What Is Kentucky No Fault Insurance?

Two Drivers Arguing After Traffic Accident

In terms of car insurance, the state of Kentucky has unique laws. The Kentucky Driver Manual states that basic no-fault personal injury insurance and liability insurance should cover every motor vehicle operating or registered in Kentucky.

No-fault insurance laws in Kentucky mean that if you’re involved in an accident, you’ll have coverage for lost wages and medical bills, regardless who’s at fault for the accident. Besides that, if you’re a resident of Kentucky with no-fault insurance coverage and you’re involved in an accident in another state, you’re still entitled to the benefits of the no-fault insurance—no matter who was at fault. 

What Does No Fault Insurance Cover?

Also known as Personal Injury Protection (PIP), Kentucky no-fault insurance provides coverage if you’re injured because of a vehicle accident, as long as the accident wasn’t work-related and you haven’t rejected the PIP coverage. 

Other than the above exclusions, you’re covered. Whether you were a driver, cyclist, passenger or pedestrian at the time of the accident, your no-fault car insurance policy will pay for your medical expenses and other costs, like replacement services and lost wages.

By law, you must issue a payment wreck within a month of submission of those expenses. Every Kentucky resident driver will get at least USD$10,000 from their basic no-fault insurance. You must first use this insurance to pay for your medical bills, even if you have your own health insurance.

How Does Kentucky No Fault Insurance Work? 

You should file for no-fault insurance claims within two years from the accident date. 

Your insurance policy will provide coverage for the driver and all passengers. If the other driver was at fault, their insurance company will be the one to pay your insurance provider back for the benefits it paid to you.

If you were a passenger and the vehicle wasn’t insured, you may still claim for no-fault insurance benefits through your insurance provider. If you were a cyclist or a pedestrian, you may claim the benefits through the other driver’s insurance company. If the vehicle wasn’t insured, you can claim the benefits via the Kentucky Assigned Claims Bureau.

However, it’s important to note that no-fault insurance may not cover all of your expenses, and it doesn’t cover your suffering and pain from the accident.

When Kentucky No-Fault Insurance Doesn’t Apply

Individuals who have no-fault insurance coverage, who are involved in a vehicle accident, may get benefits through a car policy. But there are cases when basic benefits won’t carry through, which include:

  • No-fault insurance doesn’t pay to repair damages to vehicles involved in the accident. 
  • Unless bought for a motorcycle, neither passenger nor the operator of the motorcycle may get benefits. If the owner of the motorcycle elects not to buy the basic no-fault insurance coverage, they’re considered as having accepted the limitations of their rights, unless a rejection form of no-fault insurance is filed. 
  • If it’s a work-related accident, no-fault insurance won’t apply. However, it may apply if the accident wasn’t work-related. For instance, going out for lunch or driving to your workplace is considered as not work-related.
  • Policy owners may exclude particular people in their household from a no-fault insurance policy via a Named Driver Exclusion.
  • If the individual who sustained injuries was in a vehicle that doesn’t fit the definition of the Kentucky no-fault insurance law, such as construction equipment, farm tractors, and city trolleys.
  • When the vehicle owner sustained injuries and the vehicle wasn’t insured.

Aside from that, if car accident injury claims meet the statutory threshold of the state, the claims are exempted from the rules of no-fault insurance. In Kentucky, the thresholds are: 

  • The accident caused permanent disfigurement, bone fractures, or any permanent loss of body function and permanent injury.
  • The accident resulted in more than USD$1,000 in medical expenses.

For people who find it hard to claim for Kentucky no-fault insurance benefits, it’s essential to take the case to an experienced lawyer to discuss concerns and questions.

What Should You Do If Your Kentucky No-Fault Insurance Benefits Run Out?

Car accidents may rack up medical expenses and repair bills, which may cost more than the USD$10,000 basic no-fault insurance covers. Insurance companies might not release the payment right away, because they’ll be in discussions with the medical provider over the treatment costs. This can affect your credit score negatively and result in other concerns later on. 

One of the best solutions you can consider if you don’t want to suffer lost wages from not being able to work is to purchase excess PIP insurance. You may get more PIP coverage from your current insurance company. 

Like coffee, the first cup would cost you, but once you go up in size, it’s not much more expensive. However, unlike coffee, having more PIP can help ease your stress should you be involved in a motor vehicle accident. This is because it can help you cover the other expenses you’ve spent after sustaining injuries or damages your no-fault insurance won’t cover. So, if you can, getting more PIP coverage won’t give you any regrets in case an accident happens. 

Another option you can consider is purchasing underinsured motorist coverage. This insurance will protect you if the other driver is not properly insured. It’s the most crucial coverage you may have on your vehicle, because many people take out as little insurance on their vehicles as possible.

To protect your family and yourself, get additional underinsured motorist insurance. It’ll cover you and anybody in your vehicle for medical expenses, pain and suffering, and lost wages.


The no-fault insurance laws in Kentucky can be hard to understand. Therefore, you should educate yourself to know how it works, what it covers, and when it doesn’t apply. With a better understanding about Kentucky no-fault insurance, it’ll be much easier for you to file a claim as soon as possible.

If you still have doubts about how it works and what you can do to claim for benefits, consult a lawyer who specializes in no-fault insurance. They’ll also help you if your claim is unsuccessful, even though it met all the requirements.


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What Is Kentucky No Fault Insurance?