Most people have one or two main sources of compensation available after a crash. Many people expect insurance to cover their losses. In cases where there isn’t an insurance policy in place or the coverage is inadequate, personal injury litigation might become necessary.
The rules for automotive insurance in Kentucky are somewhat different than those in many other states. In addition to basic liability insurance, there’s also a rule requiring no-fault personal injury protection (PIP) coverage. PIP coverage helps pay for up to $10,000 worth of injury-related expenses, including lost wages, medical bills and verifiable out-of-pocket secondary expenses.
Depending on the insurance carried by the parties involved in a crash, filing a lawsuit for damages can be more challenging than people initially anticipate. What influence does no-fault PIP coverage have on the right to hold another driver or a third party accountable for car crash damages?
No-fault coverage limits litigation
People typically have to exhaust the available insurance coverage to pay for collision expenses before litigation is an option. People who carry PIP coverage may not have losses that exceed the insurance available if they only incur minor injuries.
PIP coverage protects not just the driver who purchases the policy but anyone riding in their vehicle when a collision occurs. PIP coverage also pays for pedestrian injuries after a collision, regardless of who was at fault for the wreck. Those who have PIP coverage typically cannot sue unless their injury-related losses exceed $1,000 or the situation meets other requirements.
The state does allow people to opt out of PIP insurance requirements. When a driver does not carry PIP coverage, they theoretically have the right to file a lawsuit for damages against the motorist at fault for the collision. However, the decision to forgo PIP coverage also opens people up to lawsuits if they are the party at fault for a crash.
People involved in collisions and feeling concerned about covering their expenses often need to review insurance policies carefully to determine what options they have. They may need help reviewing insurance rules and proving the situation warrants litigation.
Discussing the circumstances of a motor vehicle collision and current insurance coverage with a skilled legal team can help people recoup more of their losses related to injuries and significant property damage. People with substantial losses may need help reviewing their options for compensation, calculating their total losses and holding the right parties accountable for their harm.
