Kentucky Car Insurance: Requirements for Drivers

Kentucky is a choice no fault state. This means that if a driver chooses to abide by the no fault principle they will be covered by their own insurance company in the event of an accident and forfeit their right to sue the other driver for their medical expenses unless their expenses exceed a certain quota. If a driver chooses to follow the traditional tort system rather than go with a no fault policy they retain the right to sue the other driver for the damages.

• Because Kentucky is a no fault state all of its drivers are required to carry PIP insurance. This will pay for their medical expenses and other related costs following an accident. Individuals with excellent health insurance benefits may elect to carry only a minimum PIP policy. This will provide ten thousand dollars for:
• Medical Expenses
• Lost Wages
• Funeral expenses

• Since the residents of KY do reserve the right to decline to follow the no fault system, and since injury and medical expenses beyond a certain point waive the driver responsible’s right to not be sued, liability insurance is also a requirement for all registered vehicles to the tune of twenty five thousand dollars in bodily injury coverage for one individual, fifty thousand dollars for the combined medical expenses of all of the occupants of the vehicle and ten thousand dollars to cover the costs of repair to damaged property, including the other driver’s vehicle.
• While it is not a requirement, it is recommended that all drivers in KY carry comprehensive/collision coverage on their vehicle. In the event that the insured is responsible for an accident they will be solely responsible for any necessary repair to their vehicle; liability will not extend to their costs.
• Not every state in the US requires their drivers to possess liability insurance; therefore, the it is strongly recommended that the savvy motorist carry uninsured/underinsured motorist insurance. All too often a driver will be involved in a hit and run, or be hit by a driver who does not possess insurance or whose insurance is not sufficient to cover the costs incurred by the accident. If a driver has not elected to follow the no fault system this can leave them holding a bill for hundreds of thousands of dollars and no recourse to follow other than trying to personally sue the driver, who they may or may not know the identity of and whose assets may or may not be sufficient for the insured to be reimbursed in this lifetime. Uninsured/underinsured motorist insurance effectively provides an alternative to this unpleasant state of affairs.

For more information about Kentucky insurance policies residents can contact the Kentucky Office of Insurance in Frankfort, KY at (800) 595-6053.