Choose Your PIP Wisely
Making good, informed choices is important when purchasing car insurance. Kentucky law requires every car insurance policy to provide at least $10,000 in basic reparations benefits, commonly known as PIP (personal injury protection) or no-fault benefits.
PIP benefits help pay for medical bills and lost income if you are hurt in a car wreck. PIP benefits apply regardless of fault. Should you have less, more, or no PIP coverage at all?
Although car insurance companies are required to offer PIP coverage, there are a few choices to consider. You can choose to have a PIP deductible or to reject PIP coverage altogether. Both choices come with risks, including lack of access to medical care or wage benefits, and higher insurance premiums.
Insurance companies can sell you an auto policy with a PIP deductible of up to $1,000. You will still have PIP benefits, but a $1,000 PIP deductible means that you will have to pay the first $1,000 of your medical bills if you are hurt in a car accident. Your PIP benefits will only start paying after you have paid the first $1,000 yourself. You can not recover the PIP deductible from the at-fault party.
You also have the choice to completely reject PIP benefits, but it is not recommended. There is a written rejection form that must be completed and filed with the Kentucky Department of Insurance to reject PIP. If you reject PIP benefits you will not have coverage for medical bills or wage loss before you settle a fault-based claim. If there is no other party at fault, or if the at-fault party is uninsured, you may have no way to recover money for your bills and wage loss.
Also, policy premiums may be higher if PIP is rejected. Our advice: Do NOT reject or waive PIP coverage.
On the other extreme, you can carry more than $10,000 in PIP coverage. Many people have no idea that they can choose to buy extra PIP (added reparation benefits). This is a great choice if it is in your budget. Medical treatment is costly, and the price of extra PIP may be reasonable and worth considering. Also, with added PIP you may be eligible for larger lost wage payments.
Kentucky law does give you some choices when it comes to your PIP coverage. Choose wisely!