Fact-Checked: Why Trust Rittgers Rittgers & Nakajima Kentucky’s Personal Injury Protection (PIP) laws changed significantly in 2026. House Bill 627, which became law as Acts Chapter 149, effective July 15, 2026, changes several important provisions of Kentucky’s Motor Vehicle Reparations Act. The new law increases certain PIP benefits and creates new rules governing the payment and submission of medical expenses.
For anyone injured in a Kentucky automobile accident, these changes can have a direct impact on medical bills, lost wages, household expenses, and the handling of a personal injury claim.
What Is PIP in Kentucky?
Kentucky is a no-fault automobile insurance state. In general, Kentucky automobile insurance policies provide basic reparation benefits, commonly called PIP, to cover certain economic losses resulting from an automobile accident.
Kentucky’s basic PIP benefit remains $10,000 per person, per accident. The new law does not change that overall limit.
PIP may cover certain medical expenses, lost income, replacement services, and, when an accident is fatal, certain survivor losses.
Importantly, PIP is a no-fault benefit. That means an injured person may be entitled to PIP benefits even when determining who caused the accident has not yet been resolved.
The Biggest Change: Work Loss Benefits Increase From $200 to $500 Per Week
One of the most significant changes under the new law is the increase in the weekly PIP limit.
Previously, Kentucky law limited basic reparation benefits for work loss and certain other losses to $200 per week. Under the new law, that limit increases to $500 per week.
This can make a substantial difference for someone who is unable to work after a collision.
For example, suppose an injured person earns $1,000 per week but is medically unable to work for four weeks. The new PIP law does not mean the insurance company must pay the person’s entire $4,000 wage loss. Instead, the PIP benefit is subject to the statutory weekly limit of $500.
Replacement Services Are Also Subject to the $500 Weekly Limit, if not used for work loss.
PIP does not only address lost wages. Kentucky law also recognizes replacement services loss. This involves reasonable expenses incurred for ordinary and necessary services that an injured person would have performed for themselves or their family if they had not been injured.
For example, an injured person may normally:
- mow the lawn;
- clean the house;
- perform household maintenance;
- care for children; or
- perform other ordinary household tasks.
If an injury prevents the person from performing those tasks and reasonable expenses are incurred to replace those services, PIP may provide coverage.
The new law establishes a $500-per-week limit collectively for the covered categories of work loss, replacement services loss, and certain survivor losses. The $500 limit is not $500 for each category separately.
Funeral and Burial Benefits Increase to $5,000
Another meaningful change involves funeral, cremation, and burial expenses.
The new law increases the amount that can qualify as a medical expense for these purposes from $1,000 to $5,000 per person.
This change is especially important when an automobile accident is fatal.
It is important to remember, however, that the increase to $5,000 does not create an additional $5,000 on top of the $10,000 basic PIP limit.
New Rules Affecting Medical Bills
The 2026 legislation makes major changes concerning medical expenses submitted for PIP payment.
Under the new law, medical expenses paid through PIP cannot exceed the maximum fee permitted under the applicable fee schedule established under Kentucky workers’ compensation law. The law also provides that a submitted medical expense is presumed reasonable for purposes of basic and added reparation benefits when it is submitted in accordance with the statute.
This is an important change for both accident victims and medical providers.
The legislation also establishes a 180-day deadline for a provider to submit a statement of charge for a medical expense, subject to the statutory exception identified in the law.
Additionally, a medical provider may not knowingly attempt to collect from an insured a medical charge covered by PIP that exceeds the maximum amount permitted under the new statute.
When Do the New PIP Rules Apply?
The legislation specifically provides that certain provisions apply to basic and added reparation benefits issued or renewed on or after the effective date of the Act, July 15, 2026.
The law became effective in 2026, and Kentucky’s Department of Insurance has issued guidance concerning the legislation and the state’s no-fault system.
Because the applicability of the new provisions can depend upon the policy and when it was issued or renewed, accident victims should not automatically assume that every accident occurring around the effective date will be treated identically.
PIP Is Different from the Personal Injury Claim Against the At-Fault Driver
It is also important not to confuse PIP benefits with the injured person’s liability claim against the driver who caused the accident.
PIP is designed to provide certain economic-loss benefits without regard to fault.
A separate personal injury claim may seek damages from the at-fault driver for losses that are not fully compensated through PIP, including applicable medical expenses, lost income, pain and suffering, and other legally recoverable damages.
The fact that an insurance company pays PIP benefits does not necessarily mean that the injured person’s personal injury claim has been resolved.
The Bottom Line
If you have been injured in a Kentucky automobile accident, the 2026 PIP changes may affect how your medical expenses, lost wages, replacement services, and other economic losses are paid.
The most notable changes include:
- Weekly work loss/replacement services limit: increased from $200 to $500.
- Funeral, cremation, and burial expenses: increased from $1,000 to $5,000 as a qualifying medical expense.
- Basic PIP maximum: remains $10,000 per person per accident.
- Medical-billing rules: new limits and requirements apply to PIP medical expenses.
- Medical bill submission: providers generally have 180 days to submit charges, subject to statutory exceptions.
- Policy applicability: certain changes apply to basic and added reparation benefits issued or renewed after the law’s effective date.
Because the interaction between PIP, liability insurance, health insurance, and an injured person’s underlying tort claim can be complicated, anyone seriously injured in a Kentucky collision should have the insurance policies and PIP benefits reviewed carefully before settling the claim. Contact the attorneys at Rittgers Rittgers & Nakajima for assistance with your case.