Kentucky Car Insurance Requirements (Updated for 2025)

Driving in Kentucky requires proof of financial responsibility, including minimum liability insurance and Personal Injury Protection (PIP). Kentucky is a “choice no-fault” state. If you decline PIP, you fall back to a tort (at-fault) system. Non-compliance can lead to fines, suspensions, jail time, and registration revocation.

Minimum Required Coverage in Kentucky

As of 2025, Kentucky mandates the following minimum auto insurance:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $25,000 per accident
• Personal Injury Protection (PIP): $10,000 per person

You may choose a single-limit policy of $60,000 instead of separate BI and PD limits.

No‑Fault PIP vs. Tort Options

Kentucky is a no‑fault state—your PIP covers your medical bills and lost wages up to $10,000 regardless of fault. You can reject this coverage in writing, but doing so shifts you into a fault-based system with different rules about lawsuits and recovery :contentReference[oaicite:1]{index=1}.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Insurers must offer UM/UIM coverage at minimum limits of $25,000/$50,000—but you can decline it in writing. This protects against drivers with no insurance or insufficient coverage for bodily injury only—Kentucky does NOT require UM property damage :contentReference[oaicite:2]{index=2}.

Stacking UM/UIM across multiple vehicles is allowed, depending on policy terms. :contentReference[oaicite:3]{index=3}

Optional Coverages to Consider

• Comprehensive Coverage
• Collision Coverage
• Medical Payments (MedPay)
• Rental Reimbursement
• Roadside Assistance

If your vehicle is financed or leased, lenders typically require full coverage.

Proof of Insurance Requirements

You must carry proof of insurance—either paper or digital—and present it if requested during traffic stops or accidents. Officers typically verify coverage electronically through state databases :contentReference[oaicite:4]{index=4}.

Penalties for Driving Without Insurance

• 1st offense: $500–$1,000 fine; registration canceled if not corrected in 30 days
• 2nd offense: Up to 90 days in jail and registration revocation
• Possible license suspension, reinstatement fees, and jail time

You may also face out-of-pocket costs if uninsured, since your own PIP may not cover all expenses.

Insurance Costs & Real-World Context

Minimum policies in Kentucky can be affordable—e.g., USAA averages ~$38/month for minimum liability—but many residents opt for higher limits given medical costs and uninsured driver risk :contentReference[oaicite:5]{index=5}.

Defensive driving and bundling discounts are widely available—check with local insurers for details.

Compare Auto Insurance Quotes in Kentucky

Premiums depend on age, location, driving record, vehicle type, and coverage. Use the tool below to compare quotes from leading Kentucky insurers:

🔍 Start Comparing Kentucky Car Insurance Quotes →

FAQs

Is Kentucky a no‑fault state?

Yes—no-fault PIP applies unless you opt out. After waiving, you move to fault-based rules for lawsuits and recovery.

Is UM/UIM coverage mandatory?

No—you may decline UM/UIM, but insurers must offer it in writing.

Can I stack UM/UIM coverage?

Yes—Kentucky allows stacking across multiple vehicles if separately purchased; some policies include anti-stacking clauses.