What To Do After a Kentucky Car Accident

Kentucky follows a "choice no-fault" system of personal injury law.

All Kentucky drivers are required to have personal injury protection (PIP) insurance included with their auto policy. What this means is that if you're in an accident, you would file a claim on your own insurance policy—regardless of who is at fault.

All motor vehicles in Kentucky (except motorcycles) are required to have insurance policies that include a minimum of $10,000 per person, per accident in PIP coverage.

If you're a Kentucky driver in an accident that you caused, no-fault insurance could be to your benefit because the other driver is not permitted to sue you for their damages unless their medical expenses are above a certain threshold.

If you were the victim of an accident caused by another driver, you can have your expenses covered quickly and without a lengthy process of determining who was at fault. If your expenses exceed the amount of your insurance coverage, you would then turn to the at-fault driver's policy or file a lawsuit.

The threshold is for your bodily injuries, only. You could file a claim against the at-fault driver for property loss or damage to your vehicle if the cost is not covered by your insurance.

What does PIP coverage include?

PIP insurance covers:

• Medical expenses including doctor and hospital visits, surgeries, medications, diagnostic testing, and other procedures
• Lost wages during the time of your recovery from the accident
• Other out-of-pocket costs like physical therapy or other ongoing therapies, home modifications, assistive devices or prosthetics, or other related expenses

Opting out of no-fault limitations

Yes, it's a "requirement" that you have PIP insurance in Kentucky. But also, there is a way to opt-out of this type of coverage. You may file a Kentucky No-Fault Rejection Form with the Kentucky Department of Insurance, which would allow you to elect not to carry PIP.

However, you will be required to have the following:

If you have PIP insurance, the no-fault law means you waive your right to file a lawsuit for medical expenses against the at-fault driver. However, if you opt-out of PIP, another driver could file a lawsuit against you if you are at fault.

1. Economic damages

Economic damages are those with a specific monetary amount. For example, medical treatments, property loss, lost wages, rehabilitative therapies, assistance with daily life activities (like housekeeping, childcare, etc.) are all included in an award for economic damages.

You can determine some of the amount of economic damages by totaling the costs of all of your associated bills and expenses. But that's not always the whole story. If the accident resulted in only minor injuries and you're completely recovered and back to work, then this might be a good way to figure out damages.

However, if your injuries were severe and require ongoing treatment or follow-up, you likely don't know ahead of time what the total costs will be (and for how long you're going to be paying for them).

In addition, if you've had to take extended time off from work and you're still not back to the job you had before your injury (particularly if you don't know when or if you can go back to the same job and salary), you likely aren't sure exactly how much you're losing or will lose because of reduced salary or benefits.

That's why you need a car accident lawyer as soon as possible after your accident. Your attorney will work with medical experts, actuaries, financial professionals, and others to determine what your costs will be in the long term. Whether your injury is expected to be treated and resolved in the near future or will leave you with lifelong expenses and disabilities, these are not calculations you should make on your own. Your lawyer is the best person to determine the amount of costs in the future.

2. Non-economic damages

Non-economic damages are those that don't have a specific monetary value, but that doesn't mean they don't count.

Examples of non-economic damages include:

• Pain and suffering (emotional distress)
• Loss of consortium or companionship
• Loss of enjoyment of daily life

Both economic and non-economic damages are considered "compensatory damages" because they provide compensation for your losses.

3. Punitive damages

Another less common type of compensation is punitive damages. Kentucky defines punitive damages as "exemplary damages" and those "awarded against a person to punish and discourage him and others from similar conduct in the future." (KRS 411.186)

In order to receive punitive damages, the plaintiff must prove by clear and convincing evidence that the defendant acted with oppression, fraud or malice.

There are no limits on punitive damages in Kentucky, but there are certain questions that will be asked in order to award punitive damages, such as:

• How likely is it that the defendant knew at the time of the accident that their action or inaction would result in serious injury to the plaintiff?
• To what extent was the defendant aware of that likelihood?
• Did the defendant take action to remedy their behavior after it became known?
• Did the defendant profit from the action that caused the injury?
• How long did the harmful actions last, and did the defendant try to conceal them?

Punitive damages can be awarded by the court in a personal injury lawsuit if the defendant's action (or omission) was so willfully negligent or reckless that the court determines it warrants punishment. A punitive damage award is separate from (and in addition to) the plaintiff's regular damages award.

For example, in a car accident where a plaintiff suffered severe and permanent injuries, punitive damages could be awarded if the defendant was driving under the influence of drugs or alcohol, among other things.