Frequently Asked Questions

The Schafer Law office FAQ's

Below are some initial questions many clients have when they first contact Michael A. Schafer, Attorney at Law. The questions below may address many initial concerns you may have. If you don't find the answers here, you should contact us for answers to questions specific to your case. The consultation is free.

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  • What Is The Kentucky Assigned Claims Plan?

    The Kentucky Assigned Claims Plan is a statutory benefit that you may be eligible for if there is no other PIP coverage for which you qualify. If you are a passenger in a car that does not have insurance coverage, or you are driving a car that does not have insurance coverage, then you may be eligible for benefits under the Kentucky Assigned Claims Plan. You may also be eligible if you are a passenger on a bus or cab and you do not have your own car insurance policy. These benefits are the exact same benefits you receive under Personal Injury Protection or Basic Reparation Benefits from car insurance purchased.

    Read more about The Kentucky Assigned Claims Plan here.

  • What Does Stacking Mean In Kentucky?

    Stacking is the term that describes taking several different insurance policies and adding them together for greater benefit amounts. For example, you have three cars insured on three different insurance policies. You have $100,000 of Underinsured Motorist Coverage on each of these cars. If you are in a car accident and your damages total over $300,000, you may be able to collect on all three of these policies.

    For more information on stacking, check out this article, "What Is Stacking?"


  • Do I Need Towing Coverage?

    Yes, you may purchase towing insurance as part of your car insurance policy. Many private companies, such as AAA, also offer road assistance packages. I would compare the rates and benefits of your insurance company and the private companies. Then go with the best deal. Generally, AAA will have a larger mileage for their towing radius if you purchase their plus package. This coverage will give you the option of having your car towed to the repair shop of your choosing.

  • What Are Added Reparation Benefits?

    Added Reparation Benefits are additional medical benefits and lost wage benefits that you may purchase from your insurance company. This will increase the amount of medical bills and lost wages that are paid by your insurance company should you be in a car accident. This is similar to PIP benefits.

  • What Is Uninsured Motorist Coverage (UM)?

    Uninsured Motorist Coverage (UM) is Kentucky car insurance coverage that pays you for your pain and suffering. It also covers your out of pocket expenses if you are in an automobile accident. If you are injured by a driver of a car that does not have insurance, you will also be covered under this coverage.

  • What Is Underinsured Motorist Coverage (UIM)?

    Underinsured Motorist Coverage (UIM) is Kentucky car insurance that covers you if the injuries that you sustained in an automobile accident, that was not your fault, are greater than the insurance coverage of the driver that hit you.

  • Should I Reject Or Waive My Kentucky No-Fault Benefits?

    In Kentucky, Basic Reparation Benefits (Personal Injury Protection or PIP) are part of the liability package unless No-Fault Insurance is formally rejected. You do have the option to reject your No-Fault Coverage. Your insurance company must inform you of this in writing. If you do choose to do this, your car accident case will not be controlled by the Kentucky No-Fault Statute but by Kentucky case law. This rejection must be done in writing and filed with the Office of Insurance.

    There are additional benefits in the statute, such as how the medical bills are paid, how to appeal the denial of medical payments and penalties to the insurance company for wrongful denial of these payments. I cannot fully discuss those here. Never, under any circumstances or for any reason, reject your rights under the No-Fault Statute.

  • What Questions Should I Ask My Agent When Buying Insurance?

    The most important questions you can ask your insurance agent are:

    • What does this coverage mean?
    • How much does it cost?           
    • How much more will it cost if I raise my limits?
    • Is there another company that will give me a better rate?

    Have your insurance agent go through each coverage area and ask these questions about each area of insurance coverage. Have all the coverages explained to you. Make sure you understand exactly what you are purchasing. Get the right coverage for you by asking the right questions.

  • What Are PIP Deductibles? Are They A Good Idea?

    A PIP deductible is like any other deductible. If you have a $1,000 deductible, you will have to pay for the first $1,000 in medical bills and lost wages out of your own pocket. Also, you will not be reimbursed for any lost wages. This is a bad deal for you and a good deal for the insurance company.

  • When Does A Teenaged Driver Need To Be On My Car Insurance?

    You do not need to obtain additional coverage when your high school student obtains their permit and starts driving under most insurance policies. Also, you do not have to list them as drivers on your policy while they get their permit. This all changes when they obtain their driver’s license. At that time, you must call your insurance agent and add your child as a driver on your car insurance policy.