Kentucky is referred to as a choice no-fault state. You will be offered personal injury protection (PIP) of at least $10,000 a part of your car insurance policy, but you have the option to decline the coverage.
When drivers accept PIP as part of an auto insurance policy, they are guaranteeing that they receive medical treatment after a car accident, no matter who was at fault. They also are some limits. They cannot make injury claims or sue at-fault drivers unless a monetary threshold for medical expenses is exceeded (it's currently $1,000) or the accident resulted in serious or permanent injuries or death.
When you reject PIP, you preserve the right to sue for damages with no restrictions. If you and all other drivers on your policy reject PIP coverage, the state requires that you purchase Guest PIP coverage so that basic PIP benefits will be provided to your passengers and pedestrians.
A third option is to keep PIP and preserve the ability to sue for damages -- known as a buy-back provision -- but your liability premiums will probably be higher because others will have the right to sue you, too.
Uninsured and underinsured motorist coverage must be offered as part of your Kentucky car insurance policy, but they can both be declined in writing.
Penalties for no insurance: Your registration will be suspended until proof of insurance is provided.
If you are caught driving without insurance, the penalty is a fine up to $1,000 and/or up to 90 days in jail for a first offense. Subsequent violations, within five years, will receive a fine up to $2,500 and/or up to 180 days in jail.
No Pass/No Drive: Kentucky has a law requiring passing grades for 16- and 17-year-olds who want to be licensed. To receive an instructional permit or license, drivers of this age are required to obtain a school compliance verification form from their school district. If the student drops out of school or is found to be academically deficient, the individual's driving privilege will be suspended. Another incentive: a good student discount is among the biggest discounts for teenagers.
File an insurance complaint online: The Kentucky Department of Insurance allows you to electronically submit a complaint to make the process move faster.
Largest car insurance companies for Kentucky by market share
||Company / Group
||Direct Premiums Written ($)
||Market Share (%)
||State Farm Group
||KY Farm Bureau Group
||Allstate Insurance Group
||Liberty Mutual Insurance Companies
||Progressive Insurance Group
||Berkshire Hathaway Insurance
||State Auto Insurance Companies
||Shelter Insurance Companies
|Source: A.M. Best market share Rankings are based on direct premiums written in 2013.