Kentucky Auto Insurance and No-Fault System

Kentucky has adopted the no-fault model for car insurance coverage. This means with the exception of very serious injuries, a person who has been involved in a car accident will look to his or her own insurance company to pay for damages. Not all drivers in the state choose the no-fault system for their coverage, however. The state allows consumers to choose whether they would like to buy no-fault coverage or retain the right to sue to recover damages.

All drivers in Kentucky are required to have liability insurance coverage in place. This type of coverage pays for damages sustained by the occupants of the other vehicle following an accident. Even if a car insurance buyer chooses no-fault coverage, they still have the right to sue if the injuries are beyond a certain threshold.

Kentucky residents must also have Personal Injury Protection (PIP) coverage in place. The minimum level of coverage required by law is $10,000. This portion of the policy pays for the driver’s own expenses following an accident and covers the following:

  • Medical bills
  • Lost wages
  • Funeral expenses

A person who has a good health insurance plan in place may want to limit his or her PIP to the minimum required level, while someone with a limited benefits plan may want to consider a higher level of protection.