You were just in a car accident. Who pays the hospital bill?

In Kentucky, the answer is often: Your own insurance.

Kentucky operates under a choice no-fault system governed by the Motor Vehicle Reparations Act (MVRA). For the vast majority of drivers who accept this system, this means that after a crash, you first turn to your own insurance policy to cover immediate medical expenses and lost wages, regardless of who was at fault.

This coverage is called Personal Injury Protection (PIP), or Basic Reparations Benefits (BRB), and understanding how it works is essential to securing timely care and protecting your right to sue the negligent driver later.

What is PIP and What Does it Cover?

PIP is the cornerstone of Kentucky’s no-fault system. It is designed to provide quick financial relief for minor to moderate injuries without the delay of proving fault.

Kentucky law requires all standard auto policies to carry a minimum of $10,000 in Basic PIP benefits per person, per accident (though higher limits, called "Added PIP" or "Added Reparations Benefits," can be purchased).

PIP benefits cover economic losses related to your injury:

The Critical Role of the "No-Fault Threshold"

The major trade-off for having quick access to PIP benefits is the limitation on your right to sue the at-fault driver for non-economic damages (like pain and suffering).

You can only "step outside" the no-fault system and pursue a personal injury lawsuit against the negligent driver if your injuries meet one of Kentucky's tort thresholds:

• Medical expenses exceed $1,000

• A fracture of a weight-bearing bone

• A compound, or open, fracture

• Permanent disfigurement

• Permanent injury

• Permanent loss of a bodily function

• Death

In reality, because of the high cost of healthcare, most serious injuries quickly exceed the $1,000 medical bill threshold, allowing a claim to proceed against the at-fault driver.

PIP vs. Lawsuit: The Process

Can I Reject PIP? The "Choice No-Fault" System

Kentucky is a "choice no-fault" state (KRS 304.39-060). You have the option to reject the limitations on your right to sue by formally opting out of the no-fault system with the Department of Insurance when you purchase your policy.

What Choosing to Opt Out Means:

• You lose the right to Basic PIP benefits for yourself and your household.

• You regain the right to sue the at-fault driver for any injury, regardless of the threshold.

• Risk: You must now rely on your health insurance or pay out-of-pocket for medical care until fault is proven, which can be a lengthy process.

For most Kentuckians, keeping the basic PIP coverage is the best safety net, as it guarantees initial treatment coverage.

Why You Need a Lawyer to Navigate PIP

Dealing with PIP is not as simple as submitting a bill. Insurance companies often delay payments, dispute the necessity of treatment, or try to convince you to settle before you meet the threshold.

An experienced Kentucky car accident lawyer will:

1. File Your Claim Properly: Ensure all deadlines are met (benefits must be paid within 30 days of receiving reasonable proof of loss).

2. Maximize Your Benefits: Instruct the insurer on how to allocate the $10,000 benefit (e.g., reserving funds for lost wages or future therapy).

3. Prove the Threshold: Compile medical evidence necessary to prove your injuries cross the statutory threshold, opening the door to the crucial pain and suffering claim against the at-fault driver.

4. Fight Delays: PIP payments that are overdue accrue interest (12% or 18%), and a lawyer will use this leverage against unreasonable delays.

Don't let the confusion of no-fault insurance prevent you from getting the medical care you need.

FAQs: PIP Insurance in Kentucky

Q1: If I am a passenger, whose PIP pays?
A: Generally, the PIP comes from the vehicle you were occupying. If you have your own auto insurance, your own policy is often the primary source.

Q2: Does PIP cover pedestrians or bicyclists?
A: Yes. If a pedestrian or bicyclist is struck by a motor vehicle, they can file for PIP benefits through the policy of the striking vehicle.

Q3: Can I collect PIP if the accident was my fault?
A: Yes. PIP is paid regardless of who was at fault for the accident, which is the definition of a "no-fault" benefit.

Q4: Does PIP cover property damage?
A: No. PIP covers medical expenses, lost wages, and replacement services for personal injury only. Property damage (car repairs) is handled separately under the liability portion of the at-fault driver's policy.

Get Your Benefits and Protect Your Lawsuit Rights

PIP is your right under Kentucky law, designed to pay your immediate bills. But for serious, long-term injuries, PIP is just the start. You need a lawyer to ensure you meet the legal thresholds and can pursue the negligent driver for the full compensation you deserve.

If you have been injured in an accident, contact Alex R. White, PLLC today for a free consultation. We’ll help you navigate the PIP process and fight to recover the maximum damages for your serious injury claim.