Many people look at car insurance as an expensive obligation, when, in fact, it helps protect them. While insurance can't stop an accident from happening, it can minimize the impact a crash has on your life, if you have the right coverage. Liability insurance offsets the financial risk associated with driving.
Collisions happen every day, for a range of reasons. Whether it's due to inclement weather or a sudden mechanical issue, a crash can create thousands of dollars of property damage and result in major medical bills. In order to legally drive in the state of Kentucky, you need to have a current no-fault insurance policy. However, not every policy is created equal. Some cover more or less than others.
Kentucky requires liability insurance for all vehicles
If you want to register a vehicle in Kentucky, you need to have proof of insurance coverage. This requirement is in place to protect everyone in the state from the costs associated with uninsured drivers. Those who don't insure and register their vehicles are subject to serious penalties, including a fine of between $500 and $1,000 and up to 90 days in jail. The state will also revoke registration for any vehicle that doesn't have valid insurance coverage.
Uninsured drivers can cause a lot of damage, and without a legal requirement to carry policies, the state would likely end up absorbing a lot of the costs associated with crashes. Of course, when people only carry the legal minimum level of insurance, that can leave a lot of uncovered expenses.
Kentucky's minimum insurance coverage isn't much
The lowest amount of coverage a person can legally carry is $10,000 for property damage and $25,000 for one injury or death and $50,000 for two or more people injured or killed in a single crash. At first glance, that may seem like reasonable coverage, but careful consideration makes it clear those minimums don't offer much protection. Even used vehicles regularly cost more than $10,000 to replace. Repairs on vehicles can easily cost that much or more after a serious collision.
The medical coverage is even more problematic. A single surgery or a few weeks in the hospital could use up all of the available insurance coverage. That could leave you or other people injured with massive medical expenses and no source of income. The lowest legal level of car insurance leaves you vulnerable to a host of issues.
Reviewing your insurance policy is a good idea, especially if you don't currently have riders or coverage for uninsured drivers or underinsured drivers. These additions to your policy could cost very little, but offer immense value in terms of protection if you are ever in a serious motor vehicle collision.