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Kentucky Supreme Court Sides With Drivers Over Personal Injury Protection (PIP) Dispute
English Lucas Priest and Owsley, LLP
In a major legal victory for Kentucky drivers, the Kentucky Supreme Court has clarified your rights when it comes to auto insurance and medical care after a car accident. The April 24, 2025 decision in Erie Insurance Exchange v. Johnson could reshape how insurance companies handle Personal Injury Protection (PIP) benefits—and it’s a win for your choice as to how medical bills get paid.
Two insured individuals, Megan Johnson and Terri Reed, were injured in car accidents and wanted their insurance company, Erie Insurance, to pay their chiropractor bills first—before other medical providers. Erie Insurance refused, arguing that the law didn’t require them to follow the insureds’ preferences. So Johnson and Reed took legal action. They not only demanded that Erie pay the chiropractor directly, but also sought interest and attorney’s fees for the delay.
The trial court ruled in favor of Johnson and Reed. Erie Insurance had to pay the chiropractor directly and cover interest and attorney’s fees. Erie appealed this ruling to the Kentucky Court of Appeals. The Court of Appeals agreed with the trial court, affirming that insured individuals can direct how their PIP benefits are distributed within the “medical expense” category. Erie again appealed to the Kentucky Supreme Court. The Supreme Court delivered a mixed bag of rulings. The Supreme Court agreed with the lower Courts that insured individuals have the right to choose which medical provider gets paid first. The Supreme Court disagreed with the lower Courts and overturned the award of interest and attorney’s fees, saying Erie’s refusal wasn’t malicious or unreasonable.
This case is a big deal for anyone with auto insurance in Kentucky. It confirms that you have the right to control how your PIP benefits are used, especially when it comes to choosing which medical provider gets paid first. That means if you prefer chiropractic care or another specific treatment, your insurer must honor that preference.
Here are the key takeaways from this case:
- You have the right to direct your PIP benefits to the provider of your choice within the medical expense category.
- Insurance companies must follow your instructions, even if they disagree with your choice of provider.
- Interest and attorney’s fees aren’t guaranteed—they depend on whether the insurer acted maliciously or unreasonably.
What Should You Do After an Accident?
If you’re injured in a car accident, don’t sign anything from an insurance company—yours or the other party’s—without speaking to a lawyer. You could be signing away rights you didn’t even know you had.
An experienced attorney can help you:
- Understand your rights under Kentucky’s Motor Vehicle Reparations Act (MVRA)
- Ensure your medical providers are paid according to your preferences
- Fight for full compensation, including interest and legal fees if applicable
If you or a loved one has been injured as a result of someone else’s negligence, contact our firm for a consultation. Kyle can be reached at kroby@elpolaw.com or by calling 270-781-6500.
About English, Lucas, Priest & Owsley, LLP
Founded in Bowling Green, Kentucky in 1973, ELPO Law is a full-service law firm committed to providing exceptional legal representation across a wide range of practice areas. With a legacy of advocacy and a deep commitment to justice, ELPO Law continues to serve individuals, families, and businesses throughout Kentucky and beyond.
