Kentucky just changed its no-fault insurance rules. If you were in a car accident – or if you think one might be coming – here is what you actually need to know.
House Bill 627, passed in the 2026 legislative session, makes meaningful changes to Kentucky’s Personal Injury Protection (PIP) system. But there is a catch: the new rules do not apply to everyone. Whether the new law helps you depends on when your accident happened and when your insurance policy was last renewed.
What HB 627 Changes
Three things changed under the new law:
1. Wage loss benefits go up – significantly. Under the old rules, PIP paid up to $200 per week in lost wages if you had to miss work because of your accident injuries. Under HB 627, that goes up to $500 per week.
If you were making $800 a week and couldn’t work for six weeks after a serious crash, that is the difference between $1,200 and $3,000 in wage loss coverage. It matters.
2. Funeral benefits increase. The PIP funeral benefit goes from $1,000 to $5,000. For families dealing with a fatal accident, this is a meaningful change.
3. A medical expense fee schedule is established. HB 627 creates a fee schedule limiting how much medical providers can charge PIP for treatment – capped at the same rates used in workers’ compensation cases (KRS 342.035 maximums). This caps what providers can bill PIP, not what you receive as the insured. In practice, it limits what your insurer is obligated to pay your medical providers, which can affect how providers handle PIP billing going forward.
The Key Question: Does This Apply to Your Accident?
Here is where people are getting confused – and where the stakes are real.
The new law applies to insurance policies issued or renewed on or after the effective date – approximately mid-July 2026, based on the 90-day rule under Ky. Const. § 55 (bills without emergency designation take effect 90 days after the session adjourns). We will update this with the confirmed date once it is official.
That means two different scenarios depending on your situation:
If your accident happened before the effective date
The old rules apply – full stop. If you were injured before the effective date, the old billing standards and the $200 wage loss cap govern your claim, even if your policy renews after the law takes effect. The controlling date is when you were hurt, not when your policy renews.
- Wage loss cap: $200/week
- Funeral benefit: $1,000
- Fee schedule: does not apply
If your accident happened after the effective date – and your policy had renewed
If your policy was issued or renewed after the effective date, and your accident happened after that renewal, you are under the new rules.
- Wage loss cap: $500/week
- Funeral benefit: $5,000
- Fee schedule: applies
What This Means If You’re Currently in a Claim
If you were injured in a car accident in Kentucky in 2025 or early 2026 and you’re still working through a PIP claim or a personal injury case, the old rules apply to your situation. HB 627 does not reach back and change your coverage retroactively.
This also means:
- Your wage loss cap is $200/week, not $500/week, if your accident predates the effective date.
- You should still evaluate whether your injuries allow you to step outside the no-fault system and pursue the at-fault driver directly – that threshold ($1,000 in medical expenses, or a permanent injury, fracture, disfigurement, death, loss of body member, or permanent loss of bodily function) has not changed.
Why the Distinction Matters for Your Case
PIP benefits are often just the beginning of a personal injury claim. The real recovery – for pain and suffering, for future medical expenses, for the full impact of serious injuries – comes from the claim against the at-fault driver.
Knowing which PIP rules apply to you affects:
- How much wage loss compensation you can receive through PIP
- How your medical expenses are covered and at what rates
- The overall picture of what your claim is worth and how to approach it
Getting this wrong is costly. Either accepting less than you’re entitled to, or expecting benefits the new law doesn’t actually provide in your situation.
The Bottom Line
HB 627 is good news for people injured in Kentucky going forward – higher wage loss benefits and higher funeral benefits are meaningful improvements. But the transition matters. Which law applies to you is not automatic; it depends on your accident date and your policy renewal date.
If you have questions about your specific situation – which rules apply, what your PIP covers, or whether you have a claim worth pursuing beyond PIP – we offer free consultations for personal injury cases.
Batey Brophy & O’Dea, PLLC 161 St. Matthews Ave., Suite 16 Saint Matthews, KY 40207 (502) 509-9407
How Kentucky’s No-Fault Insurance Works → What to Do After a Car Accident in Louisville → Car Accident Lawyer in Louisville →
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