Commercial Auto Insurance Minimum Requirements in Kentucky

Determine Whether You Need Commercial Insurance

Consider the following factors to help you decide whether you need commercial coverage for your vehicle(s):

• How many and what kind of vehicle(s) you need to insure

• How the vehicle(s) is being used

• Who drives the vehicle(s)

• Who owns the vehicle(s)

Of course, just because you can answer those questions doesn’t mean you know whether you need commercial insurance. The following situations generally mean you do need to purchase commercial coverage:

• Your business equipment cannot be removed from the vehicle(s).

• You or your business picks up and delivers goods and/or people.

• You have multiple vehicles used by craftsmen or skilled workers (aka artisan use).

• The coverage limits on a personal auto policy are not high enough.

• You need to protect your employees when they use your company vehicle(s) or their own vehicles on company time.

Both the state’s Motor Vehicle Licensing (MVL) and the Office of Insurance can help you determine what kind of insurance you need, as can any insurance agent you contact.

Determine the Required Amount of Coverage

Potential insurance agents will discuss with you the following information about your commercial vehicle:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability limits requirements

In cases involving commercial vehicles that are similar to private passenger vehicles (cars, passenger trucks, vans, etc.), you usually only have to purchase the same amounts of liability insurance as you would if you were insuring your own private vehicle:

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

• $50,000 for all bodily injuries per accident

• $10,000 of property damage liability per accident

However, if your vehicle is more similar to a “big rig,” chances are you’ll need to purchase more commercial coverage.

You’ll also want to talk with your insurance agent about the state’s no-fault coverage. Even though it provides up to $10,000 of financial compensation for the injured party’s lost wages and medical expenses, some vehicle owners choose to opt out because of the limits it puts on their ability to take legal action.

Please contact the MVL, the Office of Insurance, or a state-licensed insurance carrier for more details about coverage for your vehicle.

Purchase a Commercial Policy

When you’re ready to purchase a commercial policy, look for auto insurance companies licensed to sell commercial coverage in Kentucky. Make sure any representative you speak with can answer your questions concerning commercial insurance and offer you a policy that meets the state’s minimum requirements and your coverage needs.

Electronic Reporting

As of 2006, the Mandatory Insurance Reporting Plan required insurance carriers to report coverage. This includes commercial lines of insurance.

Proof of Insurance and Financial Responsibility

Your financial responsibility information is on record, but you must also carry proof of insurance, such as the insurance card your carrier issues you, with you at all times.

Penalties for Failure to Maintain Financial Responsibility

If you can show no proof of insurance, you face a variety of penalties including fines and license and registration suspension or revocation.

Please contact the MVL for details specific to your situation.