Kentucky Auto & No-Fault Coverage Requirements
This chapter covers the coverage rules a Kentucky producer must know to place personal auto correctly: the compulsory liability limits, Kentucky's choice no-fault system, and personal injury protection.
Compulsory Auto Liability Limits
Kentucky requires minimum auto liability limits of $25,000 bodily injury per person, $50,000 per accident, and $25,000 property damage (25/50/25), per the Insurance Information Institute state financial-responsibility chart. These are minimums; insureds may and often should buy higher limits. Because the legislature can raise minimums, verify the current figures with the Kentucky Department of Insurance before quoting them as fixed.
Kentucky's Choice No-Fault System
Kentucky is a choice no-fault state. Personal injury protection, called basic reparation benefits (BRB), pays an insured's own accident-related medical and wage-loss expenses regardless of fault, and a monetary tort threshold limits lawsuits for smaller injury claims. Importantly, a Kentucky motorist may reject the no-fault threshold in writing to preserve the unrestricted right to sue. Producers should explain this election to clients. Confirm the current threshold and required benefit amount with the Kentucky Department of Insurance rather than quoting a fixed dollar figure.