Kentucky’s No Fault Car Insurance System

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Since Kentucky’s Motor Vehicle Reparations Act became law in 1975, Kentucky has been a no fault car insurance state or, more accurately, a choice no fault car insurance state since each individual who is purchasing car insurance may decide to opt out of the no fault provisions.

No Fault Car Insurance in Kentucky

Pursuant to Kentucky law, each driver’s car insurance policy must include a minimum of $10,000 personal injury protection (PIP) coverage. This means that when the driver is in an accident, the driver’s own insurance will cover the driver’s medical expenses, lost income, and other costs up to the amount of PIP coverage, regardless of who was at fault for the crash.

Additionally, unless a driver opts out of limited tort rights as described below, the driver may not sue and may not be sued for accident injuries unless the injury causes more than $1,000 of medical expenses or the injury includes a broken bone, permanent disfigurement, another type of permanent injury, or death.

How to Opt Out of No Fault Car Insurance in Kentucky

The Commonwealth of Kentucky has specific procedures that must be followed if you want to opt out of no fault car insurance. In order to opt out you must do so in writing and on the No-Fault Rejection Form that is available from the Kentucky Department of Insurance. If you have completed this form, you may sue even if you don’t meet the minimum threshold for medical expenses or suffer a specific injury. However, at the same time, you also open yourself up to being sued.

You cannot make the decision about whether to opt out of no fault insurance at the time of your car crash. Instead, you must do so when you purchase car insurance and that decision will be binding for the term of your policy.

Protect You Rights After Any Car Accident

Regardless of whether it is your insurance company or someone else’s that should be paying your damages, it is important to do everything you can to protect your right to a fair recovery. The experienced Louisville car accident lawyers of Gray and White Law are here to help you if you have been seriously hurt in a crash. Call us today to schedule a free consultation and to learn more about how to make the recovery you are entitled to pursuant to Kentucky law.