The goal of Kentucky’s no-fault insurance system is to expedite claims processing and reduce litigation. However, the practical implications of no-fault policies may not fully address all of an accident victim’s needs.
If you were in a serious car accident and you are filing for insurance benefits with your insurance carrier, you should familiarize yourself with some potential gaps. You may need to take action beyond filing a claim on your auto policy.
No-fault insurance does not cover vehicle damage
The no-fault system in Kentucky includes only Personal Injury Protection benefits and not property damage. To pay for a damaged or totaled automobile, you may need to seek compensation from the driver who was responsible for the accident.
PIP coverage may not adequately compensate you for injuries
A debilitating injury that affects your ability to work could interrupt your income indefinitely. The PIP limits in an auto policy may not be nearly enough to compensate you for your lost wages or medical expenses for ongoing care.
It may be possible to get your full damages
There are some situations in which you can initiate a direct claim against the party who caused an accident. If monetary damages exceed a fixed amount or your injury resulted in a disabling condition, you will likely have standing to pursue a legal remedy.
After an accident, it may be possible to get compensation that no-fault insurance excludes. Whether you need to initiate a claim against another driver will depend on the severity of your injuries, the damage to your vehicle, and your policy’s coverage.