Kentucky Auto Insurance Law

Kentucky is one of three choice no-fault states in the country. Choice no-fault means that a motorist must carry no-fault liability insurance, but can opt for the tort liability principle when he wants to sue another motorist. The no-fault principle requires insurance providers to pay for damages brought on by policyholders and their dependents. Abiding by this principle forbids the driver from suing the other driver for damages, since no-fault insurance will pay for much of those costs. However, this driver may also choose to follow the tort system, which reserves the right to sue the other driver for damages. In order to sue, the driver must fill out a document that refuses no-fault insurance.

Because Kentucky offers the choice of a no-fault system, all of its drivers are required to obtain at least $10,000 of Personal Injury Protection (PIP) insurance. This coverage pays for medical expenses as well as lost wages, pain and suffering, and funeral costs. It is for the sole use of the policyholder and the dependents on his policy. Another Kentucky-required insurance, Bodily Injury Liability (BIL), pays for these same expenses except it only provides for the blameless party of an accident. The state requires a minimum of $25,000 of BIL per person injured an accident, as well as $50,000 per total accident injuries of multiple persons. Kentucky also requires its drivers to have at least $10,000 of Property Damage Liability (PDL), which takes care of damage done to the other party’s car and other property involved in the accident.

If you fail to follow Kentucky’s state insurance requirements, you will face suspension of your license and vehicle registration if you are stopped by a traffic officer. This officer will also demand a payment from $500-$1000 for driving uninsured, and may sentence you to 90 days of jail. For enforcing insurance requirements, Kentucky mandates that insurance providers electronically submit their active insurance policies on a monthly basis to a county clerk. If a policy has been cancelled, the state will likely contact the newly uninsured person asking for information on a new policy. If the respondent doesn’t obtain new insurance, he will face suspension of his license and lapse fees.

In addition, a Kentucky motorist must produce proof of auto insurance if he is stopped by a traffic officer either at the scene of an accident or for a road offense. This proof takes the form of the Kentucky auto insurance I.D. card, which details the driver’s insurance policy. The officer even reserves the right to stop any motorist for a routine check, so it is highly risky to drive without it. This right proves that in Kentucky, it is much more financially costly for a driver to forgo auto insurance than it is for him to purchase and renew the required coverage.

Kentucky State Auto Insurance Requirements:

• Bodily Injury Liability: $25,000/$50,000 Limit
• Property Damage Liability: $10,000 Limit
• Personal Injury Protection: $10,000 Limit
• Choice based on the no-fault system or tort system

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