Kentucky is a "choice no-fault" state. As such a KY motorist can choose to insure their vehicle under the tort system or the no fault system.

Under a tort system each driver involved in an accident is responsible for the property damage and/or bodily injury they caused. Also with a KY tort system you retain the right to sue the other driver in an accident for the cost of expenses related to injuries sustained in the accident.

Under the KY no-fault insurance system, you are required to purchase personal injury protection (PIP) coverage that helps pay the cost of injuries regardless of who was at fault in the accident. If you choose the no fault option, basic KY PIP coverage is $10,000 for medical expenses, loss of income or services, and funeral expenses.

When buying the basic PIP coverage in Kentucky you forfeit your right to sue the other driver in an accident for the cost of injuries, unless the cost exceeds a certain level set by the state. Kentucky insurance companies will allow you to buy back that right (even though you carry PIP) for an increase in your premium. This is referred to as "buy back" PIP.

Under either the no-fault or tort system, drivers in Kentucky are required to purchase basic liability coverage (bodily injury and property damage) in the state’s minimum amounts of 25/50/10. Uninsured and underinsured motorist must be offered by an insurance company but can be waived in writing if one does not wish not to purchase these coverages.

In addition, PIP coverage must be purchased for all passengers that are not immediate family members. This is referred to as Guest PIP. It is basically a type of coverage that must be purchased if basic PIP has been rejected by the insureds listed on a policy.

As the Kentucky Department of Insurance (DOI) describes, when you purchase auto liability coverage you also purchase PIP coverage for you, your family and guest passengers (when choosing the no-fault system). The State of Kentucky however allows you to reject PIP for you and your dependents (under the age of majority) but not a spouse. Your spouse can reject as well but he/she must sign the rejection form. This means that you, your spouse and your household are choosing the tort system.

Under Kentucky law, the policyholder cannot reject PIP coverage for any guest passenger, thus Guest PIP is required to be carried. This coverage entitles the guest passenger to at least $10,000 of medical expenses, lost wages and similar "out-of-pocket" costs if injured while riding in the covered vehicle.

If you need to know more about Kentucky insurance you can get a quote with us and review our Coverage help when selecting your coverages. You will learn this:

The no-fault coverage option you select determines your right, and the rights of other drivers on your policy, to sue for damages resulting from an accident. The option you select reflects the circumstances under which drivers on your policy can seek compensation for pain and suffering and other non-monetary damages.

Each carrier offers different options under this selection.

Each driver on your policy has the right to accept or reject no-fault coverage. Your coverage requirements and premium will vary based on these selections.
You're required to select one of the following no-fault options:

All drivers accept no-fault:
By choosing this option, all drivers on your policy agree to limit their ability to seek compensation for injuries caused by other drivers, unless they have over $1,000 in medical expenses or suffer a serious or permanent injury as the result of an accident.
Generally, by selecting this option, you can expect to pay a lower premium than if you were to reject no-fault coverage.

Under this option you’re required to carry personal injury protection (PIP) coverage, which covers medical expenses, lost wages, essential services, and funeral expenses as the result of an accident. PIP pays for up to the limit of your medical bills (excluding the deductible you select), regardless of who is at fault in the accident.

Some drivers reject no-fault:
Drivers on your policy who reject the no-fault option are unrestricted in their right to seek compensation for injuries caused by other drivers. However, by rejecting this coverage, these drivers are not protected from lawsuits if they cause injuries to another party in an accident.
Drivers on your policy who accept no-fault agree to limit their ability to seek compensation for injuries caused by other drivers, unless they have over $1,000 in medical expenses or suffer a serious or permanent injury as the result of an accident.
Generally, by selecting this option, you can expect to pay a higher premium than if all drivers were to accept no-fault coverage.

Under this option you’re required to carry personal injury protection (PIP) coverage, which covers medical expenses, lost wages, essential services, and funeral expenses as the result of an accident. PIP pays for up to the limit of your medical bills (excluding the deductible you select), regardless of who is at fault in the accident.

All drivers reject no-fault:
By choosing this option, all drivers on your policy are unrestricted in their right to seek compensation for injuries caused by other drivers. However, by rejecting this coverage, these drivers are not protected from lawsuits if they cause injuries to another party in an accident.
Generally, by selecting this option, you can expect to pay a higher premium than if all drivers were to accept no-fault coverage.

Under this option you are not required to carry personal injury protection (PIP) coverage; however, you must carry guest personal injury protection coverage to provide no-fault coverage to guest passengers in your vehicle.