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What does it mean to live in a no-fault state?

On Behalf of | Dec 17, 2021 | Divorce

For automobile collisions, you need to know if you live in a fault or no-fault state. Kentucky falls into the no-fault category, which means that each driver’s personal injury protection coverage, or PIP, pays out to them after a crash regardless of fault. The insurance should cover lost wages and medical costs regardless of who’s to blame.

That doesn’t mean that no one will be found responsible for the crash. Drivers still need to carry liability insurance to cover damages that are caused when they cause a crash.

The difference between fault and no-fault states lies in medical care coverage

The real difference between the two kinds of states comes down to PIP coverage. PIP insurance covers lost wages and medical expenses no matter who caused the accident. So, even if the other driver caused the crash, your own insurance would cover your lost wages and medical care.

Kentucky is among 12 states that have this type of insurance. For this reason, you may have higher insurance premiums than in other states, which is something to watch out for.

Why do states have no-fault insurance coverage?                 

The primary reason that states have no-fault insurance coverage is that this kind of coverage can save both time and money. Since people have their lost wages and medical care covered regardless of fault, there is also a reduced risk of lawsuits.

That being said, there are still times when people can start lawsuits over a collision. Those situations are limited, and they usually only involve cases that breach a specific monetary threshold and that involve serious injuries.

What do you need to do after you’re involved in an accident in Kentucky?

If you are involved in a collision, the first step is to get the medical care you need. After that, you can consider starting the claims process, so that your PIP insurance will kick in. You may want to look into your legal options if you believe that your PIP coverage limit will be reached or if your injuries are serious enough to warrant seeking compensation from the other party. If your case qualifies, you may be able to seek further damages.