Kentucky No-Fault Benefits: What the $10,000 Limit Covers and Leaves Out

By the FigureMyTax Editorial Team · How we calculate

Kentucky basic reparation benefits reimburse net economic loss from a motor vehicle accident up to $10,000 per person per accident, without regard to fault. They cover medical expense, work loss and replacement services, with work loss and replacement services limited to $500 a week for benefits issued or renewed on or after July 15, 2026.

The $10,000 limit

KRS 304.39-020(2) defines basic reparation benefits as benefits reimbursing net loss suffered through injury arising out of the operation, maintenance or use of a motor vehicle. The maximum for all economic loss to one person in one accident is $10,000, regardless of how many people are entitled or how many insurers are obligated.

What counts as loss

Loss means accrued economic loss consisting only of medical expense, work loss, replacement services loss and, if the injury causes death, survivor's economic loss and survivor's replacement services loss. Medical expense is reasonable charges for reasonably needed products, services and accommodations, including medical care, physical rehabilitation, rehabilitative occupational training and licensed ambulance services, and includes a total charge of not more than $5,000 for funeral, cremation and burial for benefits issued or renewed on or after July 15, 2026 (the earlier figure was $1,000). Work loss is lost income from work you would probably have performed, plus expenses reasonably incurred to obtain services in lieu of those you would have performed for income, less income from substitute work. Replacement services loss is expenses to obtain ordinary and necessary services you would have performed for yourself or your family.

The weekly limit

Section 304.39-130 says basic reparation benefits for work loss, replacement services loss and the survivor equivalents may not exceed $500 a week, prorated for a shorter period, and adjusted for seasonal or irregular work. A trade summary of Department of Insurance Bulletin 2026-04 says the limit was $200 before House Bill 627 took effect on July 15, 2026, and applies to benefits issued or renewed on or after that date; we did not read the earlier statutory text.

Net loss and taxes

Section 304.39-120 subtracts workers' compensation benefits in calculating net loss, and subtracts the income tax saving on non-taxable loss-of-income benefits, up to 15 percent of the loss of income unless you prove a lower value. The calculator therefore pays 85 percent of lost income.

Optional coverage

Section 304.39-140 requires insurers to provide added reparation benefits on request in units of $10,000 per person, up to the lesser of $40,000 or your liability limit above the minimum, and to offer deductibles of $250, $500 and $1,000 from basic benefits.

Using the calculator

A worked example: with $8,000 of medical expense and $800 a week of lost income for four weeks, the weekly benefit is $680 (85 percent), for $2,720, and the total of $10,720 is capped at $10,000. Run your own numbers in the Kentucky no-fault calculator, then read the tort threshold and the deadlines. If the other driver has little insurance, see Kentucky UM/UIM stacking.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Kentucky's rules apply to your specific case with a licensed Kentucky attorney.