Your paycheck may stop if an injury keeps you from working. Until now, Kentucky’s $200 weekly Personal Injury Protection (PIP) benefit often covered only a small part of your lost income. Starting July 15, 2026, the combined weekly limit for lost wages and replacement services increases to $500. The new benefit applies only to auto insurance policies issued or renewed on or after July 15, 2026. If your current policy has not renewed yet, the previous benefit limits may still apply until your next renewal.
Many drivers have questions about these changes. Hicks & Funfsinn helps people learn how Kentucky’s updated PIP law may affect accident claims and insurance coverage. Here is what you should know.
What changed under Kentucky’s new PIP law?
House Bill 627 updates parts of Kentucky’s no fault insurance law. This law helps pay for medical care and certain financial losses after a car accident, no matter who caused the crash. Several changes could affect the benefits available under qualifying policies.
- Higher weekly benefits: The weekly limit for lost wages and replacement services increases from $200 to $500. This increase may provide more financial help if you cannot work or need someone to help with daily household tasks while you recover.
- Higher funeral benefits: The maximum funeral benefit increases from $1,000 to $5,000. This amount comes closer to covering today’s funeral and burial costs.
- New payment rules for medical bills: Insurance companies now use the Kentucky Workers’ Compensation fee schedule when paying many PIP medical bills instead of the amount a medical provider charges.
- New billing deadline: Health care providers generally have 180 days to send medical bills to the insurance company. This rule may help claims move through the process more smoothly.
The higher weekly benefit comes from Kentucky’s no fault insurance law, which insurers generally use when handling qualifying PIP claims.
What stayed the same under the new law?
Although House Bill 627 increases several benefits, the Basic PIP limit stays the same at $10,000 per person for each accident.
That $10,000 covers medical bills, lost wages, replacement services and funeral expenses. A serious injury could still use up those benefits quickly. Since the overall limit did not change, some drivers may want to look at optional added reparation benefits for extra protection.
How does the $500 weekly cap work?
An example may help explain how the new limit works.
Suppose you earn $900 each week and your doctor tells you to stay home from work for four weeks after a car accident. Under the old $200 weekly limit, your Basic PIP wage loss benefit would have totaled $800. Under the new $500 weekly limit, you could receive up to $2,000 for that same four week period if your policy qualifies and you meet the coverage requirements.
The new limit may not replace your full paycheck, but it could cover more of your lost income while you recover.
What should you do before your policy renews?
The higher weekly benefit applies only to policies issued or renewed on or after July 15, 2026. Your policy’s renewal date could determine when these changes become available. You may want to:
- Contact your insurance agent to confirm your policy’s renewal date.
- Ask if your policy can be replaced or rewritten with an effective date on or after July 15, 2026.
- Request written confirmation of any policy changes.
- Make sure your current coverages stay in place during the change.
- Confirm that the update will not create a gap in your coverage.
These steps may help you learn when the new PIP benefits could apply to your policy.
Should you consider added reparation benefits?
The Basic PIP limit remains $10,000, so you may also want to consider Added Reparation Benefits, often called Added PIP.
Added PIP increases the total amount of coverage available under your policy. For example, adding $40,000 to your $10,000 Basic PIP would give you up to $50,000 in available benefits. Those extra funds may help pay for medical bills, lost income and household help if your recovery takes longer than expected.
You may also hear the term “stacking.” In simple terms, stacking may allow coverage from more than one policy or vehicle to work together in some situations. The rules depend on your policy and Kentucky law, so stacking may not apply to every claim. Your insurance company may be able to explain how it works for your coverage.
Take time to review your coverage
Kentucky’s updated PIP law increases weekly benefits for lost wages and replacement services while also raising funeral benefits for qualifying policies. These changes may provide more financial support after a serious accident if your policy takes effect on or after July 15, 2026.
Looking over your policy before your next renewal may help you see whether the new benefits apply to your coverage. If you have questions about your benefits or an injury claim, a Kentucky personal injury attorney can explain how the law may apply to your situation and discuss your legal options.
