Kentucky law allows insurance carriers to offer PIP benefits subject to a deductible up to $1,000.00. Like other deductibles, the PIP deductible is co-insurance you must pay first on any claim filed under that coverage. So, if your injured in an auto, car, or truck accident and you seek medical care, you are required to pay your deductible up to the maximum amount before your insurance begins paying.
PIP deductibles, like health insurance deductibles, are appealing because they reduce the insurance premiums people pay on their auto, car or truck. You might be tempted to save a few dollars on your bill and get the deductible, thinking you’ll never use it. This might be a mistake.
The chances that you might be injured in an auto, car or truck accident are far greater then your chance for any other type of injury. Medical bills from these types of injuries are usually in excess of the $1,000 deductible, leaving very few times when you avoid paying the full amount of the deductible. Ultimately, you’re left with $1,000 in medical bills, which may be more than you can afford at a time you can least afford it. If you’re injured in a second accident within that policy year, you’re subject to another $1,000 deductible.
If you chose to have a deductible, make sure you understand the consequences. If you are unsure a deductible has been applied, read your declaration page provided with your insurance policy. This page outlines the coverages and premiums contained in your policy and should alert you to the need to pay a deductible if you use your PIP coverage. Make sure you determine if a deductible is a wise financial decision. If the cost without the deductible is less than the deductible per year, you might be better off without it.