Nearly every state requires every driver within its borders to carry an auto insurance policy, and Kentucky is no exception. But, before Kentuckians set out to purchase a policy, they need to understand the state-set mandatory levels of coverage and the specifics of those types of coverage.
Residents looking for a Kentucky car insurance policy will, like motorists in most other states, be required to purchase coverage for bodily injury liability and property damage liability. These types of insurance do not cover the damages the policyholder incurs in an accident; rather, they cover claims filed by other drivers whose selves or property have been damaged in an accident caused by the policyholder. For liability coverage, a Kentuckian is required to have a policy that will cover at least up to $25,000 for bodily injury to one person, $50,000 for bodily injury per accident and $10,000 for property damage.
But Kentuckians also must purchase another type of coverage that is not required in all states. Since the Bluegrass State remains one of the 12 that have a no-fault auto insurance law, state law requires motorists to also get at least up to $10,000 in Personal Injury Protection (PIP) coverage. Unlike liability coverage, PIP — also known as no-fault coverage — is most often used to pay for damages incurred by the policyholder. This coverage “provides prompt payment of medical expenses, lost wages up to $200 per week, replacement services and survivor’s benefits due to bodily injury arising out of a motor vehicle accident.”
An important detail to consider when purchasing PIP coverage is that doing so limits the policyholder’s right to sue the at-fault party for damages. That means, when PIP coverage is part of a policy, the policyholder can sue for pain and suffering damages — as well as expenses not included under PIP coverage — only in the event that his or her injury “involves a broken bone, permanent disfigurement, medical expenses over $1,000, permanent injury or death.” Because of the existence of these limitations, though, the state’s department of insurance allows motorists to formally reject the coverage and its limitations.
Although a motorist may want to reject this type of insurance in order to retain the right to sue without limitations, he or she should first consider the benefits afforded by this type of coverage. Drivers who do purchase PIP and become involved in an accident may be spared of having to wait until fault is determined to get coverage to apply, and, according to the state’s department of insurance, the purchase of PIP may result in lower overall premium prices.
To learn more about Kentucky coverage matters, consumers can go to http://www.onlineautoinsurance.com/kentucky/ where visitors will also be able to use the fee quote-comparison generator to see how much policies with different levels of coverage could cost.