How Does My Auto Insurance Work? I Have No Fault Insurance, Is That Enough?
This is an individual decision for each person and family but understanding how your auto insurance works is the first step in answering this important question. In Kentucky, the No Fault coverage of your auto insurance policy pays your own Medical Bills and Lost Wages up to certain limits regardless of who was at fault in the accident. Kentucky’s state minimum required no fault benefit coverage is $10,000 to be applied for medical bills and lost wage reimbursements.
The wage claim is payable up to a maximum of only $200 per week.
For example, if you have the Kentucky’s minimum required coverage of $10,000 in No Fault benefits (sometimes referred to as “personal injury protection” [PIP], or “basic reparations benefits” [BRBs]), when you have attained that much in paid medical bills and/or reimbursed lost wages your insurance company will no longer pay any bills or wages. Even if you were not at fault in the accident, the at-fault driver’s insurance will not pay them either.
If you have no health insurance to pay medical bills when these benefits are exhausted you may have difficulty finding medical care for your injuries. Likewise, if you earn more than $200/week after taxes you may have difficulty meeting your financial obligations since with this level of coverage you are not entitled to any more than $200 per week. Simply put, when the No Fault benefits are exhausted no additional bills or wages are paid.
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