Kentucky Minimum Car Insurance Rules

Kentucky requires every registered vehicle to carry liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, $25,000 for property damage, and basic personal injury protection. Kentucky is a choice no-fault state, so basic PIP generally provides up to $10,000 in benefits without regard to fault. Under KRS 304.39-050, PIP priority begins with the vehicle occupied at the time of the crash, or for a pedestrian, the vehicle that struck the pedestrian, and the statute provides fallback rules when that coverage is missing or does not pay.

Kentucky Minimum Liability Limits

The minimums come from KRS 304.39-110, which sets the required security for tort liability. A policy satisfies the statute with split limits of 25/50/25 or a single limit of at least $60,000 for all bodily injury and property damage in one accident, plus basic reparation benefits, and a motorcycle needs only the liability coverages. The property damage minimum rose to $25,000 for policies issued or renewed on or after January 1, 2018.

The 25/50/25 shorthand breaks down this way in a real crash:

• $25,000 per person for bodily injury: the most the at-fault driver’s insurer pays any single injured person for medical bills, lost wages, and pain and suffering. An injured person with $150,000 in losses collects $25,000 from that policy, and the rest goes unpaid unless another coverage applies, such as underinsured motorist coverage.
• $50,000 per accident for bodily injury: the total cap for everyone injured in one crash. Two seriously injured people splitting $50,000 get $25,000 each at most, because the per-person cap still limits each individual.
• $25,000 for property damage: the maximum for vehicle repair or replacement and other property. A newer vehicle can exceed that limit on its own.

The gap between those limits and the cost of a serious injury is the subject of Kentucky’s outdated minimum insurance limits.

PIP Under Kentucky’s No-Fault Law

Basic PIP pays economic loss after a crash up to $10,000 per person, regardless of who caused the crash. The covered categories are:

• Medical expenses for treatment of crash injuries, within the $10,000 limit.
• Lost wages, subject to a combined weekly limit for work loss, replacement services, and survivor benefits under KRS 304.39-130. The limit is $500 a week for benefits issued or renewed on or after July 15, 2026, and earlier coverage may remain subject to the prior $200 limit.
• Replacement services, such as housekeeping the injured person can no longer perform, within the same weekly limit.
• Survivors’ loss benefits for dependents in fatal crash cases.

Kentucky’s Choice No-Fault System

Kentucky drivers have two options under KRS 304.39-060:

• Keep no-fault, the default. PIP pays first, and a lawsuit against the at-fault driver for pain and suffering is available only after clearing the tort threshold: medical expenses over $1,000, a fracture, permanent injury, permanent disfigurement, or death.
• Reject no-fault in writing or electronically on the Department of Insurance form, filed before any crash it is meant to cover. The driver keeps full tort rights from the first dollar of damages but gives up PIP benefits. The mechanics are covered in how PIP coverage works in Kentucky.

Uninsured and Underinsured Motorist Coverage Rules

Kentucky insurers must include uninsured motorist coverage in every auto liability policy unless a named insured rejects it in writing, under KRS 304.20-020. Underinsured motorist coverage is different: KRS 304.39-320 requires every insurer to make it available on request.

• Uninsured motorist coverage pays the policyholder’s damages when the at-fault driver has no insurance at all. The Insurance Information Institute, citing Insurance Research Council estimates, reports that 15.4 percent of U.S. motorists and 14.1 percent of Kentucky motorists were uninsured in 2023.
• Underinsured motorist coverage pays the gap between the at-fault driver’s policy and the policyholder’s damages. When the at-fault driver carries $25,000 and the losses total $100,000, underinsured motorist coverage can pay the $75,000 difference, up to its own limit.

Both coverages are purchased in split limits like liability coverage, such as 100/300/100. More detail on the underinsured side is in underinsured motorist claims in Kentucky, and rejecting uninsured motorist coverage in Kentucky covers the written rejection.

Penalties for Driving Without Insurance

An owner who fails to keep the required security on a Kentucky vehicle faces fines, jail time, and loss of registration. KRS 304.39-080 requires continuous security on every vehicle registered or operated in Kentucky, and Kentucky tracks coverage through the Kentucky Automated Vehicle Information System (KAVIS). The penalties in KRS 304.99-060 include:

• A fine of $500 to $1,000, up to 90 days in jail, or both, for a first offense.
• Revocation of the vehicle registration and suspension of the license plates for one year or until proof of security is furnished.
• For a second or later offense within five years, revocation of the operator’s license and a fine of $1,000 to $2,500, up to 180 days in jail, or both.