WHAT IS PIP?
If you’ve been injured in a car accident in Louisville, you have probably heard the term PIP or No-Fault Insurance. You might have even be anxious that “no-fault” means you can’t sue the person who hit you. We’re here to clear up the biggest myths of Kentucky personal injury law to help you.
In Kentucky, Personal Injury Protection or PIP is designed to ensure you get immediate medical care and financial relief without waiting months for insurance companies to argue over who caused the crash.
Kentucky is one of twelve states that operate under a “choice no-fault” insurance system. By law, every standard auto insurance policy issued in the Commonwealth automatically includes $10,000 in PIP coverage unless you explicitly opt out in writing when buying the policy.
“No-fault” only means that your own auto insurance provider pays for your immediate, out-of-pocket losses up to that $10,000 limit, regardless of who caused the collision. Whether you were rear-ended on I-65 or slipped on the slick pavement of Broadway, PIP coverage kicks in first.
WHAT DOES KENTUCKY PIP COVER?
PIP is restricted to cover economic damages that result directly from the accident. These can include the following:
- Medical Bills: Doctor visits, emergency room treatment, ambulance rides, X-rays, physical therapy, and prescription medications.
- Lost Wages: Standard PIP coverage will reimburse up to 85% of your lost income capped at a maximum of $200 per week.
- Replacement Services: If injuries stop you from performing house hold tasks such as cleaning, child card, or lawn care, PIP pays up to $200 weekly for hiring services.
- Rental Car: PIP can cover the costs of a temporary rental car in the event your vehicle is undrivable after the accident.
- Funeral Expenses: In the worst case scenario, PIP provides $1,000 for funeral costs after fatal accidents.
HOW TO USE PIP
Navigating the aftermath of a crash is overwhelming. If you are injured in a car accident then your first step is immediate treatment. Go to an Emergency Room, an urgent care clinic, or your primary care provider as soon as possible. Tell the medical staff that you were hurt in a motor vehicle accident.
When able, contact your auto insurance company to report the accident. The company will assign you a claims adjuster who handles the process on their end. If the other driver’s insurance company contacts you do not give them a statement about your injuries without talking to a lawyer first. They are recording you and will attempt to use any accidental admissions they can get to lower your payout.
Your auto insurance company will also provide you with a PIP Claim Number. When your medical care begins to discuss payment you will provide them with this PIP Claim Number, your insurance company’s name, and billing address. Each and every medical care provider you visit in relation to the accident should be given this number. That way the doctors and hospitals will bill your auto insurer and use that $10,000 before your health insurance.
PIP AND THE TORT THRESHOLD
Kentucky’s “no-fault” framework has a minor catch. In exchange for $10,000 in quick medical coverage, at-fault drivers are shielded from minor lawsuits. To get around the no-fault injury system and file a personal injury claim against the at-fault driver for pain and suffering, you must cross one of two tort thresholds.
- You have accumulated more than $1,000 in reasonable medical expenses.
- The accident caused a fractured bone, permanent disfigurement, permanent injury, or death.
Given the high price of modern medical care, exceeding $1,000 is not a large hurdle for auto accidents. A lone emergency room visit or ride in the ambulance typically exceeds this amount satisfying the Kentucky requirement. Once this tort threshold is met you are permitted to legally pursue the at-fault party for your full damages.
WHAT HAPPENS WHEN THE $10K RUNS OUT?
Once your bills hit that $10,000 limit, your auto insurance provider will send you a “PIP Exhaustion” letter. This is where your private health insurance, Medicaid, or Medicare takes over to cover the rest of your medical treatment. Car insurance companies do offer added PIP coverage up to $20,000 or even $40,000 for a small extra charge per month.
If the accident wasn’t your fault then any bills exceeding your PIP coverage will form the core of your personal injury claim or lawsuit filed against the negligent driver’s liability insurance policy. Continued pain and suffering, emotional distress, and long-term lost wages can also be added to these claims.
Insurance corporations are often seeking to minimize their payouts to protect their profits. You do not have to accept any less than your case is worth. Don’t fight for your payout alone. Your case gets handled with care and focus at Kemper Law Office. Your accident will never become just another number in a file to us. From routing your initial PIP claims to protecting your right to seek full medical damages, we are here for you.
If you need an experienced advocate licensed in both Kentucky and Indiana who will put your recovery first, call us at 502-771-0588. Reach out to our Old Louisville office today for a free and confidential evaluation of your next steps.