Kentucky is what we call a no-fault state. This does not mean that nobody was at fault in an accident; however, it does mean that your insurance is required to pay the first $10,000.00 of medical bills and/or lost wages. This seems counter-intuitive, particularly if another driver is at fault in an accident. The $10,000.00 of no-fault/personal injury protection (PIP)/basic reparation benefits (these terms are interchangeable) come from your insurance; however, your insurance seeks to recover paid PIP benefits at the end of the claim from the at fault driver's insurance. In other words, the idea is that your insurance company gets reimbursed at the end of a claim. Generally, your insurance company takes this recovery initiative on their own for accidents in which you were not at fault. Kentucky being a no fault state and requiring your insurance to pay the first $10,000.00 of medical and lost wages is actually very advantageous. It allows you to receive medical treatment, while not digging yourself into tremendous debt. As a side note, you are eligible to purchase additional personal injury protection through your insurance. I highly recommend talking to your insurance agent about purchasing personal injury protection/no fault/basic reparation benefits. Although you likely have $10,000.00 in coverage, and $10,000.00 sounds like plenty, that money will disappear quickly.