No-Fault Insurance, Basic Reparation Benefits, PIP or Personal Injury Protection

Whether is called Personal Injury Protection, PIP benefits, No-fault Insurance or basic reparation benefits, It all refers to the same kind of insurance coverage. Kentucky is a no-fault state, Indiana is not. Indiana is what is called a med-pay state. This means that you have to purchase specific coverage from your auto insurance to cover your medical bills and there is not a specific amount of med-pay coverage required by law.

KENTUCKY IS A NO-FAULT STATE BUT,

You Can Sue The At-Fault Driver For Your Personal Injury Damages!

Most people think that because Kentucky is a no-fault state, you can’t sue the other person for your personal damages. This idea is completely incorrect!

No-Fault coverage is a wonderful thing. It means that your medical bills, lost wages and some other damages, will be paid by the insurance company for the vehicle you are riding in, regardless of how the accident happens. If that insurance company can recover the PIP benefits they pay on your behalf from the at-fault driver, they will. However, they must pay these benefits up front. The idea being that your medical bills and treatment should not have to wait because someone contends that they were not at fault in causing the car crash.

For example, if you are driving in my car and another driver causes a car wreck, my insurance company will pay for the first $10,000 of your medical expenses if your medical expenses are reasonable and related to the injuries sustained in the automobile accident. If I was at-fault in causing the automobile accident, you would still be entitled to this coverage.

No-fault benefits, also called basic reparation benefits and personal injury protection (“PIP”), are designed to make sure that you can get the medical treatment you need in the case of an accident. No-fault coverage typically includes several other kinds of losses that can also be recovered, medical expenses and lost wages tend to be what it is primarily used for. No-fault insurance will also pay your medical expenses as your treatment is incurred rather than a lump settlement after your treatment is completed.

Under the Kentucky Motor Vehicle Reparations Act, there is a statute that is referred to as the abolition of tort liability. This is a fancy way of saying that in exchange for these PIP benefits, you give up the right to recover any medical bills, lost wages or other elements which are payable as no-fault benefits. It makes sense. The insurance company pays the benefits so they, not you, should have the right to recover what these benefits.

The one caveat is that under Kentucky law, if you are driving around uninsured, you still cannot recover the first $10,000 in medical expenses from the at-fault driver. Basically, to penalize those who drive without auto insurance, the law says it is still the right of this non-existent insurance company to recover the first $10,000 in what would have been PIP benefits. Since Indiana is not a no-fault state, Indiana law still allows you to recover all of your medical expenses from the at-fault driver even if your vehicle was uninsured.

HOW MUCH NO-FAULT INSURANCE DO I NEED?

In Kentucky, the law does not allow an automobile insurance policy to have less than $10,000 in no-fault coverage. However, I recommend that you carry at least $30,000 per person in insurance coverage. In my experience, this coverage tends to be very cheap and such an amount increases your likelihood to get the medical treatment you need as a result of the automobile accident. Further, the basic $10,000 of no-fault insurance is not “stackable”. However, added or optional no-fault coverage is. What this means is that if you have purchased $30,000 of no-fault on all three of the cars you own, you may have $70,000 in insurance coverage for the car wreck.

While Indiana is not a no-fault state, I still would suggest you purchase at least $10,000 in med-pay coverage. It can cover the expenses your health insurance does not cover.

The Kentucky State Bar requires me to say that COURT COSTS AND CASE EXPENSES WILL BE THE RESPONSIBILITY OF THE CLIENT.

The Desmond Law Office is a Louisville, Kentucky personal injury firm that focuses the practice on motorcycle, trucking, and auto accidents. We offer effective and aggressive legal representation to accident victims and their families. If you've been injured in a car, motorcycle or tractor trailer wreck, contact us now for a free case review.