Kentucky No-Fault Car Insurance

Kentucky is a "choice no-fault" state, meaning that vehicle owners can "opt out" of the no-fault car insurance system and choose to sue (and potentially be sued) after a car accident.

By , J.D. · University of San Francisco School of Law

Kentucky is a "choice no-fault" state when it comes to car insurance coverage and injury claims after a car accident. Here's what to know:

  • With no-fault car insurance, your own insurance policy covers your medical bills and other economic losses after a car accident, regardless of who caused the accident.
  • You can opt out of the no-fault system in Kentucky, preserving your right to sue an at-fault driver after a car accident.
  • Kentucky vehicle owners must carry certain minimum amounts of auto insurance, including liability coverage.

"Choice No Fault" Car Insurance in Kentucky

Kentucky is one of around a dozen states that follow some variation of no-fault car insurance for purposes of compensation for car accident injuries. In a traditional no-fault state, each driver turns to their own car insurance policy to get compensation for medical bills and certain other financial losses stemming from the accident, regardless of who was at fault. No liability claim against the at-fault driver is possible unless the circumstances allow for an exemption from the no-fault system (more on these circumstances later).

What Is Covered Under Kentucky No-Fault Car Insurance?

In Kentucky, no-fault takes the form of "personal injury protection" (PIP) benefits, which pay up to $10,000 for:

  • medical bills resulting from car accident injuries
  • lost wages, and
  • similar "out of pocket" costs resulting from the accident, i.e. the cost of hiring someone to perform household tasks you're unable to do because of your injuries.

Note that higher benefits (more than the basic $10,000) are available at an additional cost when you purchase a car insurance policy in Kentucky.

Who Is Covered Under Kentucky No-Fault Car Insurance?

After an accident, it's not just the policyholder who is entitled to PIP benefits in Kentucky. Other covered individuals include:

  • anyone who was driving or riding in the vehicle at the time of an accident, and
  • a pedestrian or bicyclist hit by the covered vehicle.

Rejecting No-Fault Car Insurance In Kentucky

Vehicle owners may essentially "opt out" of the no-fault system when choosing and purchasing a car insurance policy in Kentucky. By opting out, the policy purchaser preserves the right to pursue a liability claim or personal injury lawsuit against the at-fault driver.

Of course, by opting out, the policyholder also opens him/herself up to the risk of being sued, if found at fault for the crash. This is why Kentucky's system is known as "choice no-fault." But remember, by opting out of no-fault, you're not entitled to mandatory first-party PIP benefits from your own insurer.

The rejection of no-fault must be in writing, on a special form filed with the state's Department of Insurance. (See the Kentucky No-Fault Rejection Form.) Unless and until the Department of Insurance is notified, in writing, of any changes to the driver's car insurance elections, the rejection will remain in effect.

Note: If every member of a household files no-fault rejections with the Department of Insurance, any car insurance policy on a family vehicle must include "guest" PIP coverage, which will apply to a passenger or pedestrian who is injured in an accident involving the family vehicle.

No-Fault Thresholds In Kentucky

Even when a vehicle owner decides to go with no-fault coverage, if their car accident injury claim meets the statutory threshold, it will be exempt from the no-fault rules (again, that means a liability claim or lawsuit is possible against the at-fault driver). In Kentucky, those thresholds are:

  • the accident resulted in at least $1,000 in medical bills, or
  • the accident caused the claimant's permanent disfigurement, fracture of a weight-bearing bone; compound, compressed, or displaced fracture of any bone; any permanent injury, or any permanent loss of a body function.

Does Kentucky No-Fault Insurance Apply to Vehicle Damage?

The no-fault car insurance rules we've discussed here only apply to injury claims after a car accident. You're free to pursue a vehicle damage claim against the at-fault driver after a car accident—by filing a third-party car insurance claim through that driver's car insurer, or a small claims court lawsuit, for example.

Car Insurance Requirements in Kentucky

Besides PIP coverage, Kentucky requires vehicle owners to maintain minimum amounts of "liability" car insurance, which applies to injuries and vehicle damage suffered and sustained by others when you're at fault for an accident. The minimum liability coverage requirements in Kentucky are:

  • $25,000 for injuries per person, in a single accident you caused
  • $50,000 total, for all injuries resulting from a single accident you caused, and
  • $10,000 for property damage resulting from any accident you caused.

Note: You can always purchase a car insurance policy with higher liability limits. If you're found at-fault for an accident, and the injured person's losses exceed the limits of your coverage, you'll be on the hook to make up the difference out of your own assets.

Get more information on Kentucky Car Insurance (from the state's Department of Insurance). And if you've been involved in a car accident, especially if your injuries are serious, you might want to learn more about your options under Kentucky law. See how an attorney can help with your car accident case, or connect with a car accident lawyer in your area using the tools right on this page. Answer a few questions about your situation and get a free case evaluation.

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