Liability Auto Insurance Coverage In Kentucky: What's Protected?

Kentucky requires all drivers to carry car insurance and purchase coverage before registering their vehicle. The minimum amount of Kentucky auto insurance coverage is $25,000 per person/$50,000 per accident/$10,000 for damage to another person's property, with added PIP (Personal Injury Protection) of $10,000 per person. Kentucky is a no-fault state, which means that your insurance company will pay for your injury claims up to a specified limit, regardless of who caused the accident. Liability insurance in Kentucky covers others' injuries, property damage, and legal expenses for accident-related lawsuits if you are at fault in an accident, up to your policy limits.

Bodily injury liability

In Kentucky, motorists are required to carry bodily injury liability insurance as part of their auto insurance coverage. This type of insurance provides financial protection if you are found legally responsible for a covered accident that results in bodily harm to another person. Here is what you need to know about bodily injury liability insurance in Kentucky:

Minimum Requirements:

The Kentucky Motor Vehicle Reparations Act mandates that motorists carry bodily injury liability insurance with minimum coverage of $25,000 per person and $50,000 per accident. These minimums are known as the "limits" of your policy. This means that your insurance will cover up to $25,000 of bodily injury expenses for each person injured in an accident, and the total coverage for all injured persons cannot exceed $50,000.

What it Covers:

No-Fault State:

It is important to note that Kentucky is a no-fault state when it comes to auto insurance. This means that regardless of who is at fault in an accident, each driver files a claim with their own insurance policy to cover their medical expenses and other related benefits. In a no-fault state, your right to sue the negligent driver may be limited, unless certain thresholds are met, such as significant medical expenses or permanent injuries.

Optional Higher Limits:

While the minimum requirements for bodily injury liability insurance in Kentucky are $25,000 per person and $50,000 per accident, higher limits are available and vary by insurer. You can choose to increase your coverage limits for added protection. This is especially important if you want to ensure you have sufficient coverage in the event of a serious accident with multiple injured parties.

Verification of Insurance:

In Kentucky, your insurance status will be verified when you register or renew your vehicle registration with the Kentucky Transportation Cabinet (KYTC). They will check your insurance information through the Kentucky Insurance System online. When driving, you are required to have either a paper copy or an electronic image of your insurance ID card to show proof of insurance if you are pulled over.

Property damage liability

The cost of liability car insurance in Kentucky is higher than the national average, with an average annual cost of $804. However, rates vary based on age, driving history, ZIP code, insurance company, and the purchase of higher limits for added protection.

While liability insurance is essential, it does not cover damage to your vehicle or your own injuries. Therefore, many Kentucky drivers opt for additional coverage, such as collision and comprehensive insurance, to protect themselves and their vehicles.

Personal injury protection (PIP)

In Kentucky, personal injury protection (PIP) insurance provides coverage if you are involved in a motor vehicle accident. As Kentucky is a no-fault state, PIP insurance covers medical expenses, lost wages, and other costs related to injuries sustained in an accident, regardless of which party was at fault.

The minimum amount of PIP insurance required in Kentucky is $10,000, and it is mandatory for all drivers except motorcyclists. This minimum level of PIP insurance covers up to $10,000 of medical expenses per person in an accident, 85% of lost wages due to injury (up to $200 per week), and other related costs, such as in-home health services. You can also choose to purchase higher levels of coverage, up to $50,000 from your insurer.

PIP insurance in Kentucky does not always include a deductible. However, you can choose to add a deductible to your policy, with typical amounts ranging from $250 to $1,000. Adding a deductible to your PIP insurance will lower your premiums, but you will need to pay this amount out of pocket before your insurance coverage kicks in.

It is important to note that you have the option to reject PIP coverage by submitting a form to the state. However, rejecting PIP coverage will result in an increase in your liability insurance premiums, as you will no longer have the protection offered by PIP in the event of an accident.

If you are involved in an accident, the process for filing a PIP claim depends on your role in the incident. If you are a passenger or a non-owner driver, you would typically file a claim with the insurer of the vehicle you were in. If you are the owner of the vehicle, you would file a claim with your own insurer. In the case of an uninsured vehicle, you would need to file a claim with the other driver's insurer or your own insurer if you have coverage.

Collision coverage

When purchasing collision coverage, you can choose a deductible amount that suits your financial situation. A higher deductible will result in a lower premium, but you will have to pay more out of pocket if an accident occurs. It's important to select a deductible that won't cause financial strain.

While collision coverage is optional, it is a valuable addition to your insurance policy if you want the peace of mind of knowing that you are protected in the event of a collision. It ensures that you won't have to bear the full financial burden of repairing your vehicle after an accident.

Additionally, collision coverage can be bundled with comprehensive coverage, which covers non-accident incidents like fire, water damage, or vandalism. Together, these coverages provide what is known as full coverage car insurance. This type of insurance offers more comprehensive protection for your vehicle, giving you added security on the road.

Uninsured/underinsured motorist coverage

In Kentucky, uninsured/underinsured motorist coverage is not mandatory, but it is a good idea to have it. This type of insurance covers you in the event of an accident where the other driver is at fault and doesn't have insurance or doesn't have enough insurance to cover the damages.

Uninsured motorist coverage will protect you if you are injured by a driver who does not have auto liability insurance. Unfortunately, thousands of people drive without insurance, and if you are in an accident with one of these drivers, you may not be able to seek insurance compensation from them. In this case, you would need to file a claim against your own uninsured motorist policy and seek compensation from your own insurance company. This coverage also protects you if you are hit by a driver who flees the scene and cannot be identified.

Underinsured motorist coverage comes into play when the at-fault driver's insurance policy limits are too low to cover the full extent of the damages. For example, if the other driver only has the minimum required coverage in Kentucky of $25,000 per person/$50,000 per accident in bodily injury coverage, and your damages exceed those limits, you can turn to your underinsured motorist coverage to make up the difference.

Frequently asked questions