Understanding Kentucky’s No-Fault Auto Insurance System and Its Tort Threshold

Car accidents can bring unexpected medical bills, missed work, and stress. Kentucky is one of a handful of states with a no-fault auto insurance system, which means that after most accidents, your own insurance pays for medical expenses and certain financial losses, regardless of who was at fault. This system is designed to streamline claims and reduce minor lawsuits; however, it also comes with limitations. At Todd & Todd, we help clients understand how no-fault coverage works, what the tort threshold means, and when legal action becomes possible.

How No-Fault Coverage Works in Kentucky

Under Kentucky’s no-fault laws, every driver is required to carry Personal Injury Protection (PIP), also known as basic repair benefits, as part of their auto insurance policy. PIP typically provides up to $10,000 per person, per accident for medical expenses, lost wages, and essential services. These benefits are paid by your own insurer, no matter who caused the crash.

Note: Motorcycles are generally not required to carry PIP coverage in Kentucky; however, riders can purchase it as an optional coverage.

While this coverage provides quick access to treatment and wage replacement, it also limits the ability to file lawsuits for minor injuries. Instead of going to court, individuals rely on their PIP benefits first. Working with a car accident attorney in Kentucky helps ensure that claims are handled correctly and that insurers do not delay or underpay benefits. If you have been injured, please contact us to discuss your situation and learn how our firm can help protect your rights from the outset.

The Tort Threshold Explained

Kentucky’s no-fault system has a built-in requirement, often referred to as the tort liability threshold, that determines when accident victims may opt out of the no-fault system and sue the at-fault driver. Under KRS 304.39-060, you may pursue a liability claim if:

• Your medical expenses exceed $1,000, or
• You suffer a broken bone, permanent disfigurement, permanent injury, or death, as outlined in KRS 304.39-060(2)(a).

This rule prevents minor claims from overwhelming the courts, while ensuring that serious injuries can be addressed through traditional legal action. Because “permanent injury” can be complex to prove, having a car accident lawyer in Kentucky evaluate your case helps determine whether you meet the criteria to file a lawsuit.

The Right to Reject No-Fault

Kentucky is sometimes referred to as a “choice no-fault” state because drivers may opt out of the no-fault system in writing when they purchase their auto insurance policy. By doing so, they retain the right to sue another driver after any accident, regardless of the severity of the injury. However, rejecting no-fault also means losing certain protections, such as immunity from being sued for minor injuries.

This choice can significantly affect how claims are handled after a crash. If you are unsure whether your policy includes or excludes no-fault coverage, our attorneys at Todd & Todd can review your coverage and explain your options. Working with a car accident attorney in Lexington ensures you fully understand your rights before making important decisions about your policy or your claim.

Common Disputes Under the No-Fault System

Even with PIP coverage, disputes often arise. Some common challenges include:

• Insurers dispute the necessity of medical treatments.
• Delays in wage replacement benefits.
• Disagreements over whether injuries meet the tort threshold.
• Confusion about policy limits or rejections of no-fault coverage.

When these issues occur, individuals may feel stuck between insurance companies and mounting expenses. At Todd & Todd, we intervene to hold insurers accountable and ensure clients receive the benefits and compensation they are entitled to. Our results page highlights the difference that timely legal action can make in auto accident cases.

Why Timing Is Critical

Because PIP claims and tort thresholds involve strict rules and deadlines, acting quickly is essential. Missing deadlines or failing to provide proper documentation can result in the loss of benefits or the inability to pursue damages in court. Prompt legal guidance helps preserve your rights and ensures your claim is handled correctly from the start.

With decades of experience serving individuals in Lexington and across Central Kentucky, our firm takes a hands-on approach to every auto accident case. Having a car accident lawyer in Central Kentucky on your side ensures that you have the knowledge and resources needed to recover both short-term benefits and long-term compensation.

At Todd & Todd, we are committed to protecting the rights of drivers and passengers injured on Kentucky’s roads. If you or a loved one has been involved in a crash, do not wait until it is too late. Contact us today to schedule a consultation and learn how we can help you secure the benefits and compensation you deserve.