When you own a car, you need insurance – both to protect your investment in your vehicle and yourself from major financial liabilities if you’re ever in a wreck.
Car insurance is actually a legal requirement in Kentucky. For the last decade, Kentucky has enforced this requirement through a program that automatically matches vehicle identification numbers (VINs) covered by insurance companies to VINs in its own database. If there’s no match, you’ll be required to prove that you have coverage.
What’s the minimum car insurance requirement in Kentucky?
To legally register and operate your vehicle in this state, you must have the following minimum insurance coverages:
- ● Personal injury protection (PIP): $10,000 per accident
- ● Uninsured motorist coverage: $25,000 per person and $50,000 per accident
- ● Property damage liability: $10,000 per accident
- ● Bodily injury liability: $25,000 per person and $50,000 per accident
There are a few exceptions to this rule, in that both PIP and uninsured motorist coverage can be rejected if you do so in writing, but that would leave you in a very exposed position, financially, if there’s a wreck and the other driver isn’t covered.
Is the minimum car insurance really enough?
How much car insurance you’re required to have and how much insurance you actually need are two different things. The state requirements don’t really take into account all of the potential variables involved such as:
- ● How much you can afford to pay each month for your premium
- ● The value of your vehicle and what it would take to replace it
- ● Your income and what you would need to replace it if you were injured
- ● What you can afford to pay out-of-pocket if you have an accident
Industry experts generally recommend that you carry at least $100,000 per person, $300,000 bodily injury liability per accident and $100,000 for property damage per accident. You should consider raising the level higher if you can afford it.
Car accidents are an unfortunate danger any time you’re on the road. If you’re injured by another driver’s negligence, take immediate steps to protect your finances and your future.