All 50 U.S. states require drivers to carry auto insurance, but the level of required coverage varies from state to state. Kentucky insurance providers are required to report policy statuses to the state monthly, and if your policy has lapsed, you must either provide proof of new insurance or face penalties. Your auto insurance policy covers accidents involving your vehicle whether you are driving or someone else is driving with your permission.

Minimum Required Insurance Coverage in Kentucky

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $25,000 for one person
• Minimum of $50,000 total for the other driver and all passengers

PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and public or private property surrounding the accident scene

• Minimum of $10,000 for all property damage

PIP (Personal Injury Protection): Coverage for medical expenses for yourself and your passengers following an accident that is your fault

About Liability Coverage

In general, whoever is found to be at fault for the accident assumes the financial responsibility for all injuries and property damages. Liability insurance covers the medical and property damage expenses of the other driver and his/her passengers if you are determined to have caused the accident. Liability insurance does not cover your own expenses. If you want to be covered for damages to your own vehicle for an accident that is your fault, you must purchase collision coverage. If the other driver causes the accident, his/her liability insurance will cover your medical and property damage expenses.

If you have a loan, lease, or lien on your vehicle, you may be required to carry more comprehensive insurance than what is required by the state.

About Personal Injury Protection (PIP)

Personal injury protection is designed to cover your medical expenses if you are at fault for an accident. PIP is different from UMC (Uninsured/Underinsured Motorist Coverage) because it only covers medical expenses, lost time, and funeral expenses, but does not cover your property damage.

The benefits of personal injury protection insurance may be duplicated by your health insurance plan, so you should check with your health insurance provider to make sure you are not purchasing coverage you don’t need. However, PIP covers all passengers in your vehicle, whereas health coverage only applies to individuals named on your health insurance plan.

No-Fault vs. Tort Systems

When involved in an accident, Kentucky drivers have the option of choosing a no-fault or tort system; therefore, Kentucky’s system is referred to as a “choice no-fault” system. In the case of an accident, Kentucky drivers can either accept the benefits offered by no-fault coverage, or they can refuse no-fault coverage and opt for the tort system.

No-fault coverage pays for the policyholder’s medical expenses regardless of who was at fault for the accident, and it precludes the possibility of one driver seeking legal recourse against the other driver. In other words, a no-fault policy pays for injuries and legally prevents a driver from suing another driver for medical expenses, pain and suffering, lost time, or other costs related to the accident. No-fault coverage does not cover property damage; in this system, property damage is the responsibility of whoever causes the accident and is covered by liability insurance (only for the driver who was not at fault).

Tort coverage, however, reserves a driver’s right to bring a lawsuit against the other driver and seek financial compensation for injuries, pain and suffering, and other related expenses. To opt for tort coverage, Kentucky drivers must provide written documentation refusing no-fault coverage.

Determining Fault after an Accident

If you are involved in a traffic accident, you should contact the police immediately and file a report. The law enforcement officer(s) on the scene will gather statements from both drivers, all passengers, and any available witnesses, and will also record information about the traffic circumstances surrounding the accident. The entire report will be used to assess fault for the accident. You should not admit fault after an accident; instead, wait for the report to be compiled and for your insurance company to determine which driver was at fault.

State-Issued Proof of Insurance

All drivers in Kentucky are required to carry proof of insurance in their vehicles at all times. If you are involved in an accident or a traffic stop, you will be asked to provide proof of insurance. If you cannot provide proof of insurance or do not carry the required coverage, you will be subject to a fine of $500-1,000 and up to 90 days in jail. Proof of insurance is also required when renewing or registering a vehicle with the Department of Motor Vehicles.

Kentucky Automatic Insurance Reporting

Kentucky insurance providers are required to file monthly reports to their counties on the status of their customers’ insurance policies. Any drivers whose policies have lapsed will be contacted by the state and required to provide proof of new insurance. Failure to do so may result in fines and suspension of driving privileges.