Kentucky is known as a no-fault state because of a legislation that requires each driver in the state to submit a claim with their insurance company first in order to get reimbursement for medical costs and other financial losses incurred as a result of the accident under their own insurance policy.
What does no-fault mean in Kentucky?
Yes, Kentucky is a no-fault state, which means that owners of vehicles and trucks registered in the Commonwealth are required to obtain Personal Injury Protection (PIP) auto coverage, also known as no-fault insurance, under Kentucky’s auto insurance rules. In Kentucky, the Personal Injury Protection (PIP) coverage provides for medical expenses, lost earnings, and out-of-pocket expenditures for persons who are injured in an automobile accident, regardless of who is at fault.
No-fault insurance is designed to keep motor insurance rates low by preventing minor injury claims from going to court. While no-fault insurance is required in Kentucky, it does not preclude all vehicle accident cases.
An injured motorist files a claim under his or her own PIP coverage after a car accident. Passengers who are injured make claims on the coverage for the vehicle they were riding in.
If someone is killed in a car accident, a standard PIP coverage in Kentucky pays up to $10,000 in medical expenses per person, plus lost wages and survivor’s compensation. PIP plans with larger coverage limits are available for purchase.
A vehicle accident victim with a basic PIP policy may find that $10,000 is insufficient to cover all of the costs of a major injury.
How long has Kentucky been a no-fault state?
Kentucky legislators adopted the Motor Vehicle Reparations Act, often known as the No-Fault Law, in 1975 to protect drivers from civil liability and skyrocketing medical costs in the aftermath of an automobile accident.
How does car insurance work in Kentucky?
“No Fault Choice” Kentucky Automobile Insurance In a conventional no-fault jurisdiction, regardless of who was at fault, each driver seeks compensation from their own automobile insurance policy for medical costs and other financial losses incurred as a result of the accident.
How long after a car accident can you sue in Kentucky?
When you or a family member is involved in a car accident caused by someone else, you may question how long you have to file a lawsuit. In legal terminology, a statute of limitations refers to the length of time you have to file a lawsuit. In Kentucky, the statute of limitations for filing a lawsuit after an automobile accident in which someone is wounded or killed is usually:
- If a fatality occurs as a result of an automobile accident, you have one year from the date an administrator is appointed to file a claim.
Should I reject Kentucky no-fault?
Unless No-Fault Insurance is expressly denied in Kentucky, Basic Reparation Benefits (Personal Injury Protection or PIP) are included in the liability package. You do have the option of declining your No-Fault Insurance. This must be communicated to you in writing by your insurance carrier. If you opt to do so, your vehicle accident case will be governed by Kentucky case law rather than the Kentucky No-Fault Statute. This denial must be submitted to the Office of Insurance in writing.
The act also provides for other benefits, such as how medical bills are paid, how to appeal denials of medical payments, and insurance company fines for erroneous denials of these payments. I’m afraid I won’t be able to go into detail about them here. Never, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever, ever
Is Kentucky a PIP state?
Except for motorcycles, all motor vehicles in Kentucky are required to have basic PIP coverage. Basic PIP covers medical bills, lost income, and other “out of pocket” expenditures incurred as a result of an injury up to $10,000 per person per accident.
Is Kentucky a tort state?
Yes, Kentucky is a “option no-fault” state, which means that drivers are obliged to have PIP coverage on their auto policies by default and submit accident claims via their own insurance first, but the Commonwealth does allow drivers to seek to opt out of the no-fault system.
Where is the fault line in Kentucky?
The New Madrid Seismic Zone (NMSZ) is an area of deep-seated faults in the Earth’s crust that zigzag southwest-northeast through Arkansas, Missouri, Tennessee, and Kentucky in the United States. The seismic zone is about 45 miles (70 kilometers) broad and 125 miles (200 kilometers) long, and it is located in the center part of the North American Plate. Thick layers of rock hide the fissures, which are then covered by deep, unstable alluvial material from the Mississippi, Missouri, and Ohio rivers.
Why is Kentucky car insurance so expensive?
Kentucky car insurance is expensive because the state has more road fatalities than the national average, with 1.36 deaths per 100 million miles driven (compared to the national average of 1.1). In Kentucky, full coverage vehicle insurance costs around $1,988 per year, while minimal coverage costs around $983 per year. Kentucky car insurance is more expensive than the national average, which is roughly $1,500 for full coverage and around $600 for basic coverage per year.
Car insurance premiums are also continuously rising in Kentucky and around the country. As the cost of providing insurance rises, so do the premiums charged by insurers. The rising cost of insurance affects all insured drivers. That’s why, regardless of whether any individual factorslike your driving record or locationhave changed, your premiums tend to go up every time your policy is renewed.
Even if your information remain the same, there are various distinct reasons why vehicle insurance in Kentucky increases every year.
Top Reasons Car Insurance Is Expensive in Kentucky
As a result, the number of accidents, claims, and settlements is on the rise. There were roughly 721 fatal crashes in Kentucky in 2018, compared to 672 fatal crashes in 2014.
Another cause for rising Kentucky auto insurance costs is that autos are becoming more costly to fix. Kentucky’s average car repair cost was $838.89 in 2016, up from $759.70 in 2012. Due to all of the technology and amenities in today’s vehicles, they are more expensive to fix.
More drivers are taking the risk of driving without car insurance as the cost of automobile insurance continues to grow. In Kentucky, 12 percent of drivers lacked even the bare minimum of liability insurance in 2015. Uninsured drivers’ costs are passed on to consumers in the form of increased rates.
When it comes to paying out claims involving medical expenditures, car insurance companies are struck the hardest, and it’s not getting any cheaper. Every year, healthcare spending in Kentucky rises by 6.2 percent on average.
Severe weather events such as winter storms, severe storms, and heat waves are becoming more common in Kentucky. Insurers pay out a higher number of claims as a result of these weather occurrences, which are more expensive and unpredictable. As a result, they must boost interest rates to stay up.
If your driving record is spotless yet your premiums remain high, it’s possible that your vehicle insurance is too expensive because of:
Age. Because drivers under the age of 25 and those over the age of 65 are statistically more likely to be involved in major and fatal accidents, they pay more for vehicle insurance. In Kentucky, 16-year-old drivers pay $10,120 on average, 25-year-old drivers pay $2,027 on average, and persons over 65 pay $1,561.
Driving habits and location. Cities with a high population density have higher premiums than rural locations since city life usually entails more accidents, property crime, and claims. Pikeville, Salyersville, and Prestonburg are the most expensive places to insure in Kentucky. You can also expect rates to fluctuate depending on your driving habitslong commutes or frequent driving in high-risk locations might increase your premiums.
Financial accountability In Kentucky, drivers with no credit pay 52 percent more for insurance than those with good credit. Maintaining basic auto insurance with no gaps in coverage can also reflect financial prudence. When you purchase your next policy in Kentucky, letting your coverage lapse could hike your cost by as much as 11 percent.
Histories of claims Small claims should be avoided because they can raise your premiums. In Kentucky, the typical collision claim increases a driver’s insurance rates by $1,247.60, or $3,743 over three years. With a $500 deductible and a $1,500 claim, you’ll pay $4,243 through insurance instead of $1,500 out of pocket. Filing a claim isn’t the greatest option in that situation.
How to Get Cheaper Car Insurance in Kentucky
The cost of car insurance is influenced by a number of things. You have no control over certain things, but you do have a say in the majority of the contributing elements. The greatest ways to keep your insurance prices low are to drive cautiously, obey traffic regulations, and maintain a clean driving record.
Aside from that, comparing quotes from at least three insurance providers is the greatest approach to save money on vehicle insurance. When you renew your coverage, you should check your rates every 6-12 months. But, at the absolute least, check your record and shop for rates every three to five years, because if a traffic violation is removed from your record, you may be able to receive a lower premium.
When all driver profile information is the same in Kentucky, the most expensive policies cost around $2,894 and the least expensive coverage costs around $880. That means you may save up to $2,014 just by doing some comparison shopping. Also, double-check that you’re getting all of the discounts you’re entitled to.
Does insurance follow the car or the driver in Kentucky?
In Kentucky, car insurance frequently follows the vehicle. Collision, comprehensive, uninsured motorist protection, and property damage liability are the forms of automobile insurance that follow the car in Kentucky. In Kentucky, you must have property damage liability, personal injury protection, and uninsured motorist coverage. Unlike liability and uninsured motorist coverage, PIP accompanies the driver.
Bodily injury liability insurance pays for injuries to the other driver and their passengers if you let someone borrow your car and they cause an accident in Kentucky. Damage to the other driver’s vehicle is covered by property damage liability insurance. If the person who borrowed your automobile suffers damage that exceeds your coverage limitations, their liability policy may be used as backup protection. However, their coverage begins only when yours has been exhausted.
If someone causes an accident while driving your car, you won’t need to use your PIP or MedPay coverage because PIP and MedPay follow the driver. However, if your automobile is damaged, you’ll have to pay for it using your collision and comprehensive insurance. These extra coverage categories cover the cost of repairing your car regardless of who was driving, but it is a claim on your insurance.
Lending your automobile to someone else is always a risk, because you could end up submitting a claim on your own insurance in Kentucky. In most circumstances, when someone borrows your automobile, they also borrow your insurance coverage.