What the Heck is No-Fault Insurance?

No-Fault Car Insurance in Kentucky

Clients often ask, “I know this accident was not my fault, but why is there no fault?”  That is a great question, and a chance to explain the laws and insurance requirements that affect our clients injured in auto collisions. 

Kentucky is one of twelve states that have “no-fault” car insurance. This type of coverage goes by several names. The proper name for this coverage in Kentucky, by statute, is basic reparations benefits coverage, or BRB.  Insurance companies typically call it personal injury protection, or PIP, making PIP the most helpful name to remember.

PIP benefits provide payment for medical bills and wage loss to people injured in automobile accidents. In Kentucky, they can also be directed to funeral expenses or survivors’ economic losses after an accident-related death. Unlike a liability settlement, PIP benefits are paid along the way, providing immediate access to medical care and reimbursement of wages when someone has been injured in car accident.

Do insurance companies offer PIP benefits in Kentucky?

In Kentucky, insurance companies are required to offer PIP benefits as part of every car insurance policy. The minimum PIP coverage amount is $10,000 per person, but extra coverage can be purchased.  Benefits will apply to you and other occupants of your vehicle.

So, here is why PIP is often called “no-fault” insurance … you do not have to prove fault in order to claim PIP benefits. PIP coverage will apply regardless of who is at fault or how a wreck happens.  A PIP claim is separate from any liability (fault based) claim you may have and can exist where there is no liability claim at all.

If you have questions about your accident claim or no-fault benefits, don’t hesitate to call us Crocker Law Firm for a free consultation.