It is required by Kentucky, and all other states in the United States, that all drivers own a certain amount of Auto Insurance. Each state has decided what their specific limits will be. As different Auto Insurance companies sell you insurance, it is mandated that they sell you at least what the state requires.
Although each insurance company will sell you at least the minimum amount required, it is important to understand what you are buying and if it is enough for your needs. In Kentucky, the minimum requirements are $25,000/$50,000 $10,000. This means that they will cover the medical bills of each person up to $25,000 with maximum coverage of $50,000. The minimum property damage coverage is $10,000.
While the minimum required by Kentucky is $25,000/$50,000 $10,000 you must evaluate your own situation and decide if you need more coverage than that. Many drivers choose to put their limits much higher, even though it makes the premiums more expensive, in order to be fully covered in the case of a catastrophic accident.
What makes Kentucky different from most other states is the fact they it is considered a “no-fault” state. In other words, when there is an accident, no one is cited as being at-fault. Every separate party is responsible for their own damages caused by the accident.
Being a “no-fault” state is beneficial because it lessens lawsuits and the confusion that comes with them. It also takes care of other undesirable problems that come with accidents where one particular person is considered at-fault. Many of the states with other policies in place are considering making a change.
Currently, there are twelve states total that have the “no-fault” system currently incorporated. These states include Kansas, New Jersey, Pennsylvania, and Utah. All fifty states have incorporated the “Managed Competition System.” This system allows each company to competitively set their rates, but they are regulated by the state so they do not become excessively high
The State of Kentucky uses the “Managed Competition System” to ensure the public in general doesn’t pay too much for insurance, if you choose to drive and expensive car, or if you are a high-risk driver, you will end up paying a lot on your premiums. If you are on a budget and concerned about these prices, you can stay away from high premiums by driving a cheaper car and being responsible.