In 2004, Kentucky passed a new law that requires insurance companies to report every covered driver as well as cancellations. This information goes into a database that is updated monthly and the system is known as insurance monitoring. The bill requires that the Department of Vehicle Regulation (DVR) send out monthly notices to motorists whose insurance has lapsed, reminding them to renew their insurance.

If a personal motor vehicle does not show insurance coverage in the database for 2 consecutive months, the DVR will notify the insured that he or she has 30 days to show proof of insurance to the county clerk. If proof is not shown in that time period, the vehicle's registration will be revoked.

In most cases, once the registration has been revoked, the person would have to resend proof of insurance and pay the reinstatement fee of $20 in order to get the vehicle registered again.

The DVR will contact the local county attorney if the formerly insured does not respond to the notification. The attorney is required to immediately begin prosecution of the person whose vehicle has been revoked 3 times within any 12 month period.

As for being cited for driving without insurance, for a first offense the fine is usually between $500 and $1000 or jail time or both. Your KY plates and registration can be suspended for 1 year or until proof of insurance is shown. Also, you could lose your license for up to a year. For more information try contacting the KY Transportation Cabinet.