No-Fault Car Insurance In Kentucky

Kentucky law requires the owner of a vehicle to carry at least $25,000 for bodily injury liability per person in an accident, $50,000 for all bodily injuries per accident, and $10,000 for property damage per accident.  This is sometimes referred to as 25/50/10.  Also required is  Basic PIP Coverage.  In KY auto insurance on all motor vehicles, except motorcycles, must include basic PIP coverage. Basic PIP benefits pay up to $10,000 for medical expenses, lost wages up to $200 per week, replacement services and survivor’s benefits if someone is injured in a motor vehicle accident, regardless of who may have been at fault.

You must show proof of Kentucky auto insurance coverage each time your vehicle registration is due for renewal. Your auto insurance card is required to be carried in your vehicle at all times.

Auto insurance does not contain a grace period for making premium payments. If the premium is not paid timely, the coverage will end. If paying the entire premium amount at once is difficult, most insurers offer a payment plan.Through investigations, the Kentucky Department of Insurance has uncovered individuals selling fraudulent insurance cards for proof of auto liability insurance. Often the cost of this fake card has exceeded the cost of legally purchased auto insurance.

Be aware that with rising medical costs, the basic coverage may not be adequate to cover a serious injury. You have the option of purchasing additional PIP coverage. Check with your agent for additional coverage available.

Limitations on Right to Sue and be Sued
In exchange for eligibility to receive basic PIP benefits, all persons who register, operate, maintain or use a motor vehicle in Kentucky are deemed by law to have accepted certain limitations on their right to recover damages for bodily injury due to motor vehicle accidents. This means that an injury claim or lawsuit for damages, including pain and suffering, cannot be brought by you or against you unless the injured person has incurred medical expenses greater than $1,000, a broken bone, permanent injury or death. These limitations are called “thresholds.”

You have the option of rejecting basic PIP coverage for yourself, thereby rejecting these limitations. The rejection must be in writing on a special form and must be filed with the Department of Insurance. See your agent for a copy of the form.If you file a no-fault rejection form, you are not entitled to receive basic PIP benefits unless you “buy-back” the coverage. Keep in mind that your liability premium may be higher due to your no-fault rejection, since others will have the same right to sue you for injuries which do not reach the
thresholds. If every member of your household rejects the limitations on their right to sue and be sued, Guest PIP must be included on your policy to provide basic PIP benefits to your passengers and pedestrians.