Kentucky Auto Insurance Laws
Here are some Kentucky auto insurance laws that all drivers should be familiar with:
Kentucky is a no-fault state
Kentucky is a no-fault auto insurance state. This means that in the event of an accident resulting in injury, each driver bills the costs to his own insurer. They rely on their Personal Injury Protection (PIP) coverage to help pay those bills.
But Kentucky is a no-fault choice state, which means drivers have the option to opt out of this system. This gives them the right to sue the other driver for compensation without meeting the state’s minimum threshold for a lawsuit under no-fault coverage.
Consequences of driving without insurance in Kentucky
Driving without Kentucky auto insurance can result in the following penalties:
- Cancellation of vehicle registration
- Fines between $500 and $1,000, up to 90 days in jail, or both
Kentucky Minimum Coverage Requirements
Kentucky drivers must have at least the following coverage:
Personal injury liability cover
Drivers must have at least:
- $25,000 bodily injury liability coverage per person
- $50,000 bodily injury liability coverage per accident
Property damage civil liability coverage
Drivers must also have at least $25,000 of property damage liability coverage.
Personal Injury Protection (PIP)
Those who don’t opt out of the state’s no-fault system must also purchase $10,000 Personal Injury Protection (PIP) coverage.
How to Get Cheap Car Insurance in Kentucky
Drivers looking for the cheapest auto insurance in Kentucky should do the following:
- Compare the prices of several companies: Get quotes from at least three or four different companies and compare them. Each insurer rates the risk differently, so they all give unique quotes to the same driver.
- Take advantage of all available discounts: Insurers automatically apply most auto insurance discounts to eligible drivers’ premiums. But there may be opportunities for some drivers to save even more by opting into special programs, like Driver Watch programs.
- Choose a higher deductible: Higher deductibles mean higher additional costs in the event of an accident. But they can reduce monthly premiums.
Other Things to Consider When Finding Car Insurance in Kentucky
Here are a few other things drivers should keep in mind when shopping for auto insurance for Kentucky:
Nearly 14% of Kentucky drivers are uninsured
Nearly 14% of Kentucky drivers do not have car insurance, according to the Insurance Information Institute, despite it being against the law. This is problematic because, if there is a serious accident, the victim can sue the driver at fault, even in a no-fault state like Kentucky. But if the driver at fault has no insurance, the victim may not receive help paying their bills.
Adding coverage for uninsured and underinsured motorists can help drivers avoid this problem. Uninsured motorist coverage kicks in if the policyholder is hit by an uninsured driver. Underinsured motorist coverage can help the policyholder cover the difference if they are hit by a driver without sufficient insurance to cover the full cost of the damage.
State Minimum Coverage Doesn’t Cover Everything
State minimum coverage does not provide protection for the insured’s vehicle. Those who want help repairing their car after an accident will need collision and comprehensive coverage. Collision coverage pays for necessary repairs due to an accident involving one or more cars, while comprehensive coverage covers damage caused by weather, theft, vandalism, collision between animals and vehicles, etc.