Kentucky Car Insurance Basics


Purchasing car insurance in Kentucky is a necessity. Not only is it illegal to drive without insurance, it’s also risky. Car insurance protects drivers from potential significant financial loss in the event of an accident. Despite the importance of insurance, many drivers don’t understand auto insurance. So to ensure you understand, at the very least, the basics of car insurance, here is a comprehensive guide.


What You Need to Know About Kentucky Car Insurance Laws


Carrying auto insurance is the law in Kentucky, but that doesn’t mean just any insurance plan will suffice. If you get pulled over and cannot provide proof of insurance, the state has a right to revoke your license and slap you with a fine ranging from $500-$1,000. Additionally, a jail sentence of up to 90 days can be imposed, although unless you are a habitual offender, jail time is unlikely.


The punishment handed down by the state may not be the only trouble you run into if you get pulled over without carrying insurance. When you finally do search for insurance, you will likely be considered a “high risk” driver and will be charged higher rates.


The state of Kentucky is a 25/50/10 state for car insurance. Drivers are required to obtain an insurance policy that covers a minimum of $25,000 for bodily injury to an individual, $50,000 for total bodily injury caused in an accident, and $10,000 for property damage. The reason the state requires drivers to carry insurance is to ensure other affected in the accident aren’t stuck paying their own medical bills and body shop costs for an accident they didn’t cause.


Drivers are not legally required to purchase full coverage insurance. They are only required to purchase liability insurance, although full coverage is certainly recommended. The difference between the two types of insurance is full coverage covers damages to the at-fault driver’s vehicle and the other driver’s vehicle. Liability insurance only covers the driver that wasn’t at-fault. This applies to all drivers, including motorcyclists.


How Your Insurance Premiums are Determined


There is no standard car insurance premium. Unlike when you buy, say, a laptop from Best Buy, the amount you are charged for car insurance may not be the same as your friend will pay, sometimes even for the same plan. If you pay more for the same plan as your friend, the insurance company isn’t discriminating against you. They don’t like your friend more. They just think your friend is less of a financial risk to the insurance company. Your friend is less of a risk based on all or some of these factors:


  • The vehicle you drive – Drivers with SUV’s, sports cars, motorcycles, etc. are considered more of a risk to have an accident than those driving standard cars.
  • Population of where you live – Drivers in cities such as Louisville and Lexington are more at risk for accident because there are more cars nearby on the road than those living in rural Kentucky towns.
  • Credit score – Unfortunately, your credit score does come into play when determining your insurance premiums.
  • Driving history – The more accidents and traffic tickets you have, the more you will pay for insurance.
  • Age – The older you are, the cheaper your insurance rates.


Now that you understand the basics of Kentucky car insurance, get signed up for a comprehensive plan. We can help you find affordable coverage that protects you against financial loss and keeps the cops off your back.