Let’s leave the legalese to the lawyers. This is what YOU, a person operating a car or motorcycle in Kentucky, need to know in light of the new PIP Statute (July 2026).
First, you can now recover, under no-fault or PIP coverage, lost wages of up to $500 a week. What does this mean? This means that if you lose wages or income because of a car wreck and a doctor tells you not to work, your insurance company, under the no-fault coverage, will pay you up to $500 towards your lost wages. The practical, very lousy side about claiming lost wages in Kentucky is the balance of your lost wages becomes part of your personal injury claim that you are asserting against the at-fault driver. Why is this lousy? Personal injury claims from a car accident typically do not settle until at least five months or more from the date of the wreck, AND personal injury attorneys charge an attorney’s fee of the entire personal injury settlement. So, even though you were not at fault in causing the car wreck, you are having to wait to recover the balance of your lost wages, and you are paying an attorney’s fee on that recovery. This is why I tell my clients if you can continue to work after a car accident, do so!
Second, a no-fault carrier will now pay up to $5,000 towards funeral expenses. While this is pretty self-explanatory, you should remember that no-fault coverage is not fault-based. As a result, even if someone dies from a single car accident wherein they collided with a tree, the decedent’s Estate could still recover $5,000 towards the funeral expenses.
Third, and this is important, the argument that no-fault is primary or has to be used before your health insurance is false, no longer and dead. The new statute clearly states that nothing in the statute shall be construed to say no-fault is the primary coverage for a car wreck. Why is this so important? Because my advice to all my injured clients is now, clearly and unequivocally, the way to do things. RESERVE your no-fault coverage with your own automobile insurance during the first phone call with them and put that RESERVATION in writing as well. Why? Because to achieve the best results in my clients’ injury claims, I want their health insurance to pay the majority of the medical bills, and by doing so, the medical bills are discounted, which ultimately will mean more money in my clients’ pockets. You know this is the case as you can look at your own Explanation of Benefits from your health plan and see that a hospital, for example, may have billed $25,000 for a surgery but your health plan only reimbursed that hospital $10,000 for that procedure. Essentially, you are using the health plan’s discount to your advantage because you are telling the at-fault insurance company they owe your client $25,000 for the surgery bill and yet, only paying the health plan back $10,000, as that is the actual amount they paid. It can be complicated but the advice from me, Attorney Jim Desmond, a car wreck lawyer, to you as a consumer is to RESERVE the no-fault coverage, use your health insurance to pay your large medical bills and allow the health insurance lien to be paid under the no-fault coverage. See KRS 304.39-020 and KRS 304.39-241.
Fourth, the no-fault law has changed, wherein now, a medical provider paid under no-fault insurance will be paid according to the amounts listed in the Kentucky Workers’ Compensation Fee Schedule. What does that mean for you as a consumer? It means that if the chiropractor normally bills out $100 for a spinal adjustment but the Kentucky Workers’ Compensation Fee Schedule says they should only pay $60 for that adjustment, the chiropractor has to accept that $60 amount. For you, the consumer, you need to know that the chiropractor is not allowed to bill you for the $40 balance they had to write off.
Jim Desmond’s Practical Advice
Put the no-fault and added no-fault insurance on your policy before the wreck happens.
Reserve no-fault immediately after the wreck.
Call me immediately after the wreck so we can use your no-fault and health insurance to pay your medical bills.
Attorney James “Jim” Desmond
Jim Desmond is a Louisville car accident lawyer licensed in Kentucky and Indiana since 1993. He has represented victims of automobile, motorcycle, truck and pedestrian collisions throughout Kentucky.
The Desmond Difference
Every accident case is unique. Insurance companies often evaluate claims based on limited information gathered shortly after a collision. Before accepting an insurance company’s decision about fault, injuries, or the value of your claim, it can be helpful to understand all of your legal options.
If you’ve been injured in a Kentucky car or motorcycle accident, Attorney Jim Desmond offers a free consultation to discuss your case. Call (502) 609-7657 or contact us online to learn more.