Kentucky Motor Vehicle Reparations Act (MVRA): How No-Fault (PIP) Really Works

Short version: Kentucky’s MVRA is our “no-fault” system. After a crash, your own policy typically pays up to $10,000 in “basic reparation benefits” (what most people call PIP) for medical bills, part of lost wages, and certain household/replacement services—before fault is sorted out. You can sue the at-fault driver once your injuries meet Kentucky’s tort threshold (e.g., $1,000+ in medical bills or specified serious injuries).

What counts as “basic reparation benefits” (PIP)?

Under KRS 304.39, PIP is capped at $10,000 per person, per accident for economic losses: medical expenses (includes up to $1,000 funeral costs), work loss, replacement services, and, in fatal cases, survivor’s benefits.

How much of my wages are covered?
Kentucky calculates “net loss” by subtracting an assumed income-tax advantage up to 15%, which practically means up to ~85% of gross lost income is considered. There’s also a weekly cap of $200 across wage and certain replacement-service categories.

Who pays first? (Priority of coverage)

PIP normally comes from the policy on the vehicle you were in. If you were a pedestrian, it’s the policy on the striking vehicle. If that policy doesn’t pay promptly, you can proceed under any policy where you’re a PIP-insured (with reimbursement handled between insurers later).

When must the insurer pay—and what if they don’t?

PIP benefits are due monthly as loss accrues. Payments are overdue if not made within 30 days after the insurer receives reasonable proof. Overdue PIP accrues 12% interest, or 18% if the delay was without reasonable foundation; courts may also award attorney’s fees for unreasonable denials/delays.

Can I sue the at-fault driver?

Yes—once you’re outside “no-fault.” Kentucky’s tort threshold lets you pursue pain-and-suffering and other tort damages if your medical bills exceed $1,000 or you suffer specified serious injuries (permanent disfigurement, fracture of a weight-bearing bone, permanent injury, or death). Drivers can also reject no-fault in writing (keeps the right to sue and be sued from the start).

Special rule for motorcycles

Unless optional PIP is purchased, motorcycle operators and passengers aren’t entitled to PIP for motorcycle injuries. (Insurers must offer optional PIP for motorcycles.)

What if there’s no identifiable insurance?

Eligible people may seek PIP through the Kentucky Assigned Claims Plan (KACP) when basic PIP isn’t available or cannot be identified; applications are handled online via KACP. The Plan operates under KRS 304.39-160 and -170 and DOI oversight.

How long do I have? (Deadlines)

• PIP benefit claims: generally up to 2 years from the last PIP payment to seek further benefits.

• Tort claim against the at-fault driver: generally 2 years from the injury, death, or last PIP payment—whichever occurs later (other subsections apply in death or disability scenarios). Don’t wait; exceptions and triggers matter.

Step-by-step: Filing a Kentucky PIP claim

• Report the crash to your insurer and request PIP/BRB forms.

• Submit proof: medical bills/records, wage verification from your employer, receipts for replacement services.

• Designate payments: You may direct how PIP pays among “elements of loss” (e.g., which medical bills first) to stretch limited dollars.

• Track the 30-day clock; follow up on any overdue items (interest may apply).

• If coverage is unclear, consider eligibility via Assigned Claims Plan.

Frequently asked questions

Does PIP apply if I wasn’t at fault?
Yes. PIP is payable regardless of fault.

What’s the minimum PIP limit in Kentucky?
$10,000 per injured person, per accident (higher limits can be purchased).

Can I choose which bills get paid from PIP first?
Yes—insureds can direct allocation among elements of loss (useful when benefits are limited).

How fast should PIP pay once I send proof?
Insurers generally must pay within 30 days or the benefits are overdue (with interest).

What if my injuries are serious?
If you meet the tort threshold (e.g., $1,000+ medicals or listed serious injuries), you can pursue a full tort claim against the at-fault driver.

Local help from Morrin Law Office

PIP should pay quickly, but coordinating health insurance, subrogation, wage proofs, and tort thresholds gets complicated—especially when limits are tight or motorcycle rules apply. If you’re in Richmond, Lexington, or anywhere in Kentucky, we can file your PIP, preserve deadlines, and evaluate whether you’re outside no-fault so you can pursue the at-fault driver.

Free consult: (859) 358-0300

Disclaimer: This page is for general information, not legal advice. Laws change; consult counsel for your specific situation.