After a fatal crash, families are devastated. After things calm down, they inevitably hear the words “insurance claim.” But after a wrongful death car accident, it is rarely clear which insurance company should pay, whether the at-fault driver has enough coverage, or what happens if the loss exceeds the available policy. Wrongful death claims are complicated and should only be handled by experienced and trusted lawyers.
In Kentucky, a wrongful death claim can help surviving family members pursue accountability after a person dies because of another party’s negligence or wrongful act. It is human nature to want the person responsible for such a loss to pay the maximum possible to those impacted by the wrong.
At McCoy & Sparks, PLLC, we help families in Bardstown and across Central Kentucky recover from the wrongdoers. We understand wrongful death law and what steps to take to get a meaningful recovery. We have handled complicated wrongful death claims for nearly 30 years and are built to help families when they need it the most.
Who Can File a Wrongful Death Claim After a Fatal Car Accident in Kentucky?
In Kentucky, the personal representative of the deceased person’s estate files the wrongful death claim. Surviving family members may receive money from the claim, but they do not have the legal capacity to file on behalf of the Estate – that right is reserved for the personal representative.
Once a recovery is made, and after funeral and burial expenses and legal costs, the remainder of the amount recovered is distributed to the deceased’s family in a specific order:
- If there is a surviving spouse and no children, the spouse receives the recovery;
- If there is a surviving spouse and children, the spouse gets one-half of the recovery and children get the remaining half;
- If there are children and no surviving spouse, the children receive the recovery;
- If there is no surviving spouse or child, the recovery goes to the surviving parent or parents; and
- If there is no surviving spouse, child, or parent, the recovery is distributed pursuant to the estate.
These rules can be emotionally challenging, especially when family relationships are under strain. There are many complicating factors, including whether the death was caused by the accident, and how much of a limited recovery should be allocated to different claims (consortium for example).
Who Pays for a Wrongful Death Settlement or Verdict After a Car Accident?
The at-fault parties are responsible in a wrongful death action. Sometimes that is one party, sometimes it is several. Kentucky law uses “apportionment” to determine fault. For example if a jury decides that driver A is 25% at fault, driver B is 25% at fault, and the defective car (company A) is 50% at fault, then the total damages would be multiplied by that percentage to determine how much each is required to pay. Under this example, if damages were $100,000, then driver A would owe $25,000, driver B would owe $25,000, and company A would owe $50,000.
However, the driver’s auto liability insurance, a commercial or employer policy, or uninsured/underinsured motorist coverage usually makes the settlement or judgment payments for a wrongful death lawsuit.
As noted, more than one person or company can be liable. For example, a fatal crash may involve a distracted or drunk driver, a trucking company, a vehicle owner, or a business whose employee caused the crash.
A wrongful death lawyer identifies all potentially liable parties and available sources of recovery to avoid relying on a single policy when others may apply. It can get complicated quickly and the different defendants will play “blame games” against the other defendants. You need someone on your side that understands what is happening, and knows how to maximize the responsibility of each.
What Is a Wrongful Death Insurance Payout?
A wrongful death insurance payout is the money an insurance company pays to resolve a fatal accident claim. It may come through a settlement or after a lawsuit is filed.
Not every payout comes from a single policy. In serious fatal crash cases, several policies may require review before the family has a full picture of what compensation is realistically available.
What Damages May Be Available in a Kentucky Wrongful Death Car Accident Case?
Damages in a Kentucky wrongful death car accident case may include financial losses, certain family losses, and, in limited cases, punitive damages. The available damages depend on the facts, the insurance coverage, and the specific legal claims involved.
Depending on the case, compensation may include:
- Funeral and burial expenses;
- Medical bills related to the final injury;
- Loss of the deceased person’s ability to earn money;
- Pain and suffering through a related survival claim, when applicable; and
- Punitive damages in limited cases.
Not every category applies in every case. A lawyer can help determine which damages may be available and how to document them properly.
A separate but related claim is “consortium” which is a fancy word for love and affection. Kentucky only allows consortium claims for the following groups: surviving spouses, minor children who lost a parent, parents who lost a minor child.
This limitation creates odd scenarios. For instance, if a father is killed in a wreck, leaving two children, ages 16 and 19, and a surviving spouse, the 16 year old and spouse have loss of consortium claims. The 19 year old has none – even though he/she suffered the same loss. The law needs to be fixed in this regard.
Does Auto Insurance Cover a Wrongful Death Claim in Kentucky?
Auto insurance often covers a wrongful death claim in Kentucky if the insured driver caused the fatal crash. The available wrongful death insurance coverage depends on the policy limits, the type of vehicle involved, and whether other insurance policies apply. Common sources of coverage include:
- Auto liability insurance,
- Commercial auto insurance,
- Employer insurance,
- Uninsured motorist coverage,
- Underinsured motorist coverage, and
- Umbrella or excess coverage.
Before accepting a settlement, families should know whether all available insurance has been identified. A quick offer may not reflect the full coverage picture.
Does Homeowners Insurance Cover Wrongful Death?
In most fatal car accident cases, homeowners’ insurance does not cover vehicular wrongful death. Homeowners’ policies often exclude claims arising from the use of a motor vehicle, though some exceptions apply. After a fatal car crash, the more likely sources are auto liability, commercial coverage, employer coverage, and uninsured or underinsured motorist coverage.
If an insurer denies coverage, do not assume the decision is final. Examine policy language, exclusions, and crash details thoroughly. Talk to an attorney.
What Happens if the At-Fault Driver Does Not Have Enough Insurance?
If the at-fault driver lacks sufficient insurance, the family may need other sources of recovery. Underinsured motorist coverage applies if the driver is insured, but the policy is too small. Uninsured motorist coverage applies if the driver has no insurance.
Other options depend on the facts. A commercial policy may provide coverage if the driver was working, or an employer may share responsibility if the crash occurred during the course of employment.
Families should be cautious with early settlement offers. Once a release is signed, it may be difficult or impossible to pursue additional compensation.
Also, claims can be made for recovery above the limits of coverage. These are difficult because those assets are often minimal or hard to reach, but it is necessary in some cases.
What if the Person Survived for a Time Before Passing Away?
If your loved one survived briefly after the crash, there may be both wrongful death and survival claims. These claims are related but distinct. Wrongful death claims focus on the death and losses from it, while survival claims address harm before death, such as pain and suffering and injury-related losses.
The personal representative can pursue wrongful death and personal injury damages in one case if the injured person later dies from those injuries. Many personal injury claims survive after death.
Can Punitive Damages Increase the Payout?
Punitive damages may be available in limited cases involving willful conduct or gross negligence. They are not automatic, even after a fatal crash. They may become an issue in a crash involving drunk driving, extreme recklessness, or a driver who showed serious disregard for human safety.
A lawyer can evaluate that issue based on evidence, not assumptions.
What Should You Do Before Speaking with the Insurance Company?
Seek legal guidance before giving detailed statements, signing releases, or accepting payment. Insurance adjusters may sound helpful, but their job is to resolve the claim for the insurance company.
Before making decisions, try to:
- Save crash reports, letters, emails, and insurance documents;
- Keep medical bills, funeral bills, and estate-related paperwork;
- Avoid recorded statements until you understand your rights;
- Do not sign a release unless you know which claims it resolves; and
- Ask a lawyer to review available insurance coverage.
These steps can help protect the claim while your family gets clearer answers.
Have Questions Following a Fatal Car Accident?
McCoy & Sparks PLLC offers nearly 80 years of combined experience, local knowledge, and personal attention to serious injury and wrongful death cases. We investigate crashes, identify insurance coverage, communicate with adjusters, engage experts if needed, and guide the personal representative through the claim process.
If your family lost someone in a fatal crash, schedule a free consultation today. As locals to Central Kentucky, we understand how the communities and courts we serve handle cases. We can explain your options, answer your insurance questions, and help you decide what comes next.
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