Can you explain why or when you would purchase Guest PIP in Kentucky?

is a type of coverage that must be purchased if basic PIP has been rejected by the insureds listed on a policy. Kentucky is a "choice no-fault" state meaning that a motorist can choose to insure their vehicle under the tort system or the no fault system.

As explained by a representative of the Kentucky Department of Insurance, in Kentucky when you purchase auto liability coverage you also purchase PIP coverage for you, your family and guest passengers (choose the no-fault system).

In Kentucky however, you are allowed to reject PIP for you and your dependents (under the age of majority) but not a spouse. Your spouse can reject as well but he/she must sign the rejection form. This means that you, your spouse and your household are choosing the tort system.

Under Kentucky law, the policyholder cannot reject PIP coverage for any guest passenger, thus Guest PIP is required to be carried. This coverage entitles the guest passenger to at least $10,000 of medical expenses, lost wages and similar "out-of-pocket" costs if injured while riding in the covered vehicle.

So if you choose a tort system each driver involved in an accident is responsible for the property damage and/or bodily injury they caused. Also with a KY tort system you retain the right to sue the other driver in an accident for the cost of expenses related to injuries sustained in the accident.

Under the KY no-fault insurance system, you are required to purchase personal injury protection (PIP) coverage that helps pay the cost of injuries regardless of who was at fault in the accident. A PIP policy in Kentucky covers medical expenses, lost wages, substitute (replacement) serves and funeral expenses. Total payments covered by PIP are limited to $10,000 per person, per incident. When you purchase PIP coverage, you will need to select a deductible amount.

When you purchase basic PIP you can also buy additional personal injury protection. With additional PIP you would be provided with additional coverage in increments of $10,000 for policies that carry personal injury protection.

When buying the basic PIP coverage in Kentucky you give up your right to sue the other driver in an accident for the cost of injuries, unless the cost exceeds a certain level set by the state. Kentucky insurance companies will allow you to buy back that right (even though you carry PIP) for an increase in your premium.

Guest personal injury protection is required when all drivers / insured on your policy reject no-fault coverage. When you and the other drivers on your policy have selected the tort system instead of the no-fault system for their auto insurance policy in Kentucky then the state requires Guest PIP must be purchased to cover guest passengers that may travel with you in your vehicle.

Guests are usually defined as those in your vehicle that are not immediate family members. Additional PIP is not normally afforded to a policy that includes Guest PIP coverage only.