Kentucky PIP Insurance: What It Covers and How to Use It

What PIP Covers in Kentucky

Kentucky’s KRS 304.39-040 sets out exactly what Basic Reparations Benefits must cover. PIP is not just for medical bills, it covers a defined range of losses tied directly to the crash:

• Medical expenses, hospital, surgery, ER, rehabilitation, chiropractic, prescriptions, and other “strong” treatment charges (the statute uses this word directly)
• Lost wages, up to $200 per week, or 85% of your gross weekly income if that amount is less, for income lost because of crash-related injury or disability
• Replacement services, costs of tasks you can no longer do yourself, such as childcare, household work, or yard maintenance, up to $200 per week
• Survivor benefits, if the crash is fatal, PIP covers work loss and replacement services for dependents
• Funeral and burial expenses, up to $1,000

The $10,000 BRB limit applies per person, per accident. If your medical bills and wage losses exceed $10,000, PIP is exhausted, but other recovery options remain available through the at-fault driver’s liability coverage and your own underinsured motorist coverage.

Kentucky’s Choice No-Fault System, KRS 304.39-060

Most states force everyone into no-fault. Kentucky takes a different approach. Under KRS 304.39-060, you have two options when you buy a policy:

Option 1: Keep PIP (Most Drivers)

You carry the mandatory $10,000 PIP, and your own insurer pays first. In exchange, you give up the right to sue the at-fault driver for pain and suffering unless your injuries meet the tort threshold. Most drivers stay on this track and never even know they have a threshold to clear, until they try to make a claim.

Option 2: Reject PIP (Tort Election)

You can file a written rejection with the Kentucky Department of Insurance to opt out of PIP entirely. This preserves full tort rights from dollar one, no threshold to meet. But you lose access to PIP benefits and you are responsible for a “guest PIP” fee on your policy (typically under $100) that covers passengers injured in your vehicle.

Who Files the PIP Claim, and Where

Where you file a PIP claim depends on your role in the crash. KRS 304.39-020 and the MVRA set up a priority system:

1. You were driving your own insured vehicle

   File under your own policy. Your insurer pays BRBs up to $10,000 regardless of fault.

2. You were in someone else’s insured vehicle

   File under the vehicle owner’s policy first. If that policy is exhausted or uninsured, your own policy provides coverage.

3. You were a passenger in an uninsured vehicle

   Your own PIP applies. If you have no coverage either, a claim may go through the Kentucky Assigned Claims Plan, administered by the DOI.

4. You were a pedestrian or cyclist hit by a vehicle

   Claims run through the at-fault driver’s PIP first, then your own. If neither exists, the Assigned Claims Plan is the last resort. Learn more about uninsured motorist coverage as a backup layer.

Additional Reparations Benefits (ARBs): Buying More Coverage

The $10,000 mandatory minimum is often not enough for serious injuries. Kentucky law allows you to purchase Additional Reparations Benefits (ARBs) from your insurer in $10,000 increments, many carriers offer limits up to $100,000 or more. ARBs provide the same categories of coverage as BRBs but with higher caps. They stack on top of your basic PIP and are typically priced comparably to uninsured motorist coverage.

If you have a higher income or significant medical expenses, ARBs are worth the premium. At minimum coverage, a week in the hospital can exhaust your PIP before discharge.

What PIP Does NOT Cover

PIP is designed for immediate expenses only. It does not cover everything. Key exclusions:

• Pain and suffering, PIP covers economic losses only; non-economic damages require a tort claim
• Property damage, vehicle repairs are handled through the at-fault driver’s liability coverage or your collision coverage
• Future medical costs, PIP only pays bills as they come in, up to the limit
• Significant lost earning capacity, the $200/week wage cap is far below most people’s actual income
• Motorcycles, PIP is not automatically included in motorcycle policies; it must be purchased separately
• Work-related crashes, if the crash happened during the course of employment, workers’ compensation is primary
• Uninsured drivers, if you were driving without insurance, you forfeit PIP benefits

This is why PIP is a floor, not a ceiling. After a serious crash, the real recovery comes from the at-fault driver’s liability policy. See how insurance claims work after a Kentucky car accident.

How to File a PIP Claim in Kentucky

PIP is not automatic. You have to file a claim and submit proof of loss to your insurer. Under KRS 304.39-220, once your insurer receives proper documentation, it has 30 days to pay or deny the claim. Here’s the process:

1. Notify your insurer promptly

   Call your insurance company as soon as possible after the crash. Most policies require timely notice as a condition of coverage.

2. Complete the PIP application

   Your insurer will send a PIP application, fill it out completely. Include your name, policy number, date of crash, medical providers, and employer information for wage loss claims.

3. Submit proof of loss

   Attach medical bills, treatment records, and wage verification from your employer. The 30-day payment clock starts when the insurer has what it needs.

4. Direct payments if needed

   Kentucky law lets you instruct your insurer to pay PIP benefits directly to you rather than to the medical provider, useful if you are negotiating bills or managing your benefits. Put any such direction in writing.

When Insurers Delay or Deny PIP, Your Rights

Insurance companies sometimes delay or refuse PIP payments without a valid basis. Kentucky law gives you real teeth to push back. Under KRS 304.39-220:

• If the insurer fails to pay within 30 days of receiving proof of loss, overdue benefits accrue 12% annual interest
• If the denial is found to be without “strong foundation,” the interest rate jumps to 18% per year
• You can also recover your attorney’s fees if you win a PIP dispute

Insurers also cannot unilaterally require you to submit to an Independent Medical Examination (IME) as a precondition for payment. Under Kentucky’s Motor Vehicle Reparations Act, an insurer must petition a court for permission before ordering an IME, it cannot be used as a delay tactic. The Kentucky Department of Insurance investigates complaints about improper PIP delays under 806 KAR 12:095. If you believe your insurer is acting in bad faith, learn about bad faith insurance claims in Kentucky.

PIP and the Full Tort Claim: How They Work Together

PIP and a tort claim against the at-fault driver are not mutually exclusive, they run on parallel tracks. Here’s how they typically connect after a serious crash:

PIP pays first, covering immediate medical bills and lost wages as you recover. If your injuries are serious enough to clear the KRS 304.39-060 tort threshold, and most significant crashes do, you simultaneously build a claim against the at-fault driver’s liability insurer for all damages PIP doesn’t cover: pain and suffering, full lost income, future medical costs, and long-term disability losses.

If the at-fault driver was uninsured or underinsured, your own uninsured/underinsured motorist coverage fills the gap. PIP and UM/UIM coverage can stack, you don’t have to choose one or the other. Read more about how PIP benefits work in detail under Kentucky’s MVRA.

If your insurer is fighting you on a PIP claim while you are also pursuing a third-party claim against the at-fault driver, that’s a situation Sam Aguiar Injury Lawyers handles directly. We manage both tracks, the insurance claim and the personal injury case, so nothing falls through.

Time Limits for PIP Claims, KRS 304.39-220

PIP claims have their own statute of limitations, separate from the tort claim deadline. Under KRS 304.39-220, you must submit your PIP claim within two years of the accident date. If you miss this window, your insurer can deny the claim entirely. Don’t wait, medical records and wage documentation are harder to collect months after the crash.

For the underlying tort claim against the at-fault driver, the standard two-year personal injury statute applies, measured from the crash date or the date of the last PIP payment, whichever is later.