Kentucky Car Insurance Laws: How Much Coverage Do I Need?

In Kentucky, you must carry $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, and $25,000 property damage liability.
Written by Amy Bobinger
Edited by R.E. Fulton
Reviewed by Brice Regling
background
All
Kentucky car insurance
policies must include at least $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability insurance.
You’re also required to carry $10,000 in personal injury protection (PIP)—also called basic no-fault coverage—unless you choose to reject it in writing.

Kentucky auto insurance requirements

The Kentucky Department of Insurance requires all Kentucky drivers to carry
car insurance
that meets the following limits:
Type of insurance coverage
Minimum coverage limits
$25,000 per person to a maximum of $50,000 per accident
$25,000 per accident
$10,000 per accident
Because Kentucky is a choice no-fault state, you can reject personal injury protection (PIP) coverage for yourself. You’ll still be required to carry guest PIP coverage for your passengers, though.
Your insurance company is required to offer uninsured motorist coverage in the same amount as the minimum liability limits, but you can reject it in writing if you don’t want to carry it.
Kentucky offers drivers the option to purchase a combined single-limit auto insurance policy with at least $60,000 of protection, rather than a split-limit 25/50/25 policy. Note that not all insurers offer single-limit car insurance coverage.
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Kentucky offers drivers the option to purchase a combined single-limit auto insurance policy with at least $60,000 of protection, rather than a split-limit 25/50/25 policy. The
Jerry
app helps you customize your coverage to suit what's right for you.
Note that not all insurers offer single-limit car insurance coverage.

Kentucky is a choice no-fault state

In a
no-fault state
, drivers file injury claims with their own insurance company after a car accident, regardless of fault. This limits your ability to sue the other party for medical bills. 
In the Bluegrass state, drivers must carry at least $10,000 per person in basic no-fault coverage, also known as personal injury protection (PIP) or basic reparations benefits (BRB). No-fault coverage will pay for: 
  • Medical expenses resulting from an accident
  • Lost wages resulting from an accident (up to $200 a week)
  • Replacement services (benefits to compensate for work the injured party would have completed)
  • Survivor’s benefits (additional losses suffered by survivors due to a person’s death) 
Although your right to sue after an accident is limited in a no-fault state, you can still file a lawsuit to collect damages if:
  • Medical bills resulting from the accident exceed $1,000
  • You or a passenger broke a bone or suffered permanent disfigurement or a permanent injury in an accident
  • Someone in your vehicle dies as a result of the accident
But Kentucky is unique—it’s a choice no-fault state, which means you can opt out of no-fault coverage by filling out a
No-Fault Rejection Form
.1 If you opt out: 
  • You’ll have the opportunity to sue another party if they cause an accident, but it will also leave you open to lawsuits. 
  • You’ll have to prove the other party was at fault before you can collect any damages, and your recovery amount will be reduced if you’re found partially at fault.
  • Your rejection of the no-fault coverage will follow you, no matter which vehicle you’re in. (If you drive a motorcycle, you can file a no-fault rejection that only applies to that motorcycle.)
  • The rejection will stay active indefinitely unless you revoke it. If you file a rejection on behalf of a minor, it will be revoked once they reach the age of 18. 
If you reject no-fault coverage in Kentucky, your liability premiums will likely be higher to offset the risk that you might be sued after an accident.

Will minimum insurance coverage save me the most money?

Purchasing the minimum amount of liability insurance in Kentucky will be the cheapest option up-front, but it could cost you more in the long run. 
Liability insurance
only covers vehicle repairs and medical bills for the other party if you cause an accident—and only up to your policy limits. That means you’ll be responsible for:
  • Damages to your vehicle
  • Injuries to yourself or your passengers that exceed your no-fault coverage limits
  • Damages to the other vehicle that exceed your liability limits
According to the Insurance Information Institute (III), the average bodily injury claim in 2021 was $22,734, while the average property damage claim was $5,314.2 In other words, 50% of accidents generate higher liability claims, quickly exceeding Tennessee’s minimum liability coverage and leaving you vulnerable to lawsuits that could claim your assets and even your future income. 

Our recommendation

  • Buy at least $50,000 of bodily injury liability coverage per person, and at least $100,000 per accident
  • Raise your property damage liability coverage limits to at least $50,000
  • Raise your PIP coverage limits as high as you can afford, or supplement them with MedPay (see below)
  • Purchase collision and comprehensive coverage to replace your vehicle
You’ll likely be required to carry
full coverage
if you lease or finance your vehicle.
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The
Jerry
app ensures Kentucky drivers receive tailored insurance recommendations to meet their needs.
We know the importance of comprehensive coverage for both financial and legal security, so we provide users with valuable insights into the cost-effectiveness of various insurance options.

Average cost of car insurance in Kentucky

The minimum amount of insurance coverage in Kentucky will cost you an average of $1,556 per year, or $129 per month. If you upgrade to a 
full-coverage
 policy, your insurance premiums will rise to an average of $2,505 per year, or $208 per month.
But an average can’t really tell you much about what your own auto insurance rates will be. That’s because your
car insurance rate is calculated
based on a number of unique factors, including your driving record, where you live, your age, the car you drive, and more. 
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The best way to save on your car insurance is to use an
insurance comparison app
like
Jerry
to get car insurance quotes from multiple insurers at once.
That way, you’re more likely to find an insurance provider that offers favorable rates to drivers who match your profile.
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Optional coverages in Kentucky

Other coverage options in Kentucky include: 
Kentucky law requires insurance companies to offer both PIP and UMBI when you buy a car insurance policy. You can decline UM/UIM coverage, but you can only decline PIP for yourself—you’re still required to carry it for your passengers.

Penalties for driving without insurance in Kentucky

The Kentucky Transportation Cabinet (KYTC) maintains a database of all registered vehicles, and the insurance information for each of those vehicles is updated monthly by insurers. If a registered vehicle doesn’t have insurance, the owner will be given 90 days to obtain and show proof of insurance, or the vehicle’s registration will be canceled.
And if you’re caught
driving without insurance
, you could face the following: 
  • Fine of $500–$1000
  • Up to 90 days in jail
  • Loss of motor vehicle registration
If you have a second driving-without-insurance offense in five years, the penalties could include:
  • Loss of motor vehicle registration for one year or until proof of insurance provided
  • $1,000-$2,500 fine
  • Maximum of 180 days in jail
  • Registration reinstatement fee
  • Driver’s license suspension for at least six months
  • $40 driver’s license reinstatement fee
  • Six months of insurance premiums paid in full
For subsequent offenses within five years, you could face: 
  • Loss of motor vehicle registration for one year or until proof of insurance provided
  • Driver’s license suspension for one to two years
  • $1,000-$2,500 fine
  • Maximum of 180 days in jail
  • Registration reinstatement fee
  • $40 driver’s license reinstatement fee
  • Six months of insurance premiums paid in full
  • Eye and written driving tests

In Kentucky, you can skip insurance if you present proof of financial responsibility

To self-insure in Kentucky, here’s what to do:
  • Submit a self-insurer application to the Commissioner of Insurance
  • File an annual income statement that proves you can pay for any damages that result from an accident you cause
  • List all vehicles that you’re self-insuring
  • Pay a security deposit to the Commissioner of Insurance—$50,000 for the first vehicle and $10,000 for each additional vehicle, up to a maximum of $200,000
  • If you’re active duty military stationed in Kentucky or you live in another state but you’re attending a college, university, or technical college in Kentucky, you can keep your registration and insurance in your home state.
  • If you’re putting a vehicle (like an RV) in storage for part of the year, you can turn in your license plate and cancel your insurance temporarily, then renew your registration and insurance when you plan to drive again.

FAQs

What are the minimum car insurance requirements in the state of Kentucky?

In Kentucky, you must carry $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident. You must also carry $10,000 per person in no-fault coverage, but you can decline the coverage for yourself in writing.

What is considered full coverage in Kentucky?

Full coverage doesn’t have a specific definition, but it’s generally used to refer to a car insurance policy that exceeds state coverage requirements with at least some combination of liability insurance, collision coverage, and comprehensive coverage. In Kentucky, a full coverage policy would include property damage liability, bodily injury liability, uninsured motorist coverage, no-fault coverage (PIP), collision coverage, and comprehensive coverage.

Does Kentucky require SR-22 insurance?

No. If your license is suspended in Kentucky, you’re not required to file an SR-22 to reinstate it.

Can you show digital proof of insurance in Kentucky?

Yes, Kentucky allows drivers to use digital ID cards as proof of auto insurance coverage.

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