Kentucky Car Insurance; state auto insurance requirements

Closing insurance gaps

Kentucky Minimum Car Insurance Limits   


If you own and operate a car in Kentucky, you are required to meet certain financial standards. State mandated requirements protect other drivers using Kentucky’s roads and highways..
For almost all of us, this means that we must have an auto insurance policy. Kentucky and all other states require car owners to meet or exceeds certain limits.
When considering car insurance, the first thought of many is how to replace or repair their car in the event of an accident. For this, you would need to have collision or comprehensive coverage in place. While this coverage is important, it is not the insurance coverage mandated by the state.
Because we live in a no-fault state, Kentucky car owner’s are required to maintain two coverage’s :
• Auto Liability Insurance
• No-Fault Car Insurance
Liability Insurance
If you are involved in an accident and found to be at fault, you can legally be held financially responsible. This is why you buy car insurance! Your auto liability policy protects other drivers. Specifcally it provides coverage for bodily injury and/or property damage that results from your actions.
While you may be held reasonable for the full cost of damages, insurance companies will only pay up to the limits declared in the policy.
What does that mean?
It means that we need to ask what will happen if the cost of damages exceeds our auto liability policy limits. Answering that goes well beyond the abilities of an insurance agent or even a claims adjuster. But it seems logical that an inadequately insured auto owner has opened the door to many potential headaches. Including the possibility of significant financial exposure.
Counting calories? Then ordering the minimum size soda and fry at McDonald’s is a wise decision. Using the same logic with your insurance agent may put you on a course for disaster. Before buying insurance, it is essential that you know the state’s requirements.
Kentucky Auto InsuranceKentucky minimum auto liability insurance requirements are as follows:
• Kentucky motor vehicle liability coverage minimum for bodily injury is unchanged.
     o $25,000 for bodily injury liability coverage per person
     o $50,000 for bodily injury liability coverage per accident
• Kentucky motor vehicle liability coverage minimum for property damages increased 150%.
     o Before 1/1/18, the minimum requirement for auto liability property damage was $10,000
     o Kentucky auto owners are now required to carry at least $25,000 for claims made against them as        result of damaging the property of others
For years Kentucky Insurance minimums for motor vehicles as:
$25,000 Bodily Injury (BI) per person / $50,000 BI per accident / $10,000 Property Damage (PD)

Today, Kentucky Car Insurance state-mandated minimums are:

25/50/25 …or… $25,000 (BI) per person / $50,000 BI per accident / $25,000 (PD)

WARNING! Many sites continue to post Kentucky’s minimum required auto insurance limits that were in effect prior to January 1st, 2018.
Before asking an insurance agent for the “Cheapest Car Insurance, you got,” consider the following:
• Cheap car insurance more than likely means you are getting the state-mandated minimums.
• How far will those dollars go if you are the cause of a severe auto accident?
• Settlement cost seldom equal medical cost. Why? For one, pain and suffering. If you want an estimate for total settlement cost, a good rule of thumb is to multiple medical bills by 3. If your negligence was the cause of a car crash and the other party sustained $10,000 in medical expenses you are looking at $30,000 to settle the claim. $5,000 higher than the state minimum!
• How far will $10,000 go in an emergency room today?
• How far will the $50,000 per accident limit go if you hit a car with multiple passengers? What if you are the cause of a multiple car collision or if the other vehicle isn’t a car but rather a bus?
• Kentucky has done a great job by raising the required minimum coverages for property damage. But have you priced a new car lately? Better yet, a new truck? What if you cause damage to property other than an automobile? You may someday depend on your auto insurance to cover damages to a building, utilities, infrastructure, or some other non-auto related properties.
Cheap car insurance can cost you in more ways than you realize. Ever wonder how insurance companies come up with an auto insurance premium for you and your car?
Your premium is the result of a number of factors. Every car insurance companies has their own unique formula. Each aimed at helping them attract clients and make a buck too. What you may find surprising is that many companies will penalize you if your current insurance limits are the state minimums. Never buy the state mandated minimum without first considering the cost of better coverage. It’s likely to be less than you think and it will save you in the long run.
In the end, cheap auto insurance may wind up costing you more than you bargained for. Even if you never have an accident! Consider your options, prepare for the worst and be sure that you find an insurance agent the is willing to spend the time to help you through the process.

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