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What Is Pip Insurance and How Is It Used?

Wilson & McQueen Dec. 22, 2022

PIP stands for “personal injury protection” and it exists to provide funds to the individual involved in an accident, including medical expenses, lost wages, and other out-of-pocket bills due to the accident. Kentucky has its own specific way of handling matters of insurance. For starters, Kentucky is a “no-fault” state, which means that every Kentucky driver must carry insurance and when people are involved in an accident, drivers can go to their own insurance company to file a claim for damages, even if they were at fault.

In addition to the requirement of insurance for all Kentucky drivers, every driver must also have a minimum of $10,000 in personal injury protection insurance. This amount applies per person and for one/each accident.

How Do I Obtain PIP Funds After an Accident?

The first step in obtaining your PIP coverage is filing a claim with your insurance company. They will ask you for the name of whoever purchased the insurance policy. The insurance company does not just send the funds your way upon a simple request. You must be ready to provide documentation about the accident: including medical information, proof that you have lost income due to the accident, and if you have spent money to cover things due to the accident, receipts for those items.

It is critical to retain evidence after an accident because while Kentucky is a “no fault” state, disputes can still arise, and having adequate and complete information can help secure your PIP funds if the insurance company believes that you are owed that money.

How Is PIP Paid?

PIP is by your insurance company directly to you, your medical provider, or wherever it the expenses took place.

Are There Any Exceptions to These Rules?

Yes. PIP insurance can get quite complicated. There are certain circumstances in which PIP insurance does not apply, which can be the source of disputes and problems. If disputes occur, the case is sent to the Kentucky Insurance Arbitration Association.

Car accidents are no joke- and it is key for you to have the knowledge necessary to navigate your way through the process.