Kentucky car accident victims always want to know how their medical bills are going to be paid.  They have been in an accident, they’re injured, and they’re not able to work.  Many people nowadays don’t have health insurance. The assumption that is made is “If I don’t have health insurance I will have to pay the medical bills for treatment from a car accident out of my own pocket”.

In Kentucky your own insurance company will pay those medical bills.  You have what is called PIP benefits. This is short for Personal Injury Protection. You may also hear these benefits referred to as No-Fault Benefits or Basic Reparations Benefits. It’s something you pay for under your automobile insurance policy. The first $10,000.00 of your medical treatment will be paid for by your insurance company.  You fill out a PIP application  that is sent to you by your insurance company. This triggers the payment to your doctor automatically from that point on until those $10,000.00 of benefits are exhausted. 

Once the PIP Benefits are exhausted you will send your medical bills to your health insurance company. Any additional treatment will be paid by your health insurance carrier. You are personally responsible for any co-pays or deductibles. Any money you pay out of your pocket should be reimbursed by the at-fault party’s insurance company at the time your personal injury case is settled. 

You might be concerned that hey, why should my car insurance company pay for this if the accident wasn’t my fault?  This is done so that you can immediately go to the doctor of your choice. Well at the end of the case they will get reimbursed by the at-fault party’s insurance company minus a $1,000.00 inner company deductible, so your insurance company will not be on the hook for those benefits.

Just say NO when your insurance agent asks you if you would like to save a few dollars on your car insurance and offers you a PIP deductible. Saving money sounds like a great idea, but the few dollars you save may cost you $1,000.00 if you are in an automobile accident in Kentucky.(PIP is also referred to as No-Fault Benefits or Basic Reparations Benefit).

Most people have no idea what it means to have a deductible on the PIP coverage of their Kentucky automobile insurance policy. Unfortunately, most insurance agents do not adequately explain the consequences or what you are giving up by having a PIP deductible. Instead the agents’ focus is on the amount of money that you will save off of your premium, which is usually only a few dollars a month.

This is a great deal for the insurance company. The amount of money the premium decreases may be only $40.00 per year. Yet if you are in a serious car accident and seek medical treatment the insurance company will save $1,000.00.

Now here is where it gets really interesting. That $1,000.00 is the amount that your insurance company, or as we refer to them the PIP carrier, can not collect back from the at-fault insurance company. Any bills paid that are over $1,000.00 the PIP carrier will be reimbursed for by the at-fault insurance company. So you pay your insurance company a premium for the PIP policy and when it is all said and done they are out of pocket a grand total of zero. Not a bad racket to be in on.

The PIP deductible is as bad deal for you as it is a good deal for the insurance company. If you are in an auto accident in Kentucky, are injured and have to seek medical attention you are responsible for the first $1,000.00 in medical bills out of your pocket. This is because you elected to save $40.00 a year. It would take 25 years for you to be accident free to come out even. The odds are not in your favor.

Plus medical providers will want to be paid. Do you really need the added stress of dealing with bill collectors while you are recovering from injuries from the car accident? I think not.

In some cases deductibles are a good idea. On your health insurance it can save you a ton of money if you are healthy and are an infrequent visitor to the doctor. It is also beneficial on your auto collision coverage. Once again it can save you money. But never should you have a PIP deductible. It only benefits the insurance company and hurts your pocket book and possibly your medical treatment.