You are driving in a friend's car when another motorist runs a red light, causing an accident. You are injured and transported to the hospital. As the hospital staff checks you in at the registration desk, they ask for the car insurance information for the car in which you were a passenger. You explain the accident was not your friend's fault and are confused why the hospital would want his car insurance information and not that of the other driver. After all, the accident was not your friend's fault. In 1975, Kentucky enacted the Kentucky Motor Vehicle Reparations Act. This law is often referred to as the No-Fault law. The law requires basic Personal Injury Protection (PIP) coverage to be paid by the car insurance company in which an injured person was driving or was a passenger at the time of an accident. The law also requires a vehicle to have such coverage should they hit a pedestrian. Most significantly, the coverage exists regardless of who caused the accident or who was at fault. The basic amount of coverage a person must purchase for their vehicle is $10,000 per person. This amount is for the injured person's medical bills, lost wages (up to $200/week), and other out of pocket expenses. A driver can purchase additional PIP benefits over the $10,000 minimum should they choose to do so. Further, a driver can reject No-Fault coverage, but it requires a special form be filed with the Department of Insurance and is very rare. After the accident, a passenger can request an Application for PIP benefits from the owner's insurance company. You and your attorney will work closely with that insurance company to be sure your bills get paid.
CATEGORIES: Insurance Law