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What Is the Minimum Car Insurance Requirement in Kentucky?

To legally drive a car, nearly every state in the United States requires motorists to have some level of car insurance coverage. One of the first questions that arise when looking for car insurance is how much car insurance you need to drive in the state legally. Kentucky requires all drivers to have at least the following insurance coverages:

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $25,000 per accident for property damage
  • $10,000 personal injury protection per accident

You can increase these insurance limits as desired. For example, assume the average cost of a car damaged in an accident caused by you is more than $25,000. In that case, the minimum property damage limits will be insufficient and you’ll end up paying more out-of-pocket expenses to compensate the other party. Therefore, having extended coverage limits is always encouraged to help you cover these unanticipated expenses.

Instead of these limits, policyholders can meet the requirement by purchasing single limit insurance with a combined limit of $60,000.

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What Does This Minimum Coverage Mean?

Liability and personal injury protection (PIP) coverage in your car insurance are required by Kentucky law. If you cause an accident, liability coverage compensates for the costs of injuries and property damage to another driver, their passengers and their property. Personal injury protection, or PIP, in your insurance policy covers medical expenses incurred to you and your passengers regardless of who is at fault for the accident.

Drivers in Kentucky are required to have a minimum bodily injury and property damage liability coverage of 25/50/25. This means that your insurance policy must include $25,000 in bodily injury coverage per person, $50,000 in total for all injured parties in the accident and $25,000 in property damage coverage per person. In addition, the state also requires that your insurance policy include a minimum of $10,000 in personal injury protection coverage per accident.

Keep in mind that these values only represent the minimum necessary coverage required. That is, these are by far the maximum compensation your insurance will pay in the event of a claim settlement. You can increase the limits as needed. These basic coverages, however, do not protect your vehicle. You must get collision coverage to protect your car, regardless of who is to blame for the accident.

How Much Does the Minimum Car Insurance Cost in Kentucky?

Your insurance rates in Kentucky can be impacted by various factors, including your age, ZIP code, driving history, credit score, vehicle make and model. Furthermore, rates differ across the many vehicle insurance companies in the state.

Taking average rates into account, USAA offers roughly $369 per year for Kentucky's cheapest auto insurance plan. However, USAA insurance plans are only available to active and veteran military personnel and their families. As a result, State Farm's annual cost of $428 is the cheapest widely available insurance for Kentucky drivers.

These prices are only estimates based on rates for an average Kentucky driver and should not be used to compare insurance prices.

To find relevant policies, MoneyGeek compared rates for a 40-year-old male driver from Kentucky driving a 2010 Toyota Camry with a clean driving record and a good credit score. The insurance plan considered has state minimum liability limits of 25/50/25 and the requisite PIP limit of $10,000.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Kentucky.

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What Is the Minimum Car Insurance Requirement in Kentucky While Leasing a Car?

You may use a leased car for various reasons, including the opportunity to drive a different car every few years. However, you should be aware that the minimum coverage requirements for leased vehicles may differ from those required by the state. The leasing companies expect you to return the car in the same condition that you received it. As a result, you should maintain enough insurance coverage throughout the term of the lease. Before leasing an automobile in Kentucky, most lessors need you to have full coverage car insurance with a minimum liability limit of 100/300/50. Again, the standards differ depending on the lease company.

If you have already leased a car in Kentucky, contact your leasing company for information on their minimum insurance coverage requirements. Furthermore, if you are new to leasing, you should study their leasing terms, including Kentucky car lease insurance requirements, before selecting a car or leasing company.

Around 13.9% of Kentucky's drivers are considered uninsured drivers. Despite this significantly low rate, MoneyGeek recommends purchasing a full coverage auto insurance policy in the state to protect you from personal injury and vehicle damage if an uninsured driver hits you. A full coverage insurance policy combines liability coverage, collision coverage and comprehensive insurance. If you're not sure how much auto insurance coverage you need in Kentucky, we propose a 50/100/50 liability limit.

Penalties for Driving Without Car Insurance in Kentucky

Kentucky's car insurance laws make it illegal to drive an uninsured vehicle or drive without the state-mandated minimum insurance. Driving without active car insurance that meets the state's minimum coverage requirements might result in fines and/or imprisonment. In addition, repeated offenders or those involved in an accident without valid car insurance in the state may face hefty fines and penalties, including license suspension, revocation of vehicle registration and imprisonment.

If you are driving without insurance in Kentucky, there are two methods for the state to find out. First, you may be pulled over by a police officer and asked to show proof of insurance. If you are caught driving without insurance for the first time and cannot present evidence of insurance, you may face a fine of $500 to $1000 and/or up to 90 years in jail. Until you provide proof of active insurance meeting Kentucky’s minimum car insurance requirements, your driving privileges may remain suspended as well. No car insurance penalties in Kentucky are higher for subsequent offenses. You’ll be charged with hefty fines and more days in jail. In addition, your vehicle registration can remain suspended for between one year or more.

Secondly, an insurance lapse will notify the Kentucky Transportation Cabinet, who will then hunt the records to find insurance matching the registered vehicle. If no insurance is found in 30 days, you’ll be notified of the same. If you’re getting into an accident without valid insurance, you’ll have to bear the expenses incurred to you and the other party’s injuries and damages.

If you are found guilty of any traffic infraction while driving without vehicle insurance, the following penalties apply in Kentucky:

  • Fine between $500 and $1,000; imprisonment up to ninety days; suspension of driving license and car registration for up to one year for first-time offenders.
  • Fine between $1,000 and $2,500; imprisonment of up to six months; suspension of driving license and car registration for one or more years for second and subsequent offenses.

Unlike other US states, an SR-22 isn’t required in Kentucky to reinstate a driver's license. However, you will have to submit proof of insurance and pay the necessary reinstatement fee and court fines.

Following a conviction for driving without insurance in Kentucky, the reinstatement requirements can be as follows:

  • First offense: $40 reinstatement fee; court fines; proof of insurance.
  • Second offense: $40 reinstatement fee; court fines; proof of insurance; retaking of driving exams if license is suspended for more than one year.

Frequently Asked Questions About Car Insurance in Kentucky

Car insurance is required in Kentucky, and all drivers must have the state-mandated minimum liability coverage of 25/50/25 and personal injury protection (PIP) coverage of $10,000 per accident. Kentucky's motorists who drive without car insurance or fail to present proof of valid insurance may face fines and penalties like revocation of driving privileges, cancellation of vehicle registration and/or imprisonment.

Yes. To register an automobile in Kentucky, you must show proof of current insurance. You will not be able to register your vehicle if you cannot prove that you have a car insurance policy that meets the state-mandated insurance coverages. To operate a car in Kentucky, you must also have active and valid car insurance.

A basic car insurance policy in Kentucky meets the state's minimum car insurance requirements. Kentucky law requires at least 25/50/25 liability coverage, as well as $10,000 PIP coverage for drivers. Driving without insurance can result in hefty fines, imprisonment, suspension or revocation of driving rights and other penalties.

The type of insurance coverage has a significant impact on the answer to this question. A liability insurance policy and personal injury protection coverage, for example, follow the insured, even though the former covers the damages or injuries to other people or property. On the other hand, comprehensive and collision coverages always follow the insured car. This may also be influenced by the insurance company and the terms of the policy. For example, some Kentucky insurers refuse to insure drivers that are not a primary or excluded driver or co-owner of the car.

In Kentucky, you can purchase auto insurance without a driver's license. You must, however, declare yourself as an excluded driver and a licensed driver as the primary driver and co-owner of the vehicle. Remember that your driving record will impact your insurance prices. If you don't have a driving record, you'll be classified as a high-risk driver.

Kentucky is a choice no-fault state, which means the drivers can choose to go with a no-fault system or reject it using a no-fault rejection form submitted at the Kentucky Department of Insurance. This means that you can have personal injury protection, which is a first-party benefit, to cover your injuries or not have it. This leaves you with the right to file a claim against the other driver involved in the accident. It also exposes you to the risk of being sued if you're at fault for the accident.

Yes. Kentucky is a choice no-fault state. This means that every driver should have an insurance policy covering their injuries, which mandates a PIP coverage. With this PIP coverage, your insurance provider will cover your medical expenses and losses if you are injured in a car accident. Kentucky’s drivers are required to have at least $10,000 per person PIP coverage. If you choose to opt out of the no-fault system, you can do so as mentioned in the previous answer.

Uninsured motorist coverage is not state-mandated for Kentucky car insurance requirements. However, obtaining it is a smart idea for added protection if your car is involved in an accident with an uninsured driver.

The state of Kentucky permits a diminished value claim. In the event of a car accident, you may be entitled to claim the reduced value of your car, as long as you're not the at-fault party of the accident. For example, you might claim a difference in value from the at-fault driver's insurance provider in Kentucky. You cannot, however, claim if the at-fault party is not insured. Claims should be lodged within five years after the date of the accident.

Your car insurance prices may skyrocket after a DUI in Kentucky, and your license and driving rights may be revoked. However, because insurers quote differently for a driver with DUI violation, you can get a reasonable policy if you spend some time comparing quotes from several insurers.

A CARCO inspection is your car's complimentary image assessment to capture your vehicle’s current condition accurately. It comprises information, such as the mileage, physical condition of the car, installed options and accessories. The examination reduces the cost of insurance protection for property damages. This evaluation lasts approximately 15 minutes. Kentucky is nevertheless not one of the states mandating inspections of CARCO.

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About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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