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What is PIP coverage and what does it do?

On Behalf of | May 20, 2022 | Motor Vehicle Wrecks

Most all states require drivers to carry liability to cover other parties. However, Kentucky is a no-fault state, which means drivers must file claims on their insurance. This is usually done through the personal injury protection portion of their policy.

Overview of PIP

Personal injury protection covers medical expenses, even if the driver is at fault or lacks health insurance. PIP policies got introduced in the 1970s as a way to make determining who is at fault for motor vehicle wrecks easier. In addition to medical costs, it may cover lost wages, funeral costs, prescriptions, medical supplies, and replacement services, such as cleaning.

Some states require drivers to purchase PIP, including Kentucky, but it also sets a minimum and maximum coverage. Drivers in Kentucky must purchase a minimum of $10,000, which sets the cap at $50,000 and $10,000 per person.

Under Kentucky tort law, drivers are agreeing to forfeit the right to collect the first $10,000 in related damages. Motorcyclists aren’t required to purchase PIP, but they are under the same restrictions as standard drivers. Medical expenses must exceed $1,000 before they can sue an at-fault driver, with some exceptions, such as broken bones.

What PIP does not cover

PIP does not include covering damages to the vehicle from a crash, theft or property damage. To get coverage for theft or other non-driving damages, the driver needs a comprehensive insurance policy.

They need collision coverage to cover the cost of their vehicle when they are at fault. If they have liability, it should include property damage liability to cover property damage, such as fences. It will not cover injuries sustained while fleeing from police or caused when committing a crime.

Pedestrians, cyclists, and passengers may file PIP claims with the at-fault driver’s provider. Drivers and other injured parties may seek damages outside of the no-fault system in certain situations. However, they only have four years to file a PIP claim and two years if they sue at-fault parties.