HOW PIP INSURANCE WORKS IN KENTUCKYKentucky auto policies carry $10,000 in no-fault PIP benefits that pay medical bills and lost wages after a car accident, no matter who caused it.

On This Page

1

What PIP Covers in Kentucky

2

Kentucky’s Choice No-Fault System

Most Drivers Keep PIPRejecting PIP In WritingKentucky’s Tort Threshold

3

Where to File Your PIP Claim

4

Buying Additional Reparations Benefits

5

What PIP Does NOT Cover

6

How to File a PIP Claim in Kentucky

7

Your Rights When Insurers Delay PIP

Your Medical Bills Are Presumed Valid

8

How PIP Works With a Tort Claim

What PIP Covers in Kentucky

Kentucky’s KRS 304.39-040 sets out exactly what Basic Reparations Benefits must cover. PIP covers a defined range of losses tied directly to the crash:

• Medical expenses, including hospital care, surgery, ER visits, rehabilitation, chiropractic treatment, and prescriptions
• Lost wages of up to $200 per week, or 85% of your gross weekly income if that amount is less
• Replacement services for tasks you can no longer do yourself, such as childcare, household work, or yard maintenance, up to $200 per week
• Survivor benefits that cover work loss and replacement services for dependents when a crash is fatal
• 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

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:

Most Drivers Keep PIP

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.

Rejecting PIP In Writing

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.

Where to File Your PIP Claim

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.

Buying Additional Reparations Benefits

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, and 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 falls outside PIP. Those damages come through a tort claim against the at-fault driver.
• Vehicle repairs run through the at-fault driver’s liability coverage or your own collision coverage.
• Future medical costs are excluded. PIP pays bills as they arrive, up to the limit.
• The $200 weekly wage cap sits far below most paychecks, so larger income losses need a tort claim.
• Motorcycle policies leave PIP out unless you purchase it separately.
• Crashes on the job go through workers’ compensation first.
• Driving without insurance forfeits your PIP benefits.

PIP is only the floor. 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.

★★★★★

“They took care of the medical bills and also had more than enough for a new car and pain and suffering.”

– Paula B.

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, which is useful if you are negotiating bills or managing your benefits. Put any such direction in writing.

Your Rights When Insurers Delay PIP

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 insurer had no valid basis for the denial, 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 needs a judge’s approval before ordering an IME, so the exam 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.

How PIP Works With a Tort Claim

PIP and a tort claim against the at-fault driver 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. Read more about how PIP benefits work in detail under Kentucky’s MVRA.

If your insurer is pushing back 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.