Auto Insurance Requirements in Kentucky
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The Kentucky Motor Vehicle Reparations Act requires that motorists carry bodily injury and property damage liability insurance, as well as no-fault personal injury protection (PIP), before registering vehicles or driving on the road. Coverage amounts must be no less than $25,000 per person/$50,000 per accident (bodily injury), $25,000 per accident (property damage) and $10,000 (PIP).
Contents
Kentucky required car insurance coverage
Required Min. Limits | |
|---|---|
| $25,000 per person/$50,000 per accident | |
| Property damage (PD) | $25,000 per accident |
| Personal injury protection (PIP) | $10,000 per accident |
There are two occasions when your insurance status will be verified in the Bluegrass State. First is when you are registering or renewing your vehicle registration with the Kentucky Transportation Cabinet (KYTC), which will be checking your insurance through the Kentucky Insurance System online (so make sure your insurer has updated your information). Second is when you are pulled over on the road, in which case either a paper copy or electronic image of your insurance ID card will suffice.
Kentucky car insurance minimum requirements
Your Kentucky insurance policy must at least contain liability insurance and no-fault insurance, which are made up of three coverages: bodily injury, property damage and personal injury protection. Here is what that means for Kentuckians.
Bodily injury (BI): $25,000/person, $50,000/accident
Requirements
- $25,000 per injured person
- $50,000 per accident for two or more injured people
Covers
- Your personal assets
- Legal fees if the other party sues you, up to the stated limit
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Does not cover
- Your own medical bills
Property damage (PD): $25,000/accident
Requirement
- $25,000 per accident
- Higher limits are available and vary by insurer
Covers
- Everything from the other driver's car
- Other property that is damaged in the accident (buildings, fences, etc.)
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Personal injury protection (PIP)
Kentucky is a no-fault state, which means that you must file a claim with your own insurance policy (every licensed auto insurance provider is obligated to pay for their policyholders' medical expenses if they're ever injured in a car accident), regardless of fault. Basically, your PIP will cover up to $10,000 per accident of both medical bills and related benefits, such as weekly income loss benefits (up to $200/week) and funeral benefits. When you purchase PIP in Kentucky, there are several decisions to make:
- Deductible: You may choose whether or not you want to select a deductible amount. This is the portion of the bill you have to pay before your PIP kicks in for each accident. The higher your deductible (varies incrementally and differs by insurer), the lower your PIP premium. You should choose an amount that will not put you under financial stress.
- Accept or reject coverage: Kentucky insurance code gives each driver the right to reject basic PIP privilege. By submitting a Kentucky No-Fault Rejection Form with the Kentucky Department of Insurance, you can exclude the coverage, which also lowers your auto insurance rates. However, note that rejecting PIP will lead to an increase in your liability insurance (BI and PD coverage) premiums, so it's best to compare the overall costs and benefits if you're considering this option to save money. Plus, even if all of your household members reject PIP, you will still need to carry guest/pedestrian PIP (with a small premium), which ensures that any non–household member in your car or pedestrian involved in an accident will still have the no-fault protection.
Cheapest companies in Kentucky for minimum liability
Your right to sue
In exchange for no-fault protection, Kentucky motorists are limited in terms of their rights to sue the negligent driver for both economic (medical bills) and noneconomic (pain and suffering) losses stemming from an accident. However, there are exceptions to this limitation. Apart from rejecting your PIP privilege, your right to sue may also be reinstated if your loss in the accident meets the following thresholds:
Quantitative: Your medical expenses for injuries from the accident end up costing more than $1,000.
Qualitative: Injuries of anyone in your party result in the fracture of a weight-bearing bone, permanent disfigurement, permanent injury, permanent loss of one or more bodily functions or death.
Alternative proof of financial responsibility
Purchasing an auto insurance policy best fulfills your financial responsibility as a Kentucky motorist. Nevertheless, you can choose to apply to become a self-insurer with the KYTC. You will receive a certificate of self-insurance when you meet all of the following requirements:
- Submit an application.
- Annually, submit a balance sheet and income statement that reflects your past fiscal year's financial condition. This is to verify that you have — and will continue to have — the ability to pay for any damages resulting from the operation of any of your insured vehicles.
- Submit a list of all of the vehicles you'd be insuring under your self-insurance.
- Place a security deposit, in the form of a surety bond, with the commissioner of insurance. The bond needs to be $50,000 for the first vehicle and $10,000 for each subsequent vehicle, but no more than $200,000 in total. The commissioner may ask you to deposit additional security if they decide that the current deposit is insufficient, judging from the number of claims you have received throughout your self-insured period. (Claims must be submitted to the commissioner of insurance on a quarterly basis.) When you voluntarily withdraw your self-insurance status, the commissioner will return your deposit when they find that all of your judgments have been satisfied.
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