Kentucky Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Kentucky?

• In order to operate a motor vehicle in the state of Kentucky, you must carry minimum liability insurance coverage. The following minimum liability insurance amounts apply to all Kentucky drivers: $25,000 for bodily injury per person per in an accident, $50,000 for all bodily injuries per accident, and $10,000 for property damage per accident.
• In the state of Kentucky, drivers can opt for the “single limit plan” that covers liability of $60,000.
• You must show proof of coverage each time your vehicle registration is due for renewal. Your auto insurance card must be carried in your vehicle at all times. If you fail to produce your insurance card on request, you will be fined and you risk losing your drivers license and plates.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in the state of Kentucky, your policy must include minimum liability coverage of:

$25,000 for bodily injury per person per in an accident,
$50,000 for all bodily injuries per accident,
and
$10,000 for property damage per accident

What are the Rental Car Insurance Requirements?

In the state of Kentucky it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by Kentucky law. It is important to keep in mind that most Kentucky auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you may purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not mandatory in the state of Kentucky. Drivers have the right to waive this coverage, but it is highly recommended that you carry it.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Kentucky, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance carefully before you sign on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If your insurance lapses, this means you are not covered. Auto insurance in the state of Kentucky does not offer a grace period for making premium payments. If the premium is not paid on time, the coverage will end. If you are caught driving without insurance, you will be fined and you risk losing your drivers license and plates.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Kansas, insurance companies can use your credit history to determine rates and offers for products. Auto insurance companies do not use Personal Credit History alone to figure rates. They also consider age, gender, where you live, car make and model, how much you drive, and prior insurance coverage.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Kentucky follows a Choice No Fault system. This means, drivers may reject the No Fault system options and retain the right to sue (Tort system) for any auto-related injury. This also means that Kentucky drivers have the choice to purchase Personal Injury Protection (PIP) with a $10,000 limit based on the No Fault system or Tort system.

What is the average auto insurance premium in this state? As of what year?

As of 2006, Kentucky resident’s average insurance premium was approximately $739, the 28th most expensive in the nation. This was down 1.5% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Kentucky Department of Insurance