How Personal Injury Protection Benefits Work in Kentucky

When purchasing your auto insurance policy, be very wary of the deductible and if you’ve unintentionally opted-out of the Personal Injury Protection coverage.

To completely understand PIP insurance in Kentucky, you must understand the state of Kentucky’s no-fault system for insurance. This means that regardless of who might’ve been at fault in an accident, one’s own insurance company will pay a certain amount of their damages.

According to the Kentucky Motor Vehicle Reparations Act, insurance companies throughout the state are required to offer Personal Injury Protection with any motor vehicle insurance policy sold. These policies typically offer $10,000 worth of PIP per accident per person. Additional coverage is purchased at higher prices. 

Is PIP Mandatory in Kentucky?

While PIP insurance is required to be offered with every single motor vehicle insurance policy across the state, people can waive their rights to this insurance by producing and submitting a document to the state giving up their PIP benefits.

It is important to note that PIP insurance is not mandatory for motorcyclists. So, if you’re injured in an accident with a motorcycle, you need to double check if they’ve elected PIP coverage.

How much does Personal Injury Protection pay to cover accident injuries?

The absolute minimum that all automotive insurance companies are required to offer with insurance policies is $10,000 per person per accident. These funds go towards paying for medical expenses, lost wages, and additional out-of-pocket expenses related to the accident injury.

However, most car insurance companies offer the opportunity to purchase additional coverage on top of the $10,000 minimum. You’ll pay a higher premium, but it could make all the sense in the world when you’re seriously injured in an accident and need costly medical treatment.

When purchasing your auto insurance policy, be very wary of the deductible and if you’ve unintentionally opted-out of the Personal Injury Protection coverage. In addition, consult with a personal injury lawyer in Kentucky to ensure that the insurance company has honored all their commitments. 

Are there situations where PIP would not apply?

It is worth mentioning that there are a few situations where PIP benefits would not automatically apply to a motor vehicle policy. These situations include:

• If the motor vehicle accident was work related.
• If the injured person is riding a motorcycle. (Note that motorcyclists can purchase optional PIP benefits).
• If the injured person had no valid car insurance. 
• If the injured person has rejected PIP from their policy.

Who pays PIP benefits?

PIP is a little different than using standard car insurance in that you don’t always have to seek compensation from the insurance company of the person at fault. With PIP, which insurance company will pay will largely depend on the situation of the accident. Kentucky revised statutes 304.39-050 goes over the priority of which insurance company will cover damages from an accident as follows:

• If you’ve been injured in an auto accident, you would file your PIP claim on the policy covering the vehicle you’re in. This applies whether the car is yours or not, as long as the car is insured. 
• If the vehicle you’re in is not covered by an insurance policy, you can file a PIP claim with your own car insurance.
• If you’re struck as a pedestrian, either the at-fault party’s insurance or your insurance (if they’re uninsured) will pay the claim. 
• If you’re struck as a pedestrian, and neither you nor the at fault driver are insured, you can file a PIP claim with the Kentucky Assigned Claims Plan.