Kentucky Car Accident Compensation Laws

Kentucky has unusually complicated car accident insurance laws. Drivers can opt out of the no-fault system and depend on lawsuits to pay their bills in the event of an accident. But, the window for filing legal claims is narrow after a crash.

If you plan to file a car accident claim in Kentucky, you need a personal injury attorney and an overview of Kentucky car accident laws.

Kentucky Car Accident Laws

Kentucky uses a no-fault insurance system. After a vehicle accident, drivers file claims with their own insurance carriers. Drivers must have personal injury protection insurance (PIP). An accident victim can only file a personal injury claim against the other driver if:

• They exhaust their PIP coverage
• The medical treatment costs are over $1,000 or
• They suffered "serious injuries," defined as permanent disfigurement, broken bones, or other permanent injury

Today's medical costs mean that most accidents will meet the first threshold once you use up your PIP coverage. Your minimum required insurance coverage is:

• $25,000 bodily injury coverage per person/$50,000 bodily injury coverage per accident
• $25,000 property damage coverage per accident
• $10,000 PIP coverage per person

The liability insurance gets paid if the other driver uses up their insurance and files a claim against your insurance.

Opting Out

Drivers may opt out of the no-fault system by filing with the Kentucky Department of Insurance. They must still have liability insurance but do not need PIP coverage. Drivers involved in an accident may sue the at-fault driver immediately without exhausting their own insurance.

Opting out gives drivers more freedom to pursue legal action. The trade-off may be higher premiums and a longer payout time following an accident.

Pure Comparative Negligence

Kentucky law follows a pure comparative negligence system. In most car accidents, both drivers share part of the responsibility for the collision. Under pure comparative negligence, the court determines each driver's fault percentage. The court then reduces their liability and recovery by that amount.

For instance, if your insurance claim was $100,000, but the court found you 20% responsible, you would recover $80,000. Unlike most states ' modified comparative negligence rules, the pure comparative negligence rule is plaintiff-friendly. In those states, 50% or more at-fault plaintiffs can't recover damages.

Types of Damages

In legal terms, "damages" are the monetary awards given to plaintiffs following an auto accident. There are two basic types of legal damages.

• Economic damages include medical expenses, lost income and wages, and out-of-pocket property damage not covered by car insurance.
• Non-economic damages include pain and suffering, emotional distress, and disability or disfigurement.

Insurance companies and courts calculate damages separately. This is because they use tangible evidence to determine the value of economic damages. Medical bills, accident reports, and similar documents give courts proof of the type of injuries and their costs.

Courts use a device called a "multiplier" for non-economic damages. To craft an award for pain and suffering, judges multiply the medical costs by a number based on the severity of the injuries.

Kentucky allows judges to award punitive damages after a plaintiff has a monetary award in a claim. A plaintiff must show the defendant was grossly negligent or malicious. Punitive damages do not compensate the victim. They punish a defendant whose acts did not rise to criminal conduct.

Limits and Damage Caps

In keeping with its plaintiff-friendly nature, Kentucky has no caps for economic and non-economic damages. This is not a license to ask for billions of dollars. Plaintiffs must keep their claim within the scope of their actual injuries and fair compensation for pain and suffering.

There is no cap on punitive damages, but the standard of proof is much higher than for compensatory damages. Since the plaintiff must prove actual malice (the defendant knew their actions were likely to cause serious harm or death but disregarded the risk), the "cap" is the burden of proof.

Kentucky has a separate state law, the Motor Vehicles Reparations Act (KRS § 304.39-010 et seq.), that regulates car accident lawsuits and insurance claims. Under this law, the statute of limitations (the time allowed to file a legal claim) is two years from the accident date (§304.39-230).

This differs from the ordinary statute of limitations for a personal injury lawsuit, which is one year from the date of the incident. The MVRA gives drivers extra time because of the time they may need to process their claims through insurance companies.

Get Legal Advice From a Kentucky Car Accident Lawyer

Car accident cases in Kentucky favor the plaintiff, but that doesn't mean you should go it alone. Get legal advice as soon as possible. Bring your car crash case to an experienced Kentucky car accident attorney. They can give legal advice and information about your auto insurance and the strength of your claim.