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Kentucky car insurance laws

Natalie Todoroff Maggie Kempken
Written by
Natalie Todoroff,
Edited by
Maggie Kempken
Published on June 13, 2024 | 6 min read

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Traffic on Brent Spence Bridge of Kentucky.
catnap72/Getty Images

If you plan to use the roadways of the Bluegrass State, you are responsible for understanding Kentucky car insurance laws. While the state’s geography is varied, from the rolling hills of the countryside to the bustling streets of urban centers, drivers must adhere to universal regulations outlined by Kentucky car insurance requirements. These KY car insurance laws govern the minimum coverage drivers must carry to legally operate a vehicle in the state. Understanding Kentucky auto insurance regulations is crucial for ensuring both legal compliance and financial protection on the road. Bankrate can help you understand the intricacies of Kentucky car insurance laws, providing clarity on coverage requirements, regulations and other essential considerations for drivers across the state.

Car insurance laws in Kentucky

Kentucky drivers must adhere to several state insurance laws. These laws are designed to keep drivers safe and limit their liability. Here are some of the most important Kentucky car insurance laws to be aware of:

  • Drivers must carry minimum coverage insurance: Car insurance is required for all drivers who have a registered vehicle in Kentucky. Drivers must meet the minimum coverage requirements regardless of how often they drive. Insurance policies must be written by an insurance company that is licensed to do business in the state of Kentucky.
  • Drivers must carry proof of insurance: Kentucky insurance law requires drivers to always have proof of insurance in their vehicle at all times. This is because drivers must be able to produce that proof of insurance immediately when it is requested by a law enforcement officer.
  • Single limit policies are allowed: As an alternative to the more typical split limit format for insurance policies, drivers in Kentucky are allowed to purchase a single limit policy, which includes at least $60,000 in liability coverage.
  • Active duty military can use out-of-state insurance: Active duty military members who are currently living in Kentucky are allowed to maintain car insurance coverage that is issued in another state, as long as their vehicle is registered in Kentucky.
  • College students may keep insurance policies from other states: If a student is attending college in Kentucky but is originally from another state, they can keep the insurance policy from their home state while attending school. Out-of-state college students will also not be required to register their vehicles in Kentucky.
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Liability insurance in Kentucky

Kentucky car insurance laws require drivers to carry the following amounts of liability coverage:

As an alternative, drivers can opt for a single limit policy that covers up to $60,000.

Liability insurance offers you financial protection from the damages you cause if you are found at-fault for an accident. To illustrate how liability insurance works, consider this scenario: You accidentally rear-end another vehicle at a stoplight, causing damage to their car and injuring the driver. Your liability coverage would kick in to cover the costs of the other driver’s car repairs and medical expenses up to your policy’s limits. If the costs exceed your coverage limits, you would be responsible for paying the remainder out of pocket.

Is Kentucky a no-fault state?

Yes, Kentucky is a no-fault state. This means that in the event of an accident, each driver’s personal injury protection (PIP) insurance covers their own injuries and damages up to their policy limits, regardless of who was at fault. This system is designed to expedite the claims process, since it eliminates the need to determine fault before payout.

One unique aspect of Kentucky’s no-fault system is that drivers can choose to opt out. By doing so, they retain their rights to sue or be sued for damages after an accident. However, they must express this in writing to their insurance company. For drivers that do not opt-out, they must carry a minimum of $10,000 of personal injury protection.

Penalties for driving without insurance in Kentucky

Driving without insurance in Kentucky is a risky move that can result in hefty penalties. A first-time offense can lead to fines ranging from $500 to $1,000, a jail sentence of up to 90 days, and a one-year suspension of your driver’s license. You will also have to pay a $40 fee to reinstate your license once the suspension period is over.

If you’re caught driving uninsured a second time, the penalties escalate. Fines can reach up to $2,500, the jail sentence can extend to six months, and your driver’s license could be suspended for an additional year. Repeat offenders may even face a license suspension period of two years.

These penalties underscore the importance of maintaining the required car insurance in Kentucky. Not only does insurance protect you financially in the event of an accident, but it also keeps you on the right side of the law.

Additional auto insurance coverage options in Kentucky

Liability-only insurance offers limited coverage. For added protection, many Kentucky drivers purchase endorsement insurance policies. Here are some optional coverages that can be beneficial for drivers in Kentucky:

  • Collision coverage: Collision coverage can help with the cost of repairing your vehicle after you were found at-fault for an accident.
  • Comprehensive coverage: Comprehensive coverage can help repair your vehicle’s damages after non-accident incidents, like fire, water damage or vandalism. When purchased with collision coverage, this is usually referred to as a full coverage car insurance policy.
  • Uninsured and underinsured motorist coverage: Uninsured motorist coverage and underinsured motorist coverage provide financial protection if you end up getting into an accident with someone who does not have insurance at all or who does not have enough insurance to pay for your losses.
  • Gap insurance: If you lease or finance your vehicle and it gets totaled in a covered accident or is stolen and unrecoverable, gap insurance can pay the difference between the new car’s value and the remaining loan balance.
  • Roadside assistance: Roadside assistance coverage usually includes basic roadside vehicle repairs, towing, extrication, fuel delivery, battery replacement and lockout services. Most insurance providers offer this coverage for an added fee.

Frequently asked questions

  • Car insurance is personalized, so the best car insurance company is different for every driver. However, Bankrate’s research shows that Geico, State Farm and Allstate write some of the best policies in the state. To find the company that works best for you, you will need to first identify your insurance needs. Some are looking for the best coverage options, while others are looking for the best customer service or lowest rates. We recommend shopping around and comparing several insurance providers that meet your specific needs to find the perfect match.
  • Car insurance in Kentucky is on par with the national average cost of car insurance. In Kentucky, the average full coverage car insurance policy costs $2,540 per year and the average minimum coverage policy costs $761 per year. In comparison, the U.S. average rate for full coverage insurance is $2,542 per year and $740 per year for minimum coverage.
  • No, drivers in Kentucky who get charged with a DUI/DWI or lose their license are not required to purchase SR-22 insurance, which is a certificate of financial responsibility. However, having a negative strike on your driving record will likely cause your car insurance rate to increase.
  • There are a number of ways you can potentially lower your car insurance premiums in Kentucky:

    • You could consider raising your deductible, which will reduce your premium. However, if you go this route, you should ensure that the amount you select is one you feel comfortable paying on short notice.
    • Maintaining a clean driving record by avoiding accidents and traffic violations is not a quick fix, but will qualify you for some of the lowest possible rates over time.
    • Bundling your car insurance with other policies such as homeowners or renters insurance can also result in discounts from insurers.
    • Installing safety features like anti-theft devices and alarm systems on your vehicle may make you eligible for further discounts.
    • Another great way to lower your rate is to periodically shop around and compare quotes from different insurance providers to help you find the most affordable coverage that meets your needs.
  • The cost of car insurance in Kentucky varies depending on a number of factors. On average, drivers in Kentucky can expect to pay $2,694 per year for full coverage and $774 per year for minimum coverage, as of June 2024. These figures are slightly higher than the national averages, which stand at $2,311 per year for full coverage and $640 per year for minimum coverage. Factors including driving history, age, location, and type of vehicle, can influence individual insurance premiums, so it’s essential for Kentucky drivers to compare quotes from different insurers to find the most competitive rates tailored to their specific circumstances.
Written by
Natalie Todoroff Arrow Right Icon
Writer, Insurance
Natalie Todoroff is an insurance writer and industry analyst for Bankrate. She is based in San Francisco and holds a personal lines insurance license.