against insurance companies that would prefer to minimize their losses. That’s why it is always wisest to seek experienced legal guidance when you suffer serious injuries in a Kentucky car accident.