As you research what to do after a motor vehicle accident, you likely will encounter the words “no fault state.”
More specifically, if your accident was in Kentucky, you are likely wondering how the words apply to you.
Is Kentucky a No Fault State?
The answer is yes. Kentucky is a no fault state.
So how does Kentucky no fault law work?
What is No Fault?
Here is what “no-fault” doesn’t mean: no-fault law does not mean that there is no fault for an accident in Kentucky. No fault actually refers to insurance coverage. So, the question to ask yourself is: in the case of an accident, what does insurance cover if there are damages or lost items?
You may also see that no fault can be referred to as “basic reparation benefits” or “personal injury protection” (also known as “PIP” coverage).
What is Kentucky No-Fault Law?
The Kentucky No-Fault Act is a set of laws that dictate how to handle motor vehicle and motor vehicle insurance claims in Kentucky.
Minimum Coverage
According to Kentucky no fault law, every motor vehicle insurance company must provide up to a minimum of $10,000 in coverage for certain items of loss that are a result of a motor vehicle accident.
No fault is payable regardless of fault. So, for the first $10,000 of items covered by no fault are “abolished.” In other words, a person cannot recover from the responsible party for the first $10,000 of damages that are covered by no fault.
Is Everyone Entitled to Kentucky No Fault Law?
No! The following classes of people are not entitled to Kentucky no fault law:
- Someone who sustains an injury on a motorized vehicle that is excluded from the Kentucky no fault law’s definition of “motor vehicle.” For example, a tractor. A tractor does not count as a motorized vehicle under Kentucky any fault law.
- Any person who filed a rejection to Kentucky no fault law with the Kentucky Department of Insurance. However, the person is allowed to “buy back” basic benefits if desired.
- A person who sustains an injury in their own car and failed to insure the car at the time of the accident.
- Someone who “converts” a motor vehicle. A converter is someone who uses a motor vehicle without the “good faith” that they are legally entitled to do so. For example, a family member borrowing a car is not a converter, but a loose acquaintance may be.
- Motorcyclists or their passengers, unless optional coverage has been purchased.
- Finally, a person who is excluded from the policy. The “Named Driver Exclusion” provides that “the insurer and named insured may agree to exclude any member of the household, not a spouse or dependent from coverage as the operator of an insured vehicle.”
What Items Are Covered by No Fault?
In Kentucky no fault law, “loss” is accrued economic loss consisting only of:
- Medical expenses;
- Wages from work loss; and
- Replacement services loss (for example, housekeeping, child care, etc.).
In the event of death, loss also includes:
- Survivor’s economic loss (i.e. your loved one’s assets), and
- Survivor’s replacement services loss (i.e. survivors’ expenses after the loss of a loved one).
The word “accrued” is important. It implies that loss must already be sustained in order to qualify for payment. So, future losses are generally not payable by no fault, except in the case of death.
When Does an Insurance Company Owe No Fault?
This is a very complicated question. Generally, to receive compensation, the victim of the accident must provide “reasonable proof of the fact and amount of loss realized.” However, an insurance company can deny your claim for any numbers of reasons.
Hiring an experienced lawyer is crucial in the case of an accident, especially when navigating claims.
Get Help With Your Claim
Motor vehicle accidents claims are complicated. Getting a help from our lawyers at Harville Law can help you navigate even the toughest of cases.
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