Should I Buy Added Reparation Benefits?

Basic Reparation Benefits
In Kentucky, Basic Reparation Benefits (also called Personal Injury Protection, PIP, or No-Fault Benefits) is auto insurance coverage that will cover you and your passengers if you are in an accident. The standard amount offered by insurance companies is $10,000. This is the minimum amount required by the Kentucky Revised Statutes. This $10,000 will help cover your medical bills and lost wages. Now, $10,000 seems like it would be plenty of money to help cover your expenses. However, when you start adding up the medical expenses and lost wages, you can use that $10,000 quickly.

Related: Do PIP Deductibles Really Save You Money On Kentucky Car Insurance?

Lost wages
The highest amount you can receive for lost wages with Basic Reparations Coverage is $200 a week. This is the highest amount you will receive no matter how much your weekly income was when you were working. If you make more than that a week and don’t have disability insurance, you may want to consider purchasing Added Reparation Benefits. Added Reparations Benefits work similar to your PIP benefits. They help cover medical expenses and lost wages. Added Reparation Benefits only applies to those individuals on the insurance policy. Any other passenger would only receive the Basic PIP benefits. The amount of Added Reparation Benefits insurance companies will allow varies from company to company. Some may go as high as $40,000 while others will go up to $90,000. This is a good question to ask your insurance agent.

Medical expenses
Along with that, Added Reparation Benefits can be very useful in covering your medical expenses. One factor you should consider when deciding whether to purchase extra coverage is your health insurance. Your health insurance will cover your medical bills once the PIP benefits are exhausted. If you do not have health insurance, or you have a high deductible or high co-pays, it may be in your best interest to ask your agent for information on Added Reparation Benefits. Your agent may not offer this added coverage, but it doesn't hurt to ask.

Related: Do I Really Need To See A Doctor After An Accident

When it comes to insurance coverage for lost wages and medical expenses, you don't want to compromise. You should ask your insurance agent about Basic Reparation Benefits and Added Reparation Benefits. They will answer any questions you may have about your coverage. Don't wait until after you've had an accident to ask about your Basic Reparation Benefits. Contact your insurance agent to see what your coverage includes.

Michael Schafer
The Personal Injury Attorney for Louisville and Kentucky
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