What happens if you were in a car accident where you were the passenger and the car you were in didn’t have insurance? What if you were driving a car that wasn't yours and that car didn't have insurance?
The Kentucky Assigned Claims Plan
Since there was no insurance, you might assume there was no Personal Injury Protection (PIP) coverage. You might think you are out of luck. However, you are not! You may be eligible for what is called The Kentucky Assigned Claims Plan. This is a statutory benefit that has the same benefits as a purchased PIP or Basic Reparation policy. The Kentucky Assigned Claims Plan should not be thought of as a replacement for insurance. It also does not excuse you from driving a car without car insurance. This plan’s purpose is to cover the innocent victims who believe the car they are in is insured. It also provides coverage for you if you are traveling via mass transit, like buses or taxi cabs.
How do you qualify for the Kentucky Assigned Claims Plan?
To be eligible for this plan, there a few requirements that must be met. These include:
- You must not own the vehicle involved.
- You or anyone you live with cannot have car insurance. If someone you live with has car insurance, their PIP benefits may cover you even if their car was not involved.
- You cannot have any health insurance. If you do, it must be used as the primary insurance and be used to cover the medical bills.
How does this plan work?
The way this plan works is that every licensed auto insurance company in Kentucky is required to participate in this plan. When a person applies for these benefits, an insurance company is assigned to that case. They will investigate the eligibility and then treat that person as if they held a policy with them. If the insurance company determines that a person is eligible, they will act accordingly.
Once the designated insurance pays, they will seek reimbursement for the amount they paid from the owner of the uninsured car. If the at-fault car had insurance, they will seek the first $1,000 paid from the owner of the car. The remainder will be paid from the at-fault insurance company. If the at-fault car did not have insurance, the Kentucky Assigned Claims Plan insurance company can seek reimbursement of up to $10,000 from the owner of the uninsured car. This should not be a substitution to car insurance! This is in place to allow people to get medical treatment in a timely fashion. You are required to have car insurance on your car in Kentucky.