What is “no-fault” car insurance?
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What is “no-fault” car insurance?

| Jul 29, 2020 | Motor vehicle accidents

Each state in the U.S. has different laws that govern car insurance payouts in the wake of a car accident. Some states do not limit the amount in damages that individuals can claim in an injury, while some states split payouts based on how much each driver was at fault.

Kentucky offers drivers “no-fault” insurance. This nearly 50-year-old statute still serves local drivers and lawmakers today. How does it work?

No-fault insurance provides quicker benefits

Kentucky passed its no-fault insurance laws in 1975. The changing insurance landscape meant that drivers were suing each other for more money, more often. To cut down on lawsuits and the burden placed on state courts, legislators enacted the Motor Vehicle Reparations Act.

Under no-fault law, drivers injured in an accident must file a claim with their own insurance company. These mandatory policies pay out initial coverage, regardless of fault in the crash. These laws protect all Kentucky drivers from some liability in a car accident while ensuring immediate coverage for medical expenses. No-fault laws help those injured receive the necessary treatment without the stress and insecurity of a lawsuit.

The details of Kentucky policy

Every state that supports a no-fault car insurance policy does place limits on its scope. Drivers may not file claims against a driver at fault unless damages exceed $1,000 in medical costs, broken bones, disfigurement, permanent injury, or death. Like most civil cases, drivers and their insurance companies settle these disputes out of court.

Some cases still end up in trial. At this point, Kentucky law determines fault using “pure comparative negligence.” Under these laws, a judge or jury translates each driver’s liability for the accident into a percentage of fault. For example, if a driver suffers $15,000 in medical bills and property damage, but a jury finds them 75% at fault, the jury will reduce the reward to $3,750.

Those involved in a car accident can reach out to a lawyer

Those with questions about a recent car accident can find answers with a local attorney familiar with Kentucky auto laws. Do not hesitate — Kentucky requires drivers to file suit within a year of an accident to recover personal injury damages.