If you want to register and operate a vehicle in Kentucky, you must purchase liability insurance to show that you’ve established financial responsibility for that vehicle.

Ways to Establish Financial Responsibility

In order to establish financial responsibility, you must purchase a liability insurance policy that meets state requirements. You can purchase the policy from an insurance carrier licensed to sell auto coverage in the state.

Kentucky Liability Insurance Requirements for Private Passenger Vehicles

To register and legally operate your vehicle, you must meet the state’s financial responsibility requirements with adequate liability and no-fault personal injury coverage.

Liability Coverage

Liability coverage provides financial protection when another party’s property becomes damaged or another person becomes harmed.

• $25,000 of bodily injury liability per person in an accident

• $50,000 for all bodily injuries per accident

• $10,000 pf property damage liability per accident

Before you purchase an insurance policy, or make changes to your current coverage, be sure to research the variety of other types of coverage available. Liability coverage meets state requirements, but it might not offer the amount of coverage you want (or your lienholder requires).

No-Fault Coverage

Regardless of who is at fault for the accident, no-fault personal injury coverage provides up to $10,000 of financial compensation when an injured person accrues medical expenses, loses wages, or needs replacement services.

Some drivers opt to avoid purchasing no-fault coverage because having it limits the driver’s right to sue the at-fault party. To learn more about avoiding no-fault coverage, contact the Kentucky Office of Insurance (KOI) or your insurance agent.

Electronic Reporting

The KOI and the Department of Motor Vehicle Regulation (DMVR) require insurance carriers to electronically report personal lines of motor vehicle insurance; this system does not, however, include cancellations and non-renewals.

Proof of Insurance and Financial Responsibility

Thanks to electronic reporting, proof of your financial responsibility is on record; however, in addition to carrying your insurance card in your vehicle at all times, you must still provide proof of insurance each time you renew or transfer a vehicle’s registration.

Penalties for Failure to Maintain Financial Responsibility

You face hefty fines and license and registration revocation if you have no proof of insurance.

Kentucky’s Department of Insurance at (800) 595-6053 and Division of Motor Vehicle Licensing at (502) 564-5301 can answer questions you might have about purchasing liability and no-fault insurance, as well as paying your particular fines and other steps to reinstating your license and registration.