Car Insurance Requirements in Kentucky (2025)

Car insurance is a legal requirement in Kentucky. Drivers must carry personal liability insurance with minimum coverage limits of 25/50/25 to register a vehicle and legally drive on Kentucky roads. If you own a car in the Bluegrass State, it’s important to understand the Kentucky car insurance requirements and make sure you have enough coverage.

Here’s what you need to know about Kentucky’s minimum requirements and finding affordable coverage.

Kentucky car insurance requirements

Kentucky drivers have to carry at least 25/50/25 in personal liability insurance. As an alternative to traditional car insurance, drivers can also purchase a policy with a single limit of $60,000.1 

Kentucky is a "choice" at-fault state. This means that drivers need to carry personal injury protection (PIP) to pay for their injuries in an accident. But Kentuckians do have the option to reject PIP coverage and rely on the at-fault driver’s insurance to pay for their injuries.

Below, you can see the state requirements for coverage in Kentucky.

Bodily injury liability insurance

Bodily injury liability insurance covers another person’s injuries when you cause an accident. It pays for their medical expenses, lost wages, and some non-medical costs, like pain and suffering.

In Kentucky, a minimum coverage bodily injury liability policy provides $25,000 in coverage for one person’s injuries and $50,000 for all injuries in an accident. If the losses exceed these coverage limits, you’ll likely have to pay the difference out of pocket.

Bodily injury liability insurance doesn’t cover medical bills for you or your passengers after an at-fault accident. If you want coverage for medical expenses, you can add medical payments (MedPay) insurance or personal injury protection (PIP) to your policy.

Property damage liability insurance

Property damage liability insurance covers another person’s property damage when you’re at fault for an accident. It’ll pay for vehicle repairs as well as damage to public and private property, like fences, mailboxes, and storefronts.2

The minimum car insurance requirements in Kentucky include $25,000 in property damage liability coverage per accident. But keep in mind that minimum coverage may not cover the full cost of an at-fault accident, so experts generally recommend that drivers carry higher liability limits than what’s required.

Like bodily injury liability coverage, property damage liability insurance doesn’t cover your vehicle damages after an at-fault crash. If you want physical damage coverage for your vehicle, you should get a full-coverage insurance policy with collision and comprehensive coverage.

Personal injury protection

Personal injury protection helps cover medical expenses, lost wages, funeral expenses, rehabilitation costs, home medical care, and essential services. Kentucky requires drivers to carry a minimum of $10,000 in PIP insurance. 

But Kentucky is a “choice” no-fault state, so you can choose not to carry PIP coverage.3

If you have PIP insurance and get into an accident, it’ll cover your medical costs no matter the fault. If you choose not to have PIP coverage and someone hits you, you’ll have to rely on their coverage to pay for your injuries. In an at-fault accident, you won’t have any injury coverage without PIP.

Kentucky Automobile Insurance Plan

If you’re struggling to find coverage, you can get insurance through the Kentucky Automobile Insurance Plan (KAIP). This program is available to Kentucky residents who’ve been denied coverage due to factors like their driving record or credit history.

The KAIP provides standard coverages, including bodily injury liability insurance, property damage liability insurance, PIP, and uninsured motorist coverage. Collision insurance and comprehensive insurance aren’t available through the KAIP.

To get coverage through the KAIP, you can apply through any licensed insurance agent in Kentucky. It’s important to know that premiums are likely to be higher than rates from traditional insurers, so you should only use this as a last-resort option.4

Do you need more than state-minimum coverage in Kentucky?

A state-minimum coverage policy with liability-only insurance covers your financial responsibilities when you cause an accident. It covers third-party injuries and property damage — not your own losses.

For more protection, insurance professionals typically recommend getting a full-coverage policy with liability insurance, collision insurance, and comprehensive insurance. Collision insurance covers your vehicle’s repairs after a crash, and comprehensive insurance covers non-collision damage, like theft, vandalism, and hail.

Liability-only insurance in Kentucky is the cheapest coverage you can get. A full-coverage policy has a higher premium, but it helps cover your damages. The average cost of full-coverage insurance in Kentucky is $193 per month, according to Insurify data.

Full coverage is good to have if you drive a new vehicle, lease, or finance your vehicle. Minimum coverage might be sufficient if you drive an older car that’s not worth much or you can’t afford full coverage.

Penalties for driving without proof of insurance in Kentucky

Driving without car insurance is illegal in Kentucky. The state will revoke your registration if you get caught driving without insurance. It costs $40 to reinstate your vehicle registration after a revocation. Additionally, you can receive fines between $500 and $1,000, and you could face up to 90 days in jail, or both.

Cheapest liability-only car insurance in Kentucky

Liability insurance covers your financial responsibilities when you cause an accident that results in another person’s injuries or property damage. In Kentucky, drivers must carry at least 25/50/25 in personal liability insurance.

The average cost of liability-only car insurance in Kentucky is $121 per month, but rates vary by insurance company. Below, you can see the average liability-only quotes from several insurers.

Cheapest full-coverage car insurance in Kentucky

Full-coverage car insurance includes liability insurance, collision insurance, and comprehensive insurance. While full coverage is optional for most drivers, it’s often a requirement if you lease or finance your vehicle.

In Kentucky, the average cost of full-coverage car insurance is $193 per month. 

In the following table, you can see the average full-coverage rates from some of the largest auto insurance companies.

Optional car insurance coverages to consider

Many Kentucky drivers can benefit from adding optional auto insurance coverage that fills the gaps in a standard policy. Here are some of the coverage types you might want to consider: