Most people with car insurance don’t realize that, under Kentucky law, they
automatically have access to $10,000 to cover injuries sustained in a car
accident – even if they caused the accident. And the best part – you don’t have
to pay the money back! In Kentucky, these benefits are referred to as Personal
Injury Protection Benefits (or “PIP”) or Basic Reparations Benefits (or “BRB”).
These benefits all fall under the umbrella term “No-Fault Benefits” and are
available to you no matter who is responsible for causing the accident. When you
are injured in a car accident, you can use PIP benefits to cover your medical
expenses. This is extremely important for people without private health
insurance – even if you don’t have health insurance, PIP will cover your
accident-related medical care. All you have to do is give your doctor or
hospital your auto insurance information, and they will send the bills to your
auto insurance company for payment. PIP benefits also will cover any lost wages
you sustain related to a car accident. In fact, PIP will pay you up to $200 per
week towards your lost wages. If your injuries prevent you from working after a
car accident, and you want to designate a portion of your PIP benefits to cover
lost wages, you should contact your insurance company and complete a PIP
application. You also will need to provide the insurance company with a doctor’s
stating that you must be off work, and proof of your wages (such as a recent pay
stub or a wage verification form completed by your employer). As the injured
party, you have control over how to use your PIP benefits. For example, if you
want all of your PIP benefits to cover your lost wages, you can direct your auto
insurance company to do that. If you aren’t going to miss much work, but have
substantial medical bills, you can direct your auto insurance company to pay off
the medical bills before covering your lost wages. You also may be able to
utilize your PIP benefits to cover certain out-of-pocket expenses resulting from
your accident. You have control over the process. Deciding to how best use your
PIP benefits is a tricky process, and you should work closely with your attorney
to decide on the best options for you. For example, availability of short and
long-term disability, private health insurance, Medicare, Medicaid and workers’
compensation benefits will impact how you use your PIP benefits. In you have
elected to purchase more than the $10,000 in PIP benefits automatically
available to you (known as “Added Reparations Benefits”) you may have access to
substantially more funds. An experienced attorney can help you decide how to
best utilize these benefits. If you have questions about how PIP benefits work,
or if you were injured in a car accident, please contact personal injury and
auto accident attorney Chris Haden at The Haden Law Office.