Is Kentucky a No-Fault State? What That Means for Your Claim

People don’t always think about how their car insurance works until they’re involved in a car accident. Kentucky is a “choice no-fault” state. Our state’s insurance system is a little more nuanced than what you’ll find in most other states.

What does this mean? It means that most drivers are covered under a no-fault system, but you do have other options. Understanding your next steps and who’s responsible for covering your accident-related expenses is crucial. Call Crandall & Pera Law, LLC to schedule a time to meet with a car accident lawyer.

What does “no-fault” mean in Kentucky?

Many states are either clear no-fault or at-fault states when it comes to car accidents and insurance. Kentucky is more complex. In a no-fault structure, drivers seek compensation from their own insurance provider after an accident, no matter who is at fault. This compensation typically comes from their Personal Injury Protection policy.

PIP coverage is intended to give accident victims fast, easy-to-access financial support after a collision. It generally covers medical expenses, lost wages (to a degree), and some out-of-pocket costs.

The main benefit is that you don’t have to prove that the other driver caused your injuries to receive compensation for them. In an at-fault state, you have to prove that the other party is responsible for the accident.

Is Kentucky a no-fault state or an at-fault state?

While Kentucky is generally a no-fault state, it isn’t solely no-fault. It’s structured as a choice no-fault state.

By default, drivers are part of the no-fault system, and their insurance policies include Personal Injury Protection coverage. However, under state law, drivers can opt out of no-fault coverage in writing when purchasing or renewing an auto policy.

Essentially, there are two systems running in the state at any given time. If a driver remains in the no-fault structure, they have to follow the rules of that system first. If they opt out of the no-fault setup, they can pursue claims as they would in an at-fault state.

How Kentucky insurance works after an accident

If you have Kentucky no-fault insurance, you pursue compensation through your own insurance company after an accident. You file your claim under your policy’s PIP coverage, which then compensates you for qualifying expenses. You receive that money no matter who is at fault. Typically, these policies cover up to $10,000 per person.

The benefit of PIP coverage is how quickly it provides compensation after an accident, which can be especially helpful to those who are unable to work after a crash and find their medical costs increasing. However, its limitation is that it can run out all too quickly if a victim suffers severe injuries.

When can you step outside the no-fault system?

Even if you do not opt out of the no-fault system, there are cases where you can pursue compensation outside the no-fault system. Generally, a person may pursue certain tort claims outside Kentucky’s no-fault limitations if medical expenses reach at least $1,000 or if the accident caused certain qualifying injuries. Qualifying serious injuries include permanent disfigurement, broken bones, permanent injury, or death. In the case of death, the decedent’s estate’s personal representative would file the claim.

Once you have met one of these thresholds, you are no longer limited to PIP benefits. You can file a claim and attempt to recover full damages.

What happens if you opt out of no-fault coverage?

Drivers who reject Kentucky’s no-fault tort limitations generally preserve broader rights to sue without meeting the statutory injury threshold. You do not have to meet a certain threshold to file a lawsuit against the at-fault party.

There are advantages and disadvantages to this route. While you have broader rights to seek compensation after an accident, you may not have funds available to you immediately after an accident. You generally have to wait until the claims process plays out in its entirety, whether it ends in a settlement or a lawsuit.

For some drivers, it makes sense to opt out. For others, it creates financial pressure that they can’t financially tolerate.

What about comparative negligence in Kentucky?

Kentucky is what’s known as a pure comparative negligence state. This means that even if you are partially at fault for an accident, you may still be able to recover compensation. The compensation you receive is just reduced proportionately to your share of liability. For example, if you are found to be 30% liable for the collision and you incurred $100,000 in damages, your compensation would drop 30% to $70,000. But if you were found to be 70% liable, your compensation would decrease to $30,000.

What does this mean for your claim? The way that fault is assigned can have a major impact on how much you ultimately receive. You should expect the insurance company to go to considerable lengths to shift as much of the blame as possible onto you. Every percentage point of blame they are able to put on you may represent thousands of dollars that their company does not have to pay.

This is why it’s important to have a car accident attorney after a car accident in Kentucky. The other party’s car insurance company may push back aggressively against your claim. If you have PIP coverage, they may try to argue that you don’t meet the threshold to sue. If you do not have PIP coverage, they will try to shift as much blame away from their client as possible.

Plan your next steps with Crandall & Pera Law, LLC

If you’ve suffered injuries in a Kentucky car accident, it’s time to fight for full and fair compensation. Schedule your consultation now by calling us or sending us a message online.