What does it mean that Kentucky is a no fault car insurance state?

What is no fault car insurance?

If you live in the state of Kentucky and have auto insurance or are looking for car insurance in Kentucky, it is worthwhile to be aware of the no-fault auto insurance policy type. 

There are several types of auto insurance coverage and drivers should be aware of what each means for them, including no-fault car insurance. In the state of Kentucky, where the Holly McMillin insurance group is located, this type of coverage helps pay for loss and damage regardless of who is at fault in the event of an accident. 

The biggest difference between no-fault auto insurance and other types of auto insurance is who caused the accident and who is responsible for damages. 

Kentucky No Fault Car InsuranceNot all states require that drivers obtain no fault auto insurance. The state of Kentucky gives drivers the option to opt-in or out for this type of insurance coverage. If the driver chooses to opt-out, however, they are at risk of getting sued for accident damages.

Another name for no-fault auto insurance is Personal Injury Protection insurance (PIP). No-fault Insurance or PIP covers up to $10,000 in medical expenses in the event of an accident, regardless of who caused it. These reimbursements cover not only the driver, but also passengers in the vehicle at the time of the accident. In addition, if a pedestrian is hit by the insured vehicle, they may be eligible to receive PIP benefits as well.

What does no-fault auto insurance cover?

  • Medical bills and expenses
  • Health insurance deductibles
  • Loss of income if the driver and/or passengers are unable to work due to injury
  • Funeral expenses

Unlike liability coverage, which helps with damages dependent on who is at fault, no-fault auto insurance pays for medical bills and expenses, loss of income resulting in an inability to work, and other related expenses, such as funeral costs. No-fault auto insurance does not cover losses from theft. 

How does no-fault coverage work in the state of Kentucky?

In most states, when an accident occurs, it must first be determined who is at fault. The driver at fault’s insurance company is then responsible for damage compensation. The state of Kentucky does not adhere to this rule. In most situations in Kentucky, whoever is liable for the accident isn’t necessarily relevant. 

If you choose to opt in for no-fault coverage in your personalized insurance plan, you will be eligible to receive up to $10,000 in compensation for losses sustained in the accident, even if you are at fault. In addition, you can personalize your no-fault insurance plan to include accident compensation for not only you the driver, but your passengers or pedestrians injured as well. 

How to get great auto insurance in the state of Kentucky

When you create a car insurance plan in the state of Kentucky, you have the option to choose no-fault coverage as a part of your plan.

If you choose not to have this coverage on your insurance, you’re still able to pursue liability claims and personal injury lawsuits against the driver at-fault in the accident. 

In the state of Kentucky, it is required by law that every driver must hold auto insurance. If the driver does not hold auto insurance, the vehicle registration can be revoked, the driver is subject to up to $1,000 in fines and possible jail time of up to 90 days. Furthermore, if you own and operate a motor vehicle, you must have minimum liability coverage on your auto insurance plan to cover bodily injury damages. If you have recently moved to the state of Kentucky, you must apply for vehicle registration within fifteen days of your residency and be able to show proof of insurance.

At Holly McMillin Insurance Group, our team works with drivers in Kentucky, Florida and Virginia to customize the right car insurance plan for every individual in the event of something unexpected. Your insurance representative will discuss risks and factors with you when creating the best plan for your or other drivers in your household. 

Contact our office to create a customized plan and see if no-fault coverage could be a beneficial part of your Kentucky auto insurance policy.

What does liability on your auto insurance pay for?

We regularly answer the question of what liability on auto insurance pays for. Our auto insurance clients in Kentucky, Florida, Virginia and other states where we are licensed insurance agents are often unclear about this very common inclusion in their custom insurance package. Furthermore, insurance laws and limits vary from state to state so it’s important to learn what your state’s auto insurance laws are.

Before we dive into this question, it may help to first cover the basics of auto insurance. Auto insurance is a contract between the driver, also known as the insurance policyholder, and the insurance company. 

happy family covered by auto insurance liability

This contract gives financial protection to the policyholder in the event of damage, theft, or injury. The policyholder is responsible for paying the premium – which is the amount the insurance company charges for the insurance plan. If the policyholder gets into an auto accident and needs to access the insurance coverage, the insurance company will cover all financial losses according to the policy contract.

Exact auto insurance coverage amounts are best quoted in a conversation with your insurance agent. At Holly McMillin Insurance, we always want to make sure you are very clear about the specifics of your automobile insurance.

Why do I need auto insurance?

It is a law in most states that licensed drivers must hold auto insurance. This is why a new driver obtaining their driver’s license must bring proof of insurance to their DMV visit. Additionally, if a driver gets pulled over and is unable to produce proof of insurance, there can be hefty fines, loss of license and even jail time as a consequence. These penalties are usually determined on a state-by-state basis.

Trust us, you want the right insurance for your vehicle, and here’s why. 

If there is an accident, injury, or damage to the vehicle, auto insurance will aid in covering those losses. Auto insurance can also help pay for legal fees in the event of the driver’s appearance in court. Auto liability coverage is almost always legally required for licensed drivers as well because it extends this coverage to accident injuries, medical expenses and vehicle damage that are the fault of the driver/policyholder.

What is auto liability coverage?

Liability on auto insurance pays for property damage and medical expenses caused by an accident in which the driver is at fault. There are two types of liability coverage: Bodily injury and property damage. 

Bodily injury liability covers expenses of injuries to the driver or passengers in another vehicle caused by the driver of the vehicle at fault. If you were to get into an accident involving other vehicles, and the accident is deemed your fault, you will absolutely need to have bodily injury liability to cover sky high medical expenses. If there are bodily injuries involved in the accident, liability coverage can pay for medical bills, prescriptions, and lost wages of the other injured party.

Similarly, property damage liability reimburses for damages caused by the driver such as hitting a pole, fence, or other vehicle. This coverage could mean supplying a rental car to the other person involved in the accident as an example. Many states allow limits on property damage coverage, so if you’re looking for auto insurance in Virginia, Florida or Kentucky, you will want too speak with a licensed insurance agent to determine what’s best for you.

Why do I need liability coverage? 

Liability coverage protects you and your family from accident expenses, either small or very high. This means that if you, the driver, are responsible for damages to another party or property, you are protected from paying all or close to all of the damages, depending on your particular policy. Liability coverage on your auto insurance can be tailored to your driving needs. Holly McMillin Insurance Group works with clients in Virginia, Florida and Kentucky to recommend and create a plan.

How do I get the best auto insurance for my needs?

Holly McMillin Insurance Group strives to protect families from everyday risks, including risks associated with operating a vehicle. Holly and her team work with individuals and families to understand exactly what they need and create customized auto insurance policies. 

Holly McMillin is currently serving families in Kentucky, Virginia, and Florida and has more than 25 insurance carriers to customize the perfect plan for you. If you’re interested in receiving a quote or further information, appointments are available in person, online, over the phone, or through text messaging. This includes an initial phone call or meeting, personalized assessment, quote with proposal options, and a client welcome. Holly and her team are passionate about helping individuals and families find the right auto insurance to cover all risks associated with operating a vehicle.

To contact Holly McMillin for an auto insurance quote, simply send us a few details here.