The penalties in Kentucky can be two-fold for you if you are the owner of an uninsured vehicle and caught operating it. The penalties for driving without insurance in KY include fines, jail time and suspension of your driver's license.

Kentucky Revised Statutes (KRS) KRS 304.39-080 is titled Security Covering Motor Vehicles and in Paragraph 5 notes in part that every owner of a motor vehicle registered in this Commonwealth or operated in this Commonwealth shall continuously provide with respect to the motor vehicle while it is either present or registered in this Commonwealth, and any other person may provide with respect to any motor vehicle, by a contract of insurance or by qualifying as a self-insurer, security for the payment of basic reparation benefits in accordance with this subtitle and security for payment of tort liabilities, arising from maintenance or use of the motor vehicle.

KRS 304.99-060 next gives the penalties for driving without insurance here it states:

(1) (a) The owner of any vehicle who fails to have in full force and effect the security required by Subtitle 39 of this chapter shall:

1. Be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000), or sentenced to not more than ninety (90) days in jail, or both;

2. Have the registration of the motor vehicle revoked and the license plates of the vehicle suspended for a period of one (1) year or until such time as proof, in a form satisfactory to the commissioner, is furnished that the security is then and will remain in effect; and

3. For the second and each subsequent offense within any five (5) year period, have his operator's license revoked in accordance with KRS 186.560, and may be sentenced to one hundred and eighty (180) days in jail, or fined not less than one thousand dollars ($1,000) nor more than two thousand five hundred dollars ($2,500), or both.

Paragraph 2 goes on to say:

(2) A person who operates a motor vehicle without security on the motor vehicle as required by Subtitle 39 of this chapter shall:

(a) Be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) or sentenced to not more than ninety (90) days in jail, or both; and

(b) For the second and each subsequent offense within any five (5) year period, have his operator's license revoked in accordance with KRS 186.560, and may be sentenced to not more than one hundred eighty (180) days in jail or fined not less than one thousand dollars ($1,000) nor more than two thousand five hundred dollars ($2,500), or both.

Paragraph 3 then goes on to say that if the person who operates a motor vehicle without security on the motor vehicle as required by Subtitle 39 of this chapter is also the owner of the motor vehicle, the person shall be subject to penalties under both subsection (1) and subsection (2) of this section.

So you may be facing both sets of fines (of up to $2500 each) and/or jail time of up to 180 days and the Commonwealth of Kentucky should also be suspended your license since this is your second offense of driving without insurance in their state.

As for also being in an accident, if you were at fault than of course you are personally responsible for the damages you caused to others. If you fail to pay for the minor damages to the other person's car than likely your license will be suspended in KY for a longer period of time, possibly until you do pay for the damages.

If you are from Indiana and your vehicle is registered there than you may also face penalties from your home states for having a lapse of auto insurance and driving without insurance.

Indiana Legislative Code 9-25-4-1 states that a person in Indiana may not register or operate a motor vehicle if financial responsibility (FR) is not in effect for the vehicle. The operator of a vehicle that is without insurance in Indiana is subject to a 90 day license suspension or 1 year suspension if this is a repeat violation of the FR law within 3 years.

Driving without insurance in Indiana is a Class A infraction, unless you have had prior convictions for this violation then it is considered a Class C misdemeanor. Beyond getting your license suspended, the driver of an uninsured vehicle could also be assessed points according to IC 9-25-8-5. The number of points assessed shall be determined by the point study committee based on an evaluation of the situation.

In Indiana Class A infraction can come with a fine of up to $10,000 while a person who commits a Class C misdemeanor can be imprisoned for a term of up to sixty (60) days and may be fined not more than five hundred dollars ($500).

To get your license reinstated, if it is suspended due to driving without insurance, you will likely have to show proof of auto insurance. Here you can get quotes for Kentucky and Indiana auto insurance. Where you need to insure your car will depend upon which state you are living in and have your car registered.