Auto Insurance in Kentucky

Auto Insurance in KentuckyAuto insurance in Kentucky is mandatory if you wish to operate a motor vehicle on the roads and highways of the commonwealth. Auto insurance is mandatory so that in the event of an accident, any damage you cause to another driver and his or her property is covered, and that you are covered if the other driver is found to be at fault. Most states now require mandatory auto insurance to ensure that all drivers and their property are covered in the event of an accident.

Types of Auto Insurance in Kentucky

There are two basic types of auto insurance you can purchase in the commonwealth of Kentucky; these are full coverage insurance and liability insurance. Full coverage insurance is mandatory if a bank or other financial institution has a lien against your vehicle. The reason for this is to protect the financial institution against loss in the event that you have an accident. Full coverage insurance protects the financial institution by paying for all damage to your vehicle no matter who is at fault; even if your car is totaled, the financial institution will still receive at least enough cash to pay off the loan on the vehicle.

If your car is paid off you can carry liability insurance if you choose, liability insurance is much less expensive than full coverage. The reason this type of insurance costs less is because it only covers damages that you do to another person or their property if you are at fault during an automobile accident. Any damages to you, your vehicle, or your property will need to be covered by you, or the insurance company of the other driver if they are at fault. If you decide to purchase liability Auto insurance in Kentucky, you must ensure that the coverage meets state minimum requirements. Most insurance companies that sell insurance within the commonwealth are aware of the state minimums and create insurance policies that meet the minimum requirements, but as a driver, you should be aware of these minimums as well.

Insurance Minimums for the State of Kentucky

When purchasing liability auto insurance in Kentucky the minimum coverage amounts that you want to look for are 25,000/50,000/10,000. These are the shorthand numbers for minimum coverage; each of the numbers has an exact meaning. The $25,000-dollar number is the minimum coverage, which is required to cover bodily injury to or the death of one person in any one accident. The $50,000 dollar amount covers bodily injury or death if there are two or more people involved in the accident. There is a limit of $25,000 dollars per person. The $10,000 dollar amount is the minimum coverage for the destruction of property due to an accident where you are at fault.

Presenting Proof of Insurance in Kentucky

Many people try to avoid purchasing auto insurance in Kentucky, but the state has created several different methods of ensuring that all residents of the state carry at least the minimum amount of insurance as described above. One of the ways they do this is by requiring you to show proof that you have insurance. You must show proof of insurance any time you are requested to do so by a law enforcement officer. You must also show proof of insurance when you are registering a vehicle. Another policy in the state of Kentucky is that the state requires that all insurance providers report all of their active policies each month. This list of active policies is compared to the number of licensed drivers in the state, if someone is found not to have insurance, they will be contacted and required to provide proof of insurance within a set amount of time.

If you fail to carry the proper amount of auto insurance in Kentucky, the penalties include the loss of your vehicle plates and suspension of your driver’s license. If you cannot show proof of insurance when asked by a law enforcement officer you may be fined $500 to $1,000, you could be sentenced to 90 days in jail, or both.
You should also be aware that within the commonwealth of Kentucky, insurance companies are required to inform the state if you drop you insurance, or if they cancel you policy. If this happens, you will be asked to send proof of a new policy for your vehicle.