Orlando Harmon
Kansas requires all residents to carry auto insurance with liability and uninsured motorist coverage. This means that you need to have bodily injury, property damage, personal injury protection, and uninsured/underinsured motorist coverage. You need to have proof of insurance when driving and must show it to law enforcement officials when asked. Self-insurance is allowed in Kansas if you have more than 25 cars registered under your name and can prove that you are able to pay and provide liability coverage.
| Characteristics | Values |
|---|---|
| States where self-insurance is allowed | California, Connecticut, Florida, Georgia, Hawaii, Indiana, Maryland, New Mexico, North Dakota, Pennsylvania, Vermont |
| Number of vehicles required for self-insurance | 25 or more |
| Amount of money required to cover losses | $40,000 to $60,000 |
| Proof of insurance required in Kansas | Insurance card, policy of insurance, binder of insurance, Motor Carrier ID number, certificate of self-insurance, fleet insurance card, dealership contract and copy of motor vehicle liability insurance policy |
What You'll Learn
Kansas auto insurance requirements
In Kansas, car insurance is mandatory for all drivers. The state has provisions for liability coverage, personal injury protection (PIP), and uninsured or underinsured motorist coverage.
Kansas requires all residents to carry auto insurance with liability and uninsured motorist coverage. It is a no-fault state, which means that your auto insurer will pay for first-party benefits, such as medical costs for injuries from an accident, regardless of fault.
The minimum requirements for car insurance in Kansas are:
- Bodily injury liability coverage: $25,000 per person and $50,000 per accident
- Property damage liability coverage: $25,000
- Uninsured motorist bodily injury coverage: $25,000 per person and $50,000 per accident
- Basic personal injury protection coverage: $4,500 per person
Personal injury protection (PIP) is sometimes called no-fault insurance. It covers your medical expenses and other related costs. In Kansas, your minimum PIP must include:
- $4,500 per person for medical expenses
- $900 per month for one year for disability/loss of income
- $25 per day for in-home services
- $2,000 for funeral, burial or cremation expenses
- $4,500 for rehabilitation expenses
Survivor benefits include:
- Disability/loss of income up to $900 per month for one year
- In-home services up to $25 per day for one year
Kansas motorists can also purchase additional PIP coverage, which increases the coverage amounts of certain no-fault benefits.
Proof of insurance is required when a vehicle registration (license plate) is issued or renewed. This can be the original or a copy of the insurance coverage and must include the name of the insurance company, the policy number, the name of the owner, the effective and expiration dates of the coverage, the year, make and VIN for the vehicle.
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Proving financial responsibility
In Kansas, you are required to carry auto insurance with liability and uninsured motorist coverage. This is to prove financial responsibility, which refers to the money you are responsible for paying to someone when you cause damage or injury in an accident.
There are several ways to prove financial responsibility in Kansas. The most common way is through car insurance. In Kansas, you are required to have auto insurance that includes liability and uninsured motorist coverage. Liability insurance covers bodily injury and property damage. This means that if you are at fault for an accident, your insurance will cover the other person's medical expenses, lost wages, and property damage. Uninsured motorist coverage will provide coverage for expenses associated with bodily injury caused by an uninsured or under-insured motorist.
Kansas is a no-fault state, which means that your auto insurer will pay for first-party benefits, such as your medical costs for injuries from an accident, regardless of fault. In addition to liability and uninsured motorist coverage, Kansas requires personal injury protection (PIP) as part of your car insurance. PIP provides medical treatment coverage and post-accident benefits, regardless of who is at fault in an accident. PIP benefits in Kansas include medical benefits, rehabilitation benefits, loss of income or disability benefits, substitution benefits, funeral benefits, and survivors benefits.
If you do not want to purchase car insurance, there are alternative ways to prove financial responsibility in Kansas. You can apply to the Kansas Insurance Department for a self-insurance certificate, but you must meet certain qualifications. To be eligible for self-insurance in Kansas, you must have more than 25 cars registered under your name and provide documentation proving that you are able to pay and provide liability coverage in the same amounts as a minimum insurance policy for each vehicle.
Other ways to prove financial responsibility without car insurance include posting a surety bond with your state, keeping a cash deposit with your state, or filing a government bond with your state. These options may vary by state, so it is important to consult your state's DMV or insurance department for specific requirements.
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Self-insurance vs. driving without insurance
Self-insurance is a way to cover your financial liability by putting aside savings to pay for any bodily injuries or property damage you may cause in an accident. This is instead of purchasing a traditional car insurance policy. However, self-insurance is not the same as having no insurance.
Self-insurance is only a viable option if you can cover your state's liability limits yourself. It is also not a good idea if you are having trouble making your insurance payments. In this case, it is better to purchase a traditional insurance policy from a cheap insurance provider with minimum limits.
If you choose to self-insure, you must go through the proper protocols with your state's DMV, if it allows self-insurance at all. Not all states permit self-insurance, and some only allow it if you own a fleet of vehicles. Kansas, for example, requires drivers to maintain a minimum level of car insurance coverage to legally drive in the state.
The legal repercussions and penalties for driving without insurance can be severe and vary by state. They may include suspension of your driver's license, registration, and vehicle plate numbers, as well as community service hours.
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Self-insurance eligibility
To be eligible for self-insurance in Kansas, you must meet certain requirements. These requirements differ depending on the type of insurance you are seeking.
Self-Insurance for Vehicles
To self-insure your vehicle in Kansas, you must meet the following qualifications:
- Have more than 25 cars registered under your name
- Provide documents as requested by the insurance commissioner to prove you are able to pay and provide liability coverage in the same amounts as a minimum insurance policy for each vehicle covered under your self-insurance
Self-Insurance for Health Care Providers
To be eligible for self-insurance as a health care provider in Kansas, you must meet the eligibility criteria prescribed in K.S.A. 40-3414 and amendments thereto. The process to become a self-insured health care provider includes the following steps:
- Submit a letter of intent to the HCSF Board of Governors at least six months before the desired date to become self-insured. This letter must be signed by the relevant authority, depending on whether the health care provider is an individual, partnership, medical facility, corporation, or limited liability company.
- Within 60 days of the letter of intent, submit the following information to the HCSF Board of Governors:
- A copy of the health care provider's most recent audited financial statement
- A description of the health care provider's financial condition, including any material changes since the last audited financial statement
- A copy of the meeting minutes or a resolution from the governing authority approving the creation of a separate segregated fund for payment of claims
- A statement of liquid assets reserved for settling claims or paying judgments
- A description of the procedures to be followed when a claim is filed, including reporting methods, responsible individuals, and investigation and evaluation methods
- Within 90 days of the letter of intent, submit the following additional information to the HCSF Board of Governors:
- A history of claims for the previous five years, identifying paid losses for closed claims and loss reserves for open claims
- An independent actuary's report indicating recommended reserves for self-insurance, including reserves for prior acts
- A copy of the liability insurance policy or declarations page providing coverage for employees who are not health care providers, or an explanation of separate self-insured coverage
Self-Insurance for Workers' Compensation
The State Self Insurance Fund (SSIF) is the workers' compensation program for state employees who are injured on the job in Kansas.
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Self-insurance risks
Self-insurance is an appealing option for many, as it offers greater control over coverage, tailored policies, and potential savings on premiums. However, there are several risks associated with self-insurance that should be carefully considered.
Financial Risk
The most significant drawback of self-insurance is the financial risk involved. In the event of a major loss or liability, self-insured individuals or entities bear the full cost, which can be financially devastating if the funds set aside are insufficient. Unlike traditional insurance, self-insurance lacks a safety net, as the risk is not transferred to a third party. This makes self-insurance a risky proposition for those without substantial savings or resources.
Lack of Risk Pooling and Spreading
Insurance operates on the principle of risk pooling, where policyholders' premiums collectively fund the claims of those who experience losses. This mechanism reduces the financial burden on individuals and ensures that resources are available when needed. Self-insurance lacks this benefit, leaving individuals or entities vulnerable to catastrophic events that could deplete their resources.
Limited Coverage
Self-insurance often provides limited coverage compared to traditional insurance policies. It may not offer comprehensive protection for a wide range of risks, including property damage, liability claims, and medical expenses. Individuals may overlook or underestimate certain risks, leaving them exposed to unexpected expenses that they may struggle to manage.
Administrative Burden
Self-insurance requires expertise in managing retained risks, including policy wording, risk management, claims handling, and financial management. This can be a significant administrative burden, especially for small organizations or individuals who may not have the necessary resources or expertise.
Unpredictability of Losses
Self-insurance is subject to the risk of unforeseen losses or unexpected events. Organizations or individuals who self-insure are responsible for covering the full cost of retained losses, which can be challenging to predict or plan for. This unpredictability highlights the potential financial risks and the importance of carefully evaluating the ability to cover unforeseen losses.
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Frequently asked questions
Self-insured car insurance means that you act as your own insurer. Instead of paying a car insurance company, you have your own insurance account set aside with enough money to cover potential losses.
Self-insuring can save you money on your insurance premium and could pay off if you never have an accident because all that money stays in your pocket.
Self-insuring can be a gamble since you're essentially shouldering the risk yourself instead of transferring it to the insurance company. Car accidents can be expensive, especially given the high-tech features that are common on many vehicles, not to mention any associated medical costs if you're responsible for injuring someone in an accident.
To get a certificate of self-insurance, drivers are required to prove financial responsibility. That means showing you have the money needed to cover a loss, usually in the form of a security bond or cash deposit.
Kansas requires all its residents to carry auto insurance with liability and uninsured motorist coverage. To drive in the state, you need several coverages on your policy, including bodily injury, property damage, personal injury protection, and uninsured/underinsured motorist coverage.
