Auto Coverage in Kentucky
Auto Insurance Laws and Trends in KY
Kentucky has a unique set of insurance laws compared to many of the other states. Most states have adopted either the tort system or the no-fault system of insurance. In contrast, Kentucky has implemented a choice no-fault system. This means that each insurance company is responsible for paying injury and property damage claims.
Usually, there is a certain threshold after which an injured party can start a claim against the other driver for injuries. In a choice no-fault system, the injured party can waive this threshold and immediately choose to file a claim. Kentucky enjoys having the 28th highest insurance premium rates in the entire country.
Having at least the minimum limits of liability insurance is important for this reason; otherwise, a motorist may be stuck paying for expenses out of pocket. The minimum required liability limits in Kentucky are:
Requirements for auto insurance in Kentucky
- Bodily injury: $25,000 per person and $50,000 per accident
- Property damage: $10,000 per accident
- Under/uninsured motorist coverage: $10,000
- Drivers can opt for blanket coverage : $60,000 total.
In the state of Kentucky, the focus on traffic safety rests on educating beginners on the rules and regulations of the road. One of the newest laws to be implemented is the No Pass/No Drive law. This is meant to promote responsibilities in new drivers. If certain marks are not achieved in school, then the state can revoke their driving privileges.
The Kentucky No Pass / No Drive Law seems to be having a positive effect on young drivers. According to the Annual Traffic Collision Report compiled by the state of Kentucky, the number of collisions involving young drivers has been declining.
Year |
Under 16 years |
16 to 19 years |
2005 |
9 |
131 |
2006 |
8 |
127 |
2008 |
5 |
87 |