Kentucky Commercial Auto Insurance Requirements

Most Kentucky business vehicles must carry 25/50/25 liability coverage plus $10,000 in personal injury protection, making it one of the few states where PIP applies to commercial policies by default. Minimums climb based on your vehicle's weight class, the number of passengers you carry for hire, the type of cargo on board and whether any part of your route crosses state lines into federal FMCSA territory.

Learn more about the commercial auto insurance coverage you need for your business in Kentucky, no-fault PIP requirements, weight-based carrier limits and penalties for noncompliance below.

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# Kentucky Commercial Auto Insurance Requirements

Written by Mark Fitzpatrick

Updated: February 20, 2026

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What Commercial Auto Insurance Is Required in Kentucky?

Every registered commercial vehicle in Kentucky must carry liability insurance under KRS 304.39-090, with base minimums set at commercial auto insurance requirements that match the state's personal auto floor:

$25,000 for bodily injury or death of one person per accident
$50,000 for bodily injury or death of two or more people per accident
$25,000 for property damage per accident

Kentucky's 25/50/25 limits cover standard business vehicles making local deliveries, running errands or traveling between job sites. Businesses that transport passengers for hire, haul regulated cargo or operate vehicles over 10,001 pounds GVWR need higher coverage under KRS 281.655 or federal FMCSA rules detailed below.

KENTUCKY IS A CHOICE NO-FAULT STATE

Kentucky's no-fault system enrolls every commercial auto policy in PIP coverage unless the policyholder signs a written rejection. Under PIP, each party's own insurer pays medical expenses and lost wages up to the policy limit regardless of fault. Rejecting PIP only strips coverage from listed drivers and employees. Guest passengers and pedestrians stay covered by law.

Kentucky's intrastate property carrier limits under KRS 281.655 depend on gross vehicle weight, with breakpoints at 10,001 and 18,001 pounds. Any vehicle crossing state lines with cargo falls under federal FMCSA rules instead, regardless of weight.


Under 10,001 lbs	25/50/25 or $60,000 CSL	Local delivery vans, service vehicles, company cars
10,001–18,000 lbs	100/300/50 split limits	Medium-duty box trucks, larger work vehicles
Over 18,000 lbs	100/600/50 split limits	Heavy-duty trucks, large equipment haulers
10,001+ lbs (interstate)	$750,000 CSL	Non-hazmat freight crossing state lines (FMCSA)

Kentucky classifies vehicles by GVWR (gross vehicle weight rating), the maximum operating weight printed on your driver-side door jamb, not the actual weight on a scale. A Ford F-350 with an 11,500-pound GVWR falls into the 10,001-to-18,000 tier even when running empty. These weight-based tiers apply only to intrastate property carriers under KRS 281.655; passenger carriers follow the seating capacity tiers below, and vehicles that never haul cargo for hire stay at 25/50/25.

Kentucky requires higher liability limits for any business that charges passengers for a ride, with KRS 281.655 doubling the requirement at the nine-seat mark. Interstate passenger carriers bypass Kentucky's limits entirely and fall under FMCSA minimums of $1.5 million to $5 million CSL.


8 or fewer	100/300/50 split limits	Taxicabs, small shuttles, sedans for hire
9–15	100/600/50 split limits	Limousines, large shuttles, disabled person vehicles
16+ (interstate)	$5 million CSL	Charter buses, tour buses (federal FMCSA)
15 or fewer (interstate)	$1.5 million CSL	Interstate vans, small buses (federal FMCSA)

Kentucky's Division of Motor Carriers requires intrastate passenger carriers to file a Form E insurance certificate before operating, and it counts seating capacity by manufactured design, not actual ridership. A 15-passenger van needs 100/600/50 coverage even if it rarely carries more than five riders. These limits apply only to for-hire operations; personal carpools, employer shuttles and any service that doesn't charge a fare fall outside KRS 281.655.

Kentucky's TNC insurance obligations under KRS 281.655(12) and 601 KAR 1:113 activate the moment a rideshare driver turns on the Uber or Lyft app, not when a passenger enters the vehicle. Required limits shift upward once a ride is accepted.


App on, waiting for request (pre-trip acceptance)	TNC or driver's own policy	50/100/25 liability + basic reparation benefits + UM/UIM
Ride accepted through trip completion (prearranged ride)	TNC primary coverage	100/300/50 to 100/600/50 (per KRS 281.655(4)) + basic reparation benefits + UM/UIM
App off	Driver's personal policy	Kentucky personal auto minimums (25/50/25)

Standard personal auto policies in Kentucky exclude coverage the moment a driver logs into a TNC app, and under 601 KAR 1:113 the TNC must cover any gap from dollar one without waiting for a personal insurer denial. These phased tiers apply only to app-based rideshare platforms like Uber and Lyft; traditional taxicab and limousine operators follow the seating capacity tiers above, and delivery-only drivers for DoorDash or UberEats fall under 2024 KY HB 280 instead.

Kentucky's hazmat cargo requirements follow federal FMCSA guidelines under 49 CFR Part 171, with liability minimums between $1 million and $5 million based on hazard class. Kentucky doesn't set separate non-hazmat cargo minimums. Intrastate carriers follow the weight-based tiers under KRS 281.655 outlined earlier on this page.


High-risk hazmat	$5 million CSL	Tanks >3,500 gallons, Class A/B explosives, poison gas, liquified compressed gas
Standard hazmat	$1 million CSL	DOT-regulated flammables, corrosives, oxidizers, toxic substances
Petroleum/petroleum products in bulk (10,000+ lbs)	$1 million CSL	Falls under hazmat rules per KRS 281.655(6)
Petroleum/petroleum products in bulk (under 10,000 lbs)	100/300/50 split limits	Treated as standard carrier under KRS 281.655(5)
General freight, interstate (10,001+ lbs)	$750,000 CSL	Non-hazardous cargo under FMCSA authority
General freight, interstate (under 10,001 lbs)	$300,000 CSL	Cargo vans, sprinters, expedited freight
Household goods	$750,000 CSL + cargo insurance	Moving companies; requires BMC-34 filing with FMCSA

Kentucky's $5 million high-risk hazmat requirement under KRS 281.655 applies regardless of vehicle size, and the state draws a hard petroleum line at 10,000 pounds under subsections (5) and (6): loads below that threshold stay at 100/300/50, while loads at or above it require $1 million CSL. These cargo-based tiers apply only to for-hire carriers transporting goods belonging to others. A plumber or contractor hauling personal tools with no bill of lading stays at 25/50/25 unless GVWR pushes the vehicle into a higher weight tier. Common pitfalls include:

A cargo van under 10,001 pounds hauling Class A explosives triggers the full $5 million CSL just like a heavy-duty tanker
Cleaning supplies with oxidizers, pool chemicals and certain fertilizers can qualify as hazmat under 49 CFR 172.101 and trigger the $1 million floor

WHEN DOES FEDERAL LAW APPLY OVER CALIFORNIA LAW?

Federal FMCSA requirements take over when Kentucky vehicles carry cargo or passengers across state lines, or when a Kentucky-only leg is part of a larger interstate shipment chain. The federal threshold starts at 10,001 pounds GVWR for general freight, but hazmat triggers federal jurisdiction at any weight. A single Louisville-to-Cincinnati load shifts that vehicle to FMCSA minimums for the trip, even if the truck normally stays in state. Businesses operating entirely within Kentucky stay under KRS 281.655 tiers; confirm which rules apply through the Kentucky Transportation Cabinet, FMCSA insurance filing requirements and a licensed insurance professional.

Kentucky Commercial Auto Insurance Requirement Exemptions

Kentucky keeps its commercial auto exemptions narrow compared to states with broad agricultural or remote-area carve-outs. Exemptions under KRS 304.39-090 and the Kentucky Department of Vehicle Regulation apply only when a vehicle stays off public roads and outside commercial activity.


Vehicle used only for personal purposes	Personal auto insurance rules
Farm vehicles not operated on public roads	May not require liability coverage under road-use laws
Off-road equipment not driven on public highways	Not subject to on-road insurance mandates
Government vehicles under authorized self-insurance	Government self-insurance statutes
Vehicles not registered for road use (yard-only, private property)	No road-use liability requirement
Active-duty military with out-of-state insurance	May use out-of-state insurer to title and register in Kentucky

Kentucky's commercial auto exemptions end the moment a vehicle touches a public road for business purposes. A flatbed hauling hay between two private fields that takes a quarter-mile of state highway loses the exemption for that trip and needs at least 25/50/25 coverage. Contact your county clerk's office or the Division of Motor Vehicle Licensing if you're unsure whether a vehicle qualifies.

California Commercial Auto Insurance Alternatives

Kentucky permits exactly one alternative to the standard 25/50/25 split limits under KRS 304.39-090.

Combined single limit (CSL) policy: Kentucky accepts a CSL of at least $60,000 in place of 25/50/25, but the policy must include basic reparations benefits (PIP) unless the vehicle is a motorcycle. This option covers the base tier only and isn't available to passenger carriers, property carriers over 10,001 pounds or hazmat operations that must meet higher KRS 281.655 limits.
Surety bonds: Not accepted for commercial vehicle liability in Kentucky.
Self-insurance certificates: Not accepted for commercial vehicle liability in Kentucky.
Cash deposits: Not accepted for commercial vehicle liability in Kentucky.

Special Kentucky Commercial Auto Insurance Coverage Circumstances

Several situations in Kentucky create coverage obligations or gaps outside the standard requirement tiers.

Leased Commercial Vehicles

Kentucky lease agreements almost always require collision and comprehensive coverage on top of state liability minimums, plus limits well above 25/50/25, often $1 million CSL. Compare your policy line by line against the lease's insurance clause before renewal, because a gap between the two can trigger a default.

Coal and mining haul vehicles

Kentucky's eastern coal counties see heavy commercial truck traffic, and vehicles hauling loads between mine sites and processing facilities on public roads must carry the full KRS 281.655 weight-based limits. Once that haul enters a federal highway or feeds into an interstate shipment, FMCSA minimums apply instead.

Farm vehicles on public roads

Kentucky's farm vehicle exemption disappears the moment a truck or trailer pulls onto a public highway, even for a half-mile stretch between fields. A farm vehicle hauling produce to a Lexington farmers market on a state road needs at least 25/50/25 commercial coverage, a gap that catches seasonal operations off guard during harvest.

Vehicles crossing into bordering states

Kentucky shares borders with seven states, and a work vehicle that routinely crosses into Ohio, Indiana, Tennessee, West Virginia, Virginia, Missouri or Illinois may trigger those states' requirements or federal interstate rules. Confirm your policy covers multi-state operations and that your insurer knows about the cross-border routes.

Choice no-fault PIP on commercial policies

Kentucky's PIP requirement carries into commercial auto policies by default, covering medical expenses and lost wages up to $10,000 regardless of fault. You can reject PIP in writing, but that rejection only strips first-party medical coverage from listed drivers and employees. A driver injured in a work vehicle crash with no PIP would need workers' compensation or personal health insurance to cover those costs.

Commercial Auto Insurance Enforcement and Penalties in Kentucky

Kentucky doesn't rely solely on traffic stops to catch uninsured vehicles. The state's Electronic Insurance Verification System pulls monthly reports from every insurer, and the AVIS database flags any vehicle missing coverage for two consecutive months, triggering an automatic uninsured notice from the Division of Motor Vehicle Licensing.


First offense	$500	Registration suspended up to 12 months	Proof of insurance + $40 reinstatement fee
Second offense (within 5 years)	$1,000–$2,500	Registration suspended; license may be revoked	Six-month premium payment + court fines
Third or subsequent (within 5 years)	$1,000–$2,500	Extended suspension; vehicle may be impounded	Retake driving exam if suspension exceeds one year
Any offense	Up to 90 days jail (first); up to 180 days (repeat)	—	—

Kentucky doesn't require SR-22 filing to reinstate a suspended registration. You provide proof of active coverage and pay the $40 fee under KRS 186.040 (amended in 2024). That doesn't mean enforcement is lenient: the Electronic Insurance Verification System catches lapses automatically, and under KRS 304.39-060 an uninsured vehicle owner who gets into an accident forfeits the first $10,000 in medical expenses and lost wages they'd otherwise recover from the at-fault driver.

How to Verify Your Kentucky Commercial Auto Insurance Requirements

Walk through these seven steps for every vehicle your business owns or operates in Kentucky.

1
Identify how each vehicle is used
Kentucky ties coverage requirements to vehicle use and weight, not business type. Pin down whether each vehicle moves passengers, hauls cargo, makes local runs or crosses state lines.
2
Check each vehicle's weight ratin
Kentucky's intrastate carrier limits jump at 10,001 and 18,001 pounds under KRS 281.655, so pull the GVWR from the driver-side door jamb and classify each vehicle on the correct side of those thresholds.
3
Determine whether state or federal rules apply
A single interstate trip with cargo or passengers can shift a vehicle from Kentucky's intrastate tiers to federal FMCSA minimums, including moves that are part of a larger interstate shipment chain.
4
Confirm your liability limits meet the correct tier
Match each vehicle to 25/50/25 for local use, 100/300/50 or 100/600/50 for intrastate carriers by weight, or $750,000 to $5 million CSL for interstate and hazmat operations.
5
Verify your policy classifies each vehicle correctly
Every vehicle on your Kentucky commercial auto policy should be listed with the right use code and all authorized drivers named. A delivery van coded as a personal vehicle creates a gap your insurer will cite to deny a claim.
6
Confirm registrations and filings are current
Interstate carriers need a USDOT number and FMCSA filings (BMC-91 or BMC-91X plus MCS-90). Kentucky intrastate passenger carriers must file a Form E with the Division of Motor Carriers.
7
Check for Kentucky-specific coverage gaps
Confirm your PIP election status and what rejecting it removes. Verify multi-state coverage if vehicles cross into bordering states. Compare lease insurance clauses against your actual policy limits.

Kentucky Commercial Auto Insurance Requirements: Bottom Line

Your PIP election, vehicle weight classifications and whether any route touches interstate commerce are the three factors that shape what Kentucky requires from your commercial auto policy. Match each vehicle to the right tier, verify your policy's use classifications reflect reality and close any gaps between legal minimums and what your contracts demand.

Kentucky Commercial Auto Insurance Requirements: Next Steps

Legal minimums tell you what Kentucky and federal law require, but they don't tell you what your business can afford to leave uncovered. The gap between a 25/50/25 policy and a serious liability claim is where the real financial hit lands, so the next decision is how far above the floor your coverage should go.

If your goal is legal compliance

Verify that every vehicle's liability limits match the correct Kentucky or FMCSA tier, and confirm your insurer has each vehicle classified by its actual use. Once that's locked in, get commercial auto insurance coverage that reflects your current operations.

If your vehicles are valuable or highly visible

Kentucky's $25,000 property damage floor won't cover a totaled late-model truck, let alone a branded fleet vehicle rear-ended on I-64 through Louisville. Raise your PD limit well past the minimum and evaluate whether tool loads, signage or equipment racks create exposure that 25/50/25 can't absorb.

If you transport passengers

KRS 281.655 already pushes intrastate carrier liability to 100/300/50 or 100/600/50, but airport shuttle contracts and corporate accounts in Lexington and Louisville often set floors above those state numbers. Match your policy to the highest contractual requirement across every agreement your operation depends on.

If you haul goods or equipment

A 100/300/50 policy on a medium-duty truck carrying $200,000 in equipment down I-75 leaves a wide gap between what your insurer pays and what a lawsuit costs. Size coverage to the value at risk on your heaviest load, and check whether certain jobs push past the 10,001-pound FMCSA threshold.

If your business signs contracts

Brokers, shippers and general contractors in Kentucky routinely require $1 million in liability regardless of what state law says. Pull the insurance clause from every client agreement and platform terms of service. Falling short disqualifies you from the job before legal minimums come into play.

If your vehicles regularly cross into bordering states

Seven state borders mean Kentucky businesses are more likely than most to trigger interstate requirements on routine deliveries. Confirm your policy covers multi-state operations and that your insurer knows about cross-border routes. A Kentucky-only policy won't respond the way you expect to a claim filed in Cincinnati, Nashville or Charleston.

If Your Business Operates Near the Mexican Border

Standard California policies don't cover incidents in Mexico. Purchase separate Mexican liability coverage from a Mexican insurer before crossing the border. San Diego and Imperial County businesses with regular cross-border operations should maintain year-round Mexican coverage rather than purchasing per-trip policies.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

Read Full Bio »

sources

Federal Motor Carrier Safety Administration. "Insurance Filing Requirements." Accessed February 20, 2026.
U.S. Department of State. "Mexico Travel Advisory." Accessed February 20, 2026.
U.S. Department of Transportation. "49 CFR Part 171 - General Information, Regulations and Definitions." Accessed February 20, 2026.
Kentucky General Assembly. "KRS 304.39-090 — Security Required." Accessed February 20, 2026.
Kentucky Administrative Regulations. "601 KAR 1:113 — Transportation Network Company." Accessed February 20, 2026.
Kentucky Transportation Cabinet, Division of Motor Carriers. "Passenger Vehicle." Accessed February 20, 2026.

Kentucky Commercial Auto Insurance Requirements

What Commercial Auto Insurance Is Required in Kentucky?

Kentucky Commercial Auto Insurance Requirements by Vehicle Weight

Kentucky Commercial Auto Insurance Requirements by Passenger Count

Kentucky Commercial Auto Insurance Requirements by Service Type

Kentucky Commercial Auto Insurance Requirements by Cargo Type

Kentucky Commercial Auto Insurance Requirement Exemptions

California Commercial Auto Insurance Alternatives

Special Kentucky Commercial Auto Insurance Coverage Circumstances

Commercial Auto Insurance Enforcement and Penalties in Kentucky

How to Verify Your Kentucky Commercial Auto Insurance Requirements

Identify how each vehicle is used

Check each vehicle's weight ratin

Determine whether state or federal rules apply

Confirm your liability limits meet the correct tier

Verify your policy classifies each vehicle correctly

Confirm registrations and filings are current

Check for Kentucky-specific coverage gaps

Kentucky Commercial Auto Insurance Requirements: Bottom Line

Kentucky Commercial Auto Insurance Requirements: Next Steps

sources