Drivers in Kentucky can declare whether they want to buy a no-fault car insurance policy or if they want to go with the tort system if they are involved in an accident. Each choice has its advantages and disadvantages, and should be considered carefully before making a decision.
In a no-fault system, people who have been injured or have had their vehicle damaged in an accident make a claim to their own insurance for compensation. The advantage to this car insurance system is that claims can be dealt with a lot faster than if they had to go through the court system.
Kentucky residents who have been injured in an accident still the right to sue if their injuries meet the threshold for litigation set by the state. For that reason, drivers are required to have liability insurance in place.
The issue with no-fault is that the amount of damages that an injured person can recover for medical expenses and lost wages is limited. Since an injured person’s ability to collect damages is capped, it is a less expensive type of insurance to buy. Choosing to go with a tort policy means that a car insurance buyer retains the right to sue if he or she is injured in an accident and he or she has the potential to collect a higher level of damages.