The New Kentucky PIP Law (HB 627) and Your Car Accident Claim

Kentucky’s PIP rules have worked a little differently since July 15, when House Bill 627 took effect. A few months in, many drivers still don’t understand what changed. If you’re dealing with a car accident right now, those changes could affect what your insurance pays. Here’s what you should know.

What PIP Does

PIP is the part of your auto policy that pays your bills first after a crash, no matter who was at fault. Kentucky is a “choice no-fault” state, so you have PIP unless you reject it in writing.

This coverage can sort your medical bills, lost income, and the cost of paying someone to do chores or childcare you can’t handle while you’re hurt. The total is still capped at $10,000 per person, per accident. The new law didn’t change that number.

You Can Get More for Missed Work

PIP used to pay up to $200 a week for lost wages. The limit is now $500 a week, which makes a significant difference if you’re out of work for a while. But $500 is the most you can get, not an automatic payment, so you’ll need to show what you actually lost.

A vital thing to note is that the $500 also covers replacement services and certain survivor losses. It isn’t $500 for each one.

Funeral and Burial Benefits Increase

If a crash is fatal, PIP can now pay up to $5,000 toward funeral, cremation, and burial costs, up from $1,000. However, keep in mind that the higher $5,000 funeral limit isn’t extra money. It comes out of the same $10,000 PIP maximum you already have.

What Changed for Medical Bills?

HB 627 changed how medical bills are handled when they go through PIP. PIP can no longer pay more for a service than the top rate listed in Kentucky’s workers’ compensation fee schedule. If a provider submits a bill as required by law, it’s treated as a fair charge for both basic and added PIP benefits, so an insurer can’t easily argue that the price was too high.

Providers also face a time limit. They generally have 180 days to send in their charges, though the law allows an exception in certain situations. And once PIP covers a service, the provider can’t knowingly try to collect anything above the allowed rate from you.

Check Your Policy Date

Don’t assume the new rules cover you just because your accident happened after July 15. The new rules apply to benefits issued or renewed on or after that date. So if your policy renewed on July 1 and you were hurt in September, the old rules might still apply. Your declarations page may provide answers.

PIP Isn’t Your Only Option

PIP is just the starting point. If your injuries are serious enough to meet Kentucky’s thresholds, you may also be able to go after the at-fault driver for damages PIP doesn’t cover, like pain and suffering.

Kentucky’s new PIP law brought some notable changes, from higher wage and funeral limits to new billing rules. After a crash, check your policy date and understand exactly what benefits you can claim.

Talk to Us Before You Decide

If you’ve been in an accident, our London & Southeast Kentucky car accident attorneys at Cessna & George Law Firm can review your policy, explain what benefits you’re entitled to, and help you decide what to do next. Contact us today to schedule a consultation.

Source:

apps.legislature.ky.gov/recorddocuments/bill/26RS/HB627/HCS1.pdf