Kentucky is known as a choice no-fault state. This means that the Personal Injury Protection (PIP) insurance you purchase covers you and the passengers in your vehicle in the case of most auto accidents, no matter who causes them.
This no-fault insurance also limits your ability to sue others, although there are some exceptions, typically relating to significant bodily harm. You also can reject no-fault insurance in Kentucky and retain your right to sue others in an accident.
What is the tort threshold in Kentucky for a third-party claim?
In Kentucky, the tort threshold for a third-party claim is determined by the no-fault system, which requires an individual to exceed $1,000 in medical expenses or suffer serious injury or death before they can pursue a claim against the at-fault party.
Kentucky is a “choice no-fault” state. This means that a Kentucky motorist can choose to insure their vehicle under the tort system, which is the insurance option available in most states, or they can choose the lesser-available no-fault system.
If a driver rejects the no-fault system, they must sign a form with the Department of Insurance, opting to keep their right to sue others. A caveat is that others also have the right to sue them.
What is no-fault insurance in Kentucky?
In Kentucky, motorists are required to purchase Personal Injury Protection (PIP) insurance. This insurance pays the cost of injuries you have regardless of who was at fault in the accident. With KY PIP, the basic coverage is $10,000 for medical expenses, loss of income or services, and funeral expenses. However, you can choose higher benefits and deductibles.
An important component of personal injury protection coverage in Kentucky is that 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. Injuries that may allow you to file an additional claim include broken bones, permanent injuries, disfigurement or death, and if medical expenses exceed $1,000.
Individuals who are riding in your car at the time of an accident also are protected by your PIP policy. Additionally, this coverage extends to anyone who might be struck by your car. If you choose no-fault insurance in Kentucky, you must purchase liability insurance. The minimum requirements in Kentucky are:
- $25,000 for injuries per person in a single accident
- $50,000 for all injuries resulting from a single accident
- $25,000 for property damage resulting from an accident
This insurance protects you from damage to another vehicle if you cause a car accident in Kentucky.
What is tort insurance in Kentucky?
The other type of insurance available in Kentucky is tort insurance. To opt into this, individuals must fill out the Commonwealth of Kentucky’s No-Fault Rejection Form. Individuals rejecting the no-fault option in Kentucky cannot receive no-fault benefits. They also may find that their insurance premiums are higher.
Most states are tort states. Many people may not even be aware that their insurance is based on this if they do not hear that term when they purchase insurance. That’s because the tort system is the set of laws for how insurance operates in that state.
With the tort system, the driver involved in an accident is responsible for the property damage and/or bodily injury they caused to another driver. However, with the Kentucky 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.
In comparison, when Kentucky drivers accept no-fault insurance on their car insurance policy, they agree to limit their ability to seek compensation for injuries caused by other drivers with some exceptions. But, by rejecting no-fault coverage, you are not protected from lawsuits if you cause injuries to another party in an accident.
Get car insurance quotes for Kentucky car insurance.
Source
Kentucky Department of Insurance. “No Fault Rejection/Verification (PIP).” Accessed January 2023.
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