Kentucky Injury Resource Center
Reviewed by Larry Forman, Attorney.
A denial letter is not always the end of the road. Insurers deny claims for many reasons, some legitimate and some not. What to do next depends on which claim was denied: your own PIP, the at-fault driver’s liability coverage, your uninsured or underinsured motorist coverage, or property damage.
Key takeaways
PIP benefits are generally overdue if not paid within 30 days after the insurer receives reasonable proof of the loss. Overdue payments bear interest at 12% a year, or 18% if the delay was without reasonable foundation (KRS 304.39-210). A court may also award attorney’s fees when a denial or delay was without reasonable foundation (KRS 304.39-220).
See how to direct PIP benefits and who pays medical bills after a crash.
The other driver’s insurer doesn’t owe you a contract duty, but Kentucky law still prohibits unfair practices such as refusing to pay without a reasonable investigation or failing to settle promptly when liability is reasonably clear (KRS 304.12-230). The usual answer to a liability denial is better evidence and, when needed, a lawsuit. See demand letters.
Your own insurer owes you good faith on uninsured and underinsured motorist claims. See uninsured motorist claims, underinsured motorist claims and our insurance bad faith lawyer page.
Most Kentucky motor vehicle injury claims must be filed within two years of the crash or the last PIP payment, whichever is later (KRS 304.39-230). A denial doesn’t pause the deadline. Use our statute of limitations calculator.
There’s no formal court-style appeal, but you can ask the insurer to reconsider with more evidence, file a Department of Insurance complaint, or file suit before the deadline.
Late PIP payments can carry 12% or 18% interest, and a court can award attorney’s fees if the denial had no reasonable foundation.
Not always. Bad faith generally requires an unreasonable denial or delay. See our insurance bad faith page.
Send us the letter. We’ll tell you what it means and what to do next. The consultation is free.
Get a free case evaluation or call 502-931-6788.
This page is general information about Kentucky law as of October 2026, not legal advice. Every case is different.
