In Kentucky, every driver is required by law to carry a minimum amount of auto insurance coverage.
The Kentucky Department of Insurance sets the car insurance requirements for our state. The department also licenses agents, regulates the insurance market, and makes sure Kentuckians know their options.
How Much Car Insurance Do I Need?
Currently, Kentucky’s state minimum car insurance requirements are 25/50/10. The first two numbers in this figure refer to bodily injury liability limits and the third refers to the property damage liability limit.
In other words, to legally drive in the state of Kentucky, you will need at least $25,000 in bodily injury liability coverage per person and up to $50,000 per accident as well as a minimum of $10,000 in property damage liability.
However, Kentucky drivers have a choice to make that will add to their minimum car insurance requirements—the no-fault option.
Kentucky’s No-fault Option
Kentucky car insurance requirements are a little different than most states. We are known as a “choice” or “optional” no-fault state.
Most states follow either a no-fault system—the insurance provider pays for your claim no matter who caused the accident—or a tort system—someone must be found at fault and their insurance provider pays the innocent party’s claim.
In Kentucky, every driver has the option to choose the system he or she prefers. However, if you choose the no-fault option you will need to carry at least $10,000 personal injury protection (PIP) coverage.
PIP coverage will pay your damages for the amount specified by your policy regardless of who is at fault.
Is the Minimum Coverage Enough?
You may be surprised to learn that, for most drivers, the minimum amount of auto insurance coverage is inadequate.
For example, let’s say you’re in an accident, and you and two other people are seriously injured. You, the driver, have selected the minimum amount of coverage required in Kentucky: 25/50/10.
This means that if you and your passengers’ medical bills exceed $50,000, you will need to pay out-of-pocket to cover the remaining balance.
The state has set these limits low so that every driver has at least some auto insurance to cover medical expenses and damages they may cause others in an accident.
In reality, if you can afford additional coverage, you should purchase it.
We recommend getting a free, comparative auto insurance quote to find a policy that fits your budget and gives you sufficient coverage.