What Kentucky’s New PIP Law Means for You After a Car Accident

Your paycheck may stop after a car accident, but your regular expenses do not. You may also be facing an ambulance bill, hospital charges, physical therapy, and other medical bills while trying to figure out when you can return to work.

Kentucky’s personal injury protection coverage can provide money for some of these losses without waiting for an insurance company to determine who caused the accident. In July 2026, Kentucky increased several PIP benefits and changed how medical expenses submitted to PIP are handled.

The new PIP law provides more help with lost wages and may allow PIP funds to last longer when medical expenses are submitted under the new fee schedule. However, the total basic PIP limit remains $10,000. The new rules also apply based on the date the insurance policy was issued or renewed, not simply the date of the accident.

Although this blog focuses on Kentucky’s new PIP law, Emery Law Office also represents people injured in car accidents throughout Southern Indiana. Speak with an attorney about the laws and insurance coverage that may apply to your accident.

At a Glance

• The weekly limit for lost wages and certain related losses increased from $200 to $500.
• Funeral, cremation, and burial coverage increased from $1,000 to $5,000.
• The total basic PIP limit remains $10,000 per person per accident.
• Medical expenses submitted to PIP are subject to Kentucky’s workers’ compensation fee schedule.
• Providers that submit medical expenses to PIP generally have 180 days to do so.
• The law restricts balance billing above the applicable fee-schedule amount when a medical expense is covered by PIP.
• The changes apply to policies issued or renewed on or after July 15, 2026.

How Does Kentucky PIP Work After a Car Accident?

Kentucky no-fault insurance is governed by the Motor Vehicle Reparations Act. Under this system, PIP can pay certain losses after a car accident regardless of fault. You do not have to wait for the insurance companies to determine whether you or the other driver caused the crash before seeking PIP benefits.

Basic PIP coverage is mandatory for registered motor vehicles in Kentucky except motorcycles. Drivers can opt out of Kentucky’s no-fault system, but they must reject it in writing. That decision affects PIP benefits and certain rights involving a claim against an at-fault driver. It’s not a choice you can make after an accident has already occurred.

Personal injury protection may pay for:

• Medical bills, including hospital stays and surgeries
• Doctor visits and prescription medications
• Physical therapy and other medical treatment
• Lost wages when an injury prevents you from working
• Necessary household or family services you cannot perform
• Certain expenses following a fatal accident

In Kentucky, PIP insurance provides up to $10,000 for covered economic losses. It can cover up to $10,000 in medical expenses if none of the money is used for lost wages, replacement services, or another covered loss.

The insurance company responsible for PIP payment may not be your own insurance company. Coverage usually comes from the policy on the motor vehicle you occupied. If you were a pedestrian, PIP usually comes from the insurance covering the vehicle that struck you.

Does the New PIP Law Apply to You?

Kentucky House Bill 627 took effect on July 15, 2026. However, the new rules do not automatically apply to every car accident that occurred after that date. The changes apply to basic and added reparation benefits issued or renewed on or after July 15, 2026.

For example, your auto insurance policy may have renewed on July 1, followed by a car accident on August 1. Although the accident happened after the law took effect, the policy renewed before July 15. The earlier rules would still govern the PIP benefits available for that accident.

Someone injured in a similar accident under a policy renewed on August 1 may receive benefits under the new rules. This means two injured people could have different weekly limits even though their accidents occurred on the same date.

Your policy declarations page and renewal records may provide the answer. If more than one insurance policy could apply, a Kentucky auto accident attorney can identify the responsible insurance carrier and determine which PIP law governs the claim.

How Did Kentucky Change PIP Benefits?

Kentucky increased several individual benefits but left the overall PIP limit unchanged.

More Money May Be Available for Lost Wages

An injury can prevent you from working for days, weeks, or longer. When you’re dealing with lost wages after a car accident, the difference between the previous and current weekly limits can have a direct effect on your household budget. Under the previous limit, PIP paid no more than $200 per week for work loss and certain related losses. That amount often replaced only a small portion of an injured person’s paycheck.

The amended KRS 304.39-130 raises the weekly limit to $500. The $500 figure is a maximum, not an automatic payment. You must show how much income you lost because of the accident. The insurance adjuster may request pay stubs, tax returns, work schedules, an employer statement, and medical documentation supporting your time away from work.

The $500 combined weekly limit also covers replacement-services loss and certain survivor losses. Replacement services are ordinary and necessary tasks you would have performed for yourself or your family if you had not been injured. They may include childcare, housework, lawn care, or transportation to medical appointments.

Families May Receive More Help With Funeral Expenses

The new PIP law raises the maximum amount allowed for funeral, cremation, and burial expenses from $1,000 to $5,000. This increase can provide more immediate assistance after a fatal motor vehicle accident. However, the $5,000 still comes from the available PIP benefits. It is not an additional payment on top of the $10,000 basic limit.

A family may also have the right to seek compensation through a wrongful death claim against the at-fault party. That claim is separate from the PIP funeral benefit.

Kentucky Expanded Insurance Fraud Enforcement

House Bill 627 gives the Kentucky Attorney General authority to investigate and prosecute insurance fraud alongside Commonwealth’s attorneys and county attorneys. Kentucky law also allows a person harmed by a fraudulent insurance act to seek compensatory damages and reasonable investigation and litigation expenses, including attorney fees. Whether conduct qualifies as insurance fraud depends on the specific facts.

Can the New Rules Help Your PIP Funds Last Longer?

Car accident medical bills can accumulate quickly. An ambulance, emergency care, diagnostic imaging, surgery, and follow-up treatment can consume $10,000 before you have recovered from serious injuries.

House Bill 627 limits what PIP can pay for medical expenses based on Kentucky’s workers’ compensation medical fee schedule. The auto insurance company cannot pay more than the applicable fee-schedule amount for a covered service.

This may help preserve more of the PIP fund for additional medical care or lost wages. However, using the fee schedule does not make your car accident a workers’ compensation case. Kentucky is only borrowing the payment rates.

House Bill 627 does not make PIP the primary source of payment for medical expenses, and a medical provider is not required to submit its charges to PIP. The provider may elect not to bill PIP and instead charge you in full, seek payment from a future settlement, or bill your health insurance. When the provider does not submit its bills to PIP, its charges are not limited by the PIP fee schedule. If the provider submits an expense to PIP, the PIP payment is limited by the fee schedule.

The law also protects you from certain balance billing. When a medical expense is covered by PIP, a medical provider cannot knowingly pursue you for the part of the charge above the applicable fee-schedule maximum. The provider cannot damage your credit because you refuse to pay that excess amount.

This does not mean every unpaid medical bill disappears. You could still face a bill if:

• The provider billed you or your health insurance instead of submitting the expense to PIP.
• The treatment was not covered.
• Your PIP benefits were already depleted.
• The provider or insurance company lacked necessary information.
• Another insurance policy was responsible for payment.
• You directed PIP funds toward lost wages or another covered loss.

If a provider sends you a bill, find out whether the expense was submitted to PIP and compare it with the insurance company’s explanation of benefits before paying it.

Why Does the 180-Day Billing Deadline Affect You?

When a provider chooses to seek payment from PIP, the provider generally must submit its charges within 180 days after providing treatment. Although this is primarily the provider’s responsibility, you may still be affected if the provider and insurance company disagree about whether a PIP bill was timely or properly submitted.

While your PIP claim is open, check:

• Whether each provider has the correct claim information
• Whether each provider intends to bill PIP, health insurance, or you
• Whether the insurance company received any bill submitted to PIP
• Whether the bill was paid, reduced, or denied
• Why the insurance carrier denied any charge
• How much PIP coverage remains

Do not delay necessary medical care merely because you are uncertain which insurance company should pay. Address the billing question while records are available and before the PIP fund is gone.

Why Can Higher Benefits Still Create a Problem?

Kentucky increased the weekly work-loss benefit without increasing the total $10,000 PIP limit. If you cannot work for six weeks and qualify for $500 per week, $3,000 of your available PIP coverage could go toward lost wages. That would leave $7,000 for ambulance services, hospital care, other medical treatment, and replacement services.

Kentucky law gives you a formal right to direct in writing how your PIP benefits are divided among medical bills, lost wages, and other covered losses. The insurance company must follow that direction for future payments. However, choosing to use more of the $10,000 fund for one expense leaves less available for the others.

Using more PIP for lost wages may help you pay rent and other household expenses. It can also leave less for medical bills. Allowing medical care to consume the entire fund could leave nothing for the paychecks you missed.

Before directing benefits, consider:

• How long your doctor expects you to remain off work
• What additional medical treatment you may need
• How much PIP the insurance company has already paid
• Whether you have health insurance
• Whether the policy includes added reparation benefits
• Whether you have a claim against the at-fault driver

There is no single allocation that works for every injured person. The decision should reflect your injuries, income loss, treatment needs, and other available insurance coverage.

Can You Seek Compensation Beyond PIP?

PIP provides initial benefits regardless of fault, but it may not be your only source of payment. You have the right to seek compensation for damages from an at-fault party when Kentucky law allows a liability claim.

Kentucky’s no-fault system allows lawsuits when medical expenses exceed $1,000. You may also pursue a claim against the at-fault driver when the accident causes a broken bone, permanent injury, permanent disfigurement, loss of a body member or function, or death.

A liability claim can seek losses that PIP does not fully cover, including additional medical expenses, lost income, and physical pain.

Kentucky requires vehicle owners to carry at least $25,000 in bodily injury liability insurance for injuries to one person. A negligent driver may have more coverage, but even $25,000 may be insufficient when a car accident results in surgery, permanent injury, or specialized medical care. Your uninsured or underinsured motorist coverage may provide another source of payment.

Kentucky’s statute of limitations is generally two years for car accident claims governed by the Motor Vehicle Reparations Act. The filing deadline may run from the injury, death, or last PIP payment, depending on the claim and whether benefits have been paid. Because waiting can jeopardize your legal rights, do not rely on the insurance company to tell you how long you have.

Frequently Asked Questions

Does Kentucky PIP pay medical bills regardless of fault?

Yes. Kentucky’s no-fault insurance covers qualifying medical bills regardless of who caused the accident. Fault may become important when you pursue damages beyond PIP.

Did Kentucky increase the total PIP limit?

No. Basic PIP remains limited to $10,000 per person per accident. The new law increases particular benefits and changes medical payment rules without increasing the overall limit.

How much can PIP pay for lost wages?

The new weekly maximum is $500 for qualifying policies. The amount you receive depends on your documented income loss and the PIP balance available.

Can I sue if my medical bills exceed $1,000?

Kentucky’s no-fault system allows a claim against the at-fault driver when medical expenses exceed $1,000. Certain injuries also satisfy the threshold regardless of the medical bill amount.

Can a provider bill me for more than PIP paid?

If a provider submits a medical expense to PIP, the provider cannot pursue you for the portion of that covered expense above the applicable fee-schedule maximum. However, providers are not required to bill PIP. A provider may instead bill your health insurance or seek payment from you or from a future settlement. Other balances may also require review if the treatment was not covered or the PIP fund was depleted.

What if I live in Southern Indiana but was injured in Kentucky?

Kentucky’s PIP rules may still affect your claim if your car accident happened in Kentucky, even if you live in Southern Indiana. The accident location, the vehicle you occupied, where the insurance policy was issued, and the policy language can influence which coverage and state laws govern. Emery Law Office represents car accident victims in both states, and we can review the circumstances and explain which laws and insurance requirements may affect your claim.

Find Out How the New PIP Law Affects Your Claim

The new PIP law can provide more help when you cannot work and may make PIP funds last longer when medical expenses are submitted under the new fee schedule. However, you still have only a limited fund available for medical bills, lost wages, and other covered losses.

Emery Law Office prepared for the changes before they took effect. We participated in roundtable discussions with other personal injury firms, the Kentucky Justice Association, and the workers’ claims commissioner to examine how the new rules affect injured clients and medical providers.

I’m Melissa Emery, the founder of Emery Law Office and a Kentucky car accident attorney. I am also licensed in Indiana and represent people injured in car accidents throughout Southern Indiana. Having experienced the disruption of a car accident firsthand, I know that PIP represents more than an insurance balance. It may pay for treatment, replace part of your missing paycheck, or help keep your household functioning.

At our female-owned law firm, we can determine which PIP rules apply, review where your benefits are going, and identify other insurance coverage that may be available. We can also examine your police report, medical records, and lost-income documentation before you sign a release or accept a settlement.

We handle car accident claims on a contingency fee basis, so you pay no attorney’s fee unless we recover compensation for you. Call (502) 771-1529 or use our confidential online contact form to contact us for a free consultation and police report review.

Copyright © 2026. Emery Law Office. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

Emery Law Office
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Louisville, KY 40205
(502) 771-1529
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