Kentucky Car Insurance Guide

If you want to own or operate an automobile in the state of Kentucky, you will have to car insurance. Kentucky is a no-fault state, and requires that you purchase both liability insurance and no-fault insurance. Failure to purchase enough insurance coverage could result in fines, and could also lead to the loss of your license and registration.

Liability Coverage in Kentucky

In Kentucky, you will want to make sure that you have enough liability coverage to meet the minimum requirements. These include:

• $25,000 for bodily injury liability per person, and up to $50,000 in bodily injury coverage per accident. Bodily injury liability will pay for the costs associated with physical injury to passengers or anybody else involved in an accident. It will not cover you or anybody else that is on your insurance policy (if you wish to be covered for that, you need to purchase coverage for personal injury protection). Because a major accident could result in costs that are above this amount, you may wish to obtain more coverage in this area, especially if you have money or assets that someone could obtain in a lawsuit.
• $10,000 for property damage liability. If you hit another vehicle, and cause damage to it, this insurance coverage will pay for damages. Property damage liability insurance also would pay for damages to property that you hit, like a fence or telephone pole. $10,000 is the minimum amount of liability insurance that you must purchase. Since many vehicles are worth more than that, you may wish to get more coverage, in case you get into an accident with a new vehicle and you total the car.

No Fault Coverage

No-fault coverage will provide up to $10,000 in compensation if someone is injured and has medical expenses, loss of wages, or has to have replacement services. This coverage will pay no matter who is at fault for the accident. No-fault coverage limits the right of the driver to sue the person who is at fault in the event of an accident. You can choose to opt to avoid no-fault coverage if you want to maintain your right to sue. If you wish to avoid no-fault insurance, you will need to contact your insurance broker or the Kentucky Office of Insurance.

Necessary Proof of Insurance

The Kentucky Office of Insurance requires that they report motor vehicle insurance electronically. However, they don't have to report when you cancel or fail to renew your insurance. You will still have to carry your insurance card while you operate your vehicle. When you renew your registration or transfer your vehicle, you will also need to provide proof of insurance. You can be fined and have your license revoked if you do not have proof of insurance.

Other Insurance You May Want

Although Kentucky does not require any other type of motor vehicle insurance, you may want to opt for more coverage. If you have an automobile loan, your lender will probably require that you have more insurance. The most common types of optional automobile insurance are collision insurance and comprehensive insurance. Collision coverage will pay for the costs necessary to repair your vehicle in case you get into an accident, or will give you enough money to replace your vehicle if you total it in a collision. It will not pay for the amount you still owe on your loan, that is covered by gap insurance. Comprehensive insurance will cover your vehicle in the event of theft, fire, flooding, or other damage that can happen to your vehicle while you are not driving it. If you have a paid-for vehicle that does not have a lot of value any more, you may not need to have this type of insurance. If your vehicle is newer, you probably will want to get this coverage.