By: Jeffrey Blankenship
Is a NO FAULT Car wreck REALLY NO FAULT?
The Kentucky Motor Vehicle Reparations Act (KMVRA), often referred to as the “no fault” act, has the intent of simply providing a method for insured persons to receive immediate medical treatment and payment of lost wages without the need of an immediate determination of fault for a car wreck.
The overarching legislative purpose of the MVRA is to establish a no-fault automobile insurance system that provides prompt compensation and medical benefits to accident victims, reduces litigation, and promotes the availability of reasonably priced automobile insurance.
The confusion is that many folks mistakenly believe that means Kentucky no longer has a fault based system to compensate for property damage or personal injuries. That assumption, however, is actually WRONG.
This misperception is aggravated by the fact that many police officers attending accident scenes are mistaken about the meaning of “no fault” in Kentucky law. So they have, on occasion, erroneously advised folks in accidents that fault doesn’t matter. Indeed, fault DOES matter.
Here’s how it REALLY works:
- KRS 304.39 is the KMVRA. It requires EVERY auto insurer in Kentucky to provide their insureds with at least $ 10,000 Personal Injury Protection (PIP)—you should find that coverage listed on your auto policy declarations page;
- PIP covers its own insured’s medical bills and a portion of lost wages related to a car wreck regardless of whose fault the wreck was;
- Property damage STILL relies on whose fault the wreck was and the person injured but NOT at fault, still has a claim for their injuries.
- The insurance company for the person NOT at fault has a claim against the insurance company of the at fault driver for the PIP payments they make;
- In my next article I will explain WHY you should max out the coverage you can buy for PIP coverage (usually up to $ 50,000 per person) to avoid health insurance paying what PIP would cover instead.