A mandatory choice no-fault state, Kentucky offers drivers a variety of options when it comes to auto insurance. If you are not sure what “mandatory choice no-fault” means, do not worry it is all explained below. Only in Kentucky would you get such auspicious options from the state that gave the world Bluegrass music, KFC and bourbon. In the bottom half of states for land area, the state is in the top half for population, although Louisville is its largest metropolitan area with under 1 million people. The fact that Kentucky is above the national average in insurance premiums annually is unfortunate.
Mandatory Insurance State
Like most states in the US, Kentucky does require motorists to carry insurance on any vehicle registered with the Kentucky Transportation Cabinet, or the DOT or DMV as most other states are apt to call it. If you are found driving without auto insurance in Kentucky there are a number of penalties that could be awarded. Driving without insurance in the state can cause fines up to $1000, up to 90 days in jail, suspension of your vehicle’s license plates, and placement into Kentucky’s high risk drivers’ pool.
Although Uninsured and Underinsured insurance coverages are not mandatory in the state but are often presented on insurance plans as optional coverages. There are a number of minimum auto insurance coverages in the state, including:
$25,000 per person per accident for personal injury coverage
$50,000 injury coverage for all people involved in an accident
$10,000 property damage coverage per occurrence
These are minimum insurance amounts, but Kentucky residents can also choose the no-fault Personal Injury Protection (PIP) coverage offered by state insurers.
Choice No-Fault Insurance
Kentucky, with about a dozen other states, offers drivers the option for no-fault insurance coverage. Unlike most other states in the same category, Kentucky makes no-fault optional. This means that if you have the minimum insurance requirements met as listed above you do NOT have to have no-fault insurance. You can opt out of the no fault insurance system in Kentucky.
If you opt out of the no-fault system, you have the option, should you become involved in an accident to sue the at-fault driver. However, denying no fault coverage opens you up to at-fault litigation as well. These lawsuits generally are for personal injury or property damage awards.
Even under the no fault system in Kentucky there are circumstances where your no fault insurance could be deemed exempt from the no fault and opened up to at fault litigation. This happens when your medical expenses from an accident is more than $1000, or you receive a serious injury that includes disfigurement, loss of a bodily function, a permanent injury or a compound, comminuted, displaced or compressed fracture of any bone.
Remember that no fault insurance coverage only extends for personal injuries and anyone can sue for property damage in Kentucky for vehicle damage.
Optional Insurance Choices
As with almost any state there are a host of optional insurance choices that range in price and offerings between insurers. Most insurers offer comprehensive, collision, uninsured and underinsured insurance coverages. Some also may offer rental car coverage, towing coverage and medical expense coverages on some traditional insurance packages.
Kentucky Automobile Insurance Plan
If you have been involved in too many accidents, received too many moving violations, been caught driving without insurance or caused injury or death as a result of a motor vehicle accident you may be labelled a “high risk” driver. These labelled drivers will generally not be open to traditional coverage by insurers in the state and may need to apply to the KAIP for insurance. The KAIP will insure any driver, even if you have been turned down by other insurance companies, although premiums may be significantly higher.
Keeping your Insurance Premium Low
Learn to comparison shop amongst all the available insurers to ensure you receive the best possible quote. As the insurance algorithm may be somewhat different between insurers, providing your information to multiple sources can often yield better savings. In Kentucky there are also a number of discounts available for drivers including:
if you have an anti-theft device on your car
drive low mileage each year
have a multiple policy account
are a good student
or are a good driver.
You could also ensure the lowest premium by avoiding the top ten most stolen cars in Kentucky including most pickup trucks and the Ford Explorer in the larger vehicles and the Impala, Camry, Altima, Accord, and Corolla in the sedan market.
Being proactive in your insurer can help you beat the national average in a state that is consistently above the national average for auto insurance premiums.