Kentucky is a no-fault state for motor vehicle injuries. Auto policies include personal injury protection, which state law calls basic reparation benefits. It pays an injured person’s medical bills and lost income, up to $10,000, no matter who caused the crash.
What it covers and who is covered
Basic benefits pay for economic loss from an injury: reasonable medical expenses, lost income, the cost of replacing services the injured person can no longer perform, and, after a death, funeral costs and survivors’ losses. The total is capped at $10,000 per person per accident. Since July 15, 2026, lost income and replacement services are payable at up to $500 a week, up from $200. Benefits do not pay for pain and suffering. Insurers must offer added coverage on request.
The insurer of the vehicle a person was riding in normally pays, and a pedestrian is paid by the insurer of the vehicle that struck him or her. Motorcycles are different. Coverage is optional, and a rider or passenger receives no basic benefits unless it was purchased.
Limits on lawsuits and rejecting no-fault
In exchange for these benefits, the right to sue the at-fault driver is limited. An injured person cannot recover from that driver the losses that basic benefits cover. A claim for pain and suffering is allowed only if medical expenses exceed $1,000, or the injury involves a broken bone, permanent disfigurement, permanent injury, permanent loss of a bodily function or death.
A person may reject these limits by filing a rejection form with the Kentucky Department of Insurance before an accident happens. The rejection stays in effect until it is revoked in writing. Someone who rejects keeps the full right to sue and can be sued without the thresholds, but cannot collect basic benefits unless that coverage is bought back.
Required coverage
Every owner must carry liability insurance of at least $25,000 for injury to one person, $50,000 for all injuries in one accident and $25,000 for property damage, or a single limit of $60,000. Basic benefits are required too, except on motorcycles. Owning or driving a vehicle without this insurance carries a fine of $500 to $1,000, up to 90 days in jail, or both.
Deadlines
If no benefits have been paid, a lawsuit for benefits must generally be filed within two years after the loss and no later than four years after the accident. If benefits have been paid, the deadline is two years after the last payment. A lawsuit against the at-fault driver must be filed within two years after the injury, the death or the last basic benefit payment, whichever is latest.
This article is general information about Kentucky law, not legal advice, and the law may have changed since it was last reviewed in October 2026. For advice about your own situation, talk to a lawyer.