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.