Kentucky Car Insurance

A basic automobile insurance policy will provide the policy holder with six types of coverage. Bodily injury liability covers expenses related to injuries or deaths due to your negligence in an automobile-related accident. Property damage liability covers damage or destruction to another person’s property due to your negligence in an automobile-related accident. Comprehensive coverage is also included in a basic auto insurance policy to protect your vehicle from losses due to covered events that aren’t related to collision, while collision coverage pays for damages due to collision with another car or object. Personal injury protection, or no-fault coverage, also included in a typical auto policy, pays for medical expenses and lost wages due to an injury from an automobile accident, regardless of fault. Most states set a minimum requirement of auto liability coverage:

Required Coverages in Kentucky:

  • Bodily Injury Liability Per Person: $25,000
  • Bodily Injury Liability Per Accident: $50,000
  • Property Damage Liability: $10,000

Uninsured motorist and underinsured motorist coverage pays for bodily injuries to your or a passenger from an accident caused by a driver with no insurance, not enough coverage to pay for bodily injury, or a hit-and-run driver.

The state of Kentucky will revoke the registration of your motor vehicle if the Kentucky insurance department is made aware that you are driving without insurance. If a law enforcement officer in the state of Kentucky pulls you over and you do not have insurance, you face a fine ranging from $500 to $1,000 and/or 90 days in jail, in addition to the suspension of your license plates. This will put you in the “high risk” category and result in increased premiums for insurance companies.

The Kentucky Automobile Insurance Plan (KAIP) is available for those who are unable to obtain insurance on the voluntary market. To qualify, you must prove that you have been refused auto insurance within the last 60 days, pay a premium deposit with the application, and prove principal residency or vehicle registration in Kentucky.

Determining Your Rate in Kentucky

According to the Insurance Information Institute, the average expenditure for car insurance in Kentucky in 2009 was $699. The factors used to determine your insurance rate vary between insurance companies, but in general, an insurance company will take into account your age, your gender, your marital status, the type of car you drive, and your driving history. Inexperienced drivers will usually have a higher premium than experienced drivers, and drivers with a record free of tickets or accidents will have lower premiums than drivers with a history of traffic tickets and accidents. In addition, the area you drive in, including where you live and where you commute to, will affect the cost of your premium— a higher traffic or population density raises the insurance rate because of the higher accident and theft risk. An insurance company will also take into account your credit score to ensure on-time payment.