Car insurance claim rules in Kentucky

The clock on a Kentucky claim

The Kentucky Department of Insurance sets claim deadlines in 806 KAR 12:095, its regulation on unfair claims settlement practices for property and casualty insurance. Where the regulation says "days" without "calendar," its definitions count weekdays other than holidays.

On claims under your own policy, the insurer must also warn you in writing at least 30 calendar days before a policy time limit runs out if you have no lawyer. Keep a dated copy of everything you send. If deadlines slip, our page on claims that drag on shows how to put it in writing.

When a Kentucky car is a total loss

KRS 186A.520 makes a car a salvage vehicle when the estimated or actual cost of parts and labor to restore it exceeds 75% of its retail value, as set by a nationally accepted used car valuation guide. The cost of reinstalling a deployed airbag is left out of that test, though the insurer still includes it in the damage estimate it pays under your policy. The section was last amended effective July 15, 2026.

• Taxes and fees are part of the payment. A cash settlement covers the cost of a comparable car including all applicable taxes and license fees, less your deductible, unless the Transportation Cabinet would refund the fees (806 KAR 12:095, Section 7).
• Local cars first. The value is the cost of a comparable car in your local market area, or one of two or more dealer quotes if none is available.
• You can reopen it. If you tell the insurer within 35 days of receiving the check that you can't buy a comparable car for that amount, it must reopen the file.

For more on testing a valuation, see total loss claims.

Reporting a Kentucky crash

Under KRS 189.580, a driver who is physically able must notify the police or 911 immediately after a crash on a Kentucky highway that kills anyone, causes a known or visible injury, or leaves a car unable to be driven. If the driver can't, the duty passes to the owner or an occupant.

When no officer investigates a crash that causes an injury, a death or property damage of $500 or more, the driver must file a written report with the Kentucky State Police within 10 days. When an officer does investigate, the agency files the report with the State Police within 10 days.

Choice no-fault and who pays

Under the Motor Vehicle Reparations Act, your own policy's basic reparation benefits, often called PIP, pay injury losses first, whoever caused the crash. In exchange, your right to sue for pain and suffering is limited unless the injury passes a threshold.

• The threshold: medical expense benefits over $1,000, or an injury that includes permanent disfigurement, a fracture, loss of a body member, permanent injury, permanent loss of a bodily function, or death (KRS 304.39-060).
• The choice: any person may reject the limits on their tort rights, in writing or electronically on the department's form, and keep the full right to sue and be sued.
• Comparative fault: under KRS 411.182, a court sets each party's share of fault and your award drops by yours; the statute sets no percentage that bars recovery.
• Car damage is not part of no-fault. You claim it from the at-fault driver's insurer or under your own collision coverage. See PIP and MedPay claims for the injury side.

Deadlines to sue and where to complain

A Kentucky crash lawsuit for injury must generally be filed within two years after the injury or the last basic or added reparation payment, whichever is later (KRS 304.39-230). A claim for damage to your car or other personal property must be filed within two years (KRS 413.125).

1. Ask the insurer in writing for the reason for a denial or a low offer and the policy language behind it.
2. Call the Kentucky Department of Insurance toll-free at 800-595-6053.
3. File a complaint through the department's online complaint page if deadlines pass or the insurer won't explain itself; our guide to insurance department complaints shows what to include.

Questions people ask