I am from Lexington-Fayette, Kentucky, and I heard that Kentucky is a no fault state. But what exactly is a no fault insurance?

Max

Lexington-Fayette, KY

Max, you are right. Kentucky is indeed a no fault state. So, this means that auto insurance policies there are a bit different than the standard ones that work in other states. Presently, there are 12 states that are no fault. These states are New Jersey, Hawaii, Kansas, Florida, Minnesota, North Dakota, New York, Pennsylvania, Michigan, Kentucky, Massachusetts and Utah. But there are three states that are under a choice no fault law and where you are right now, Lexington-Fayette, Kentucky, is among them along with New Jersey and Pennsylvania.

What this means is that the motorists have a choice to reject the lawsuit threshold and just retain the right to sue in court for any injuries that are involved in any vehicular accident. What you have to take note of is the nature of the no fault insurance system because no fault auto insurance is in fact misunderstood widely. No fault auto insurance is just a system that makes it compulsory for the drivers to carry insurance for their own protection, but at the same time it limits the capability of the drivers to sue the other parties or drivers for damages. By law, the no fault system makes your auto insurance companies pay for your damages, which have to be within your policy. The company would cover the payments regardless of who was at fault in the accident that the driver has involved himself in. The other drivers who are involved are going to be covered by their own insurance companies.

The good thing about this is that you are guaranteed immediate medical attention, and it also lowers the legal fees. Actually, there is still a lot more to know about this. Just ask around.

Can you explain what a Guest PIP in Kentucky is?

Richie

Louisville, KY

Guest PIP is a type of coverage that must be bought if basic PIP has been rejected by the insured’s listed on an insurance policy. The state of Kentucky is a “choice no-fault” and this means that a driver can choose to insure their car under the tort system or the no fault system.

According to the Kentucky Department of Insurance representative, in Kentucky when you buy auto liability coverage you also buy PIP coverage for you, your family and guest passengers (choose the no-fault system).

Usually, guests are defined as those in your car that are not immediate family members. Normally, additional PIP is not afforded to a policy that includes Guest PIP coverage only.