Auto Insurance in Kentucky

Overview

When it comes to purchasing car insurance in the Commonwealth of Kentucky, consumers are given the option to choose whether they wish to be covered by a limited tort (no-fault) system or a full tort system. This is known as “optional” no-fault or “choice.”

If you are purchasing Kentucky auto insurance, you will need to determine which policy type is best for you. Discuss your needs with your insurance company or agent, as once you have chosen your terms, you may not change the terms unless you have your agent rewrite your auto insurance policy.

The Bluegrass State is only one of three states in the U.S. to have this choice; the other two states are New Jersey and Pennsylvania.

If you don’t choose an auto insurance option when purchasing your Kentucky auto insurance, you will be assigned the limited tort (no-fault) option.

Minimum liability insurance requirement

According to Kentucky law, it is mandatory for vehicle owners to carry minimum auto insurance coverages. Two types of liability coverage are required: bodily injury liability coverage and property damage liability coverage.

The minimum amount of liability coverage required by Kentucky law is:

  • $25,000 for bodily injury per person
  • $50,000 bodily injury per accident; and
  • $10,000 property damage

The Commonwealth of Kentucky also requires motorists to carry basic Personal Injury Protection (PIP) in the amount of $10,000. Kentuckians can exercise their right to refuse PIP coverage by filing a special form. However, if you reject PIP coverage, you cannot receive PIP benefits.

Mandatory insurance

Kentucky law requires that all motor vehicles registered in the state of Kentucky carry the mandatory minimum coverages and be insured by a company licensed in Kentucky, Motorists need to show evidence of coverage each time you renew your vehicle’s registration.

You are required under Kentucky law at all times to have your auto insurance card in your motor vehicle.

Beware of fake Kentucky auto insurance cards

The Bluegrass State is currently investigating a high number of fraudulent auto insurance IDs. According to the Kentucky Office of Insurance (KOI), the prevalent practice is spreading. Creating and possessing these phony ID cards is a serious offense.

Help fight Kentucky phony insurance

Kentuckians need to be aware of buying bogus auto insurance. The state encourages all auto insurance buyers to call KOI’s Consumer Protection Division before purchasing a policy to verify that the auto insurance company you are working with is in fact a legitimate one. Call KOI at 1-800-595-6053.

Shopping for Kentucky auto insurance

First and foremost, the best way to keep your Kentucky auto insurance rates from spiraling out of control is to practice safe driving habits by driving defensively. A clean driving record with very few claims is the optimal way to keep policy costs down.

For Kentuckians looking to reduce the cost of their car insurance, it pays to shop around. Compare the rates for the same coverages with each company.

Again, before beginning to shop — it’s important to be on high alert against phony insurance companies. Beware of any company that offers a surprisingly low rate. Do call the KOI to confirm if the insurance company or agent is licensed and authorized to do business in Kentucky.

Other tips to consider: 

  • The easiest way to reduce your auto insurance policy premium is by raising your auto insurance deductible.
  • Never leave valuables in your automobile. In a poor economy, theft is on the increase and any claims to replace stolen items will only result in your paying higher premiums.
  • Inquire with each auto insurance company what types of discounts they offer. Many companies offer rate reductions for installing anti-theft devices. Also, if you have young drivers in your household, ask if the company offers “good student” discounts. If you have a senior driver in your home, having them attend a safe senior driving course to qualify for a discount.

Check your credit report

Under Kentucky law, insurers can use your credit history to decide if they will insure you, cancel you, renew you or increase your premium.

When shopping for Kentucky auto insurance, if your credit history is less than stellar, ask the insurer if they use credit history to determine your premium. Insurers that do use credit are required to tell you at the time you apply for the insurance that they will consider your credit history. If you ask, an insurer must tell you how much of your premium is a direct result of your credit score.

Average Annual Cost of Insurance

The 2011 average annual auto insurance premium for Kentucky is $1,629, which is slightly higher than the national average of $1,561.

 

Sources

Kentucky Department of Insurance
Tel 502-564-6034
Web http://insurance.ky.gov