Kentucky’s no-fault insurance system aims to simplify the claims process, but it can also cause confusion about when and how you can get additional compensation.
If you’ve been injured in a car accident, you may be wondering who is financially responsible for the damages and how you’ll pay the injured party, which can be complicated by the state’s “no-fault” policies in Kentucky.
A Kentucky accident claim depends on a unique set of rules known as the “no-fault” insurance system. No-fault insurance is intended to streamline accident claims and reduce the number of lawsuits, but it can also limit your ability to sue unless certain conditions are met.
A Lexington personal injury attorney can help you understand how the system works, as well as how to protect your rights after an accident.
What is Kentucky’s no-fault insurance system?
As an “opt-in no-fault” state, drivers in Kentucky can decide whether or not to participate in the no-fault system when they purchase insurance.
When deciding whether to opt in or out, it’s important to understand that with no-fault coverage, your insurance company will pay for your medical bills, lost wages, and other expenses after an accident, regardless of who was at fault for the accident. This coverage is known as Personal Injury Protection (PIP) and typically covers up to $10,000 per person.
This has the advantage that drivers have immediate access to medical care and compensation without having to wait through a lengthy court process.
How does this limit your right to sue?
If your injuries meet any of the determined thresholds, you can step outside the no-fault system and file a personal injury lawsuit against the driver who caused the accident.
No-fault insurance restricts your right to file a lawsuit against the at-fault driver unless your injuries meet certain thresholds. You cannot recover pain and suffering or other non-economic damages unless your case meets one of these conditions.
- Your medical expenses exceed $1,000 or
- You suffered a broken bone, permanent disfigurement, permanent injury, or an accident that resulted in death.
However, in cases where your injuries meet these thresholds, you can file a personal injury lawsuit and pursue compensation.
Choosing no-fault coverage
If you opt out of the no-fault system in Kentucky, you will have unlimited rights to file a lawsuit after an accident. The caveat is that this also means other drivers can sue you. This exposes you to more legal liability if you cause an accident.
It is important for drivers to understand the insurance policies they are signed up for.
Why Legal Guidance Matters
Determining whether or not your injuries meet Kentucky’s threshold for filing a lawsuit isn’t always straightforward. Insurance companies may discount your injuries or push for a quick settlement that doesn’t cover your full damages.
Kentucky’s no-fault insurance system aims to simplify the claims process, but it can also cause confusion about when and how you can get additional compensation. If you have been injured in an accident, knowing your rights and when you can legally opt out of the no-fault system is critical to obtaining fair recovery.
