Kentucky Auto Insurance Requirements 2026 | No-Fault Guide

Kentucky requires 25/50/25 liability plus $10,000 PIP coverage. Learn the state's unique choice no-fault system, tort options, penalties, and recommended coverage levels.

Quick Answer: Kentucky Minimum Auto Insurance

Kentucky requires all drivers to carry liability insurance plus PIP coverage. The state-mandated minimums are:

Coverage Type	Minimum Required
Bodily Injury per Person	$25,000
Bodily Injury per Accident	$50,000
Property Damage	$25,000
Personal Injury Protection (PIP)	$10,000

This is commonly written as 25/50/25 plus $10,000 PIP. Kentucky is a "choice no-fault" state with unique tort options that affect how you can sue after accidents.

What Kentucky Law Requires

Under Kentucky Revised Statutes § 304.39-080, all Kentucky drivers must:

Maintain liability insurance meeting minimum requirements
Carry PIP coverage (Personal Injury Protection) of at least $10,000
Choose a tort option (Full Tort or Limited Tort)
Carry proof of insurance at all times
Report insurance to AVIS (Kentucky's electronic verification system)

Understanding 25/50/25 Coverage

Bodily Injury Liability - $25,000/$50,000

This covers injuries you cause to other people:

$25,000 maximum per injured person
$50,000 maximum per accident (total for all injured people)
Pays for medical bills, lost wages, pain and suffering
Does NOT cover your own injuries

Property Damage Liability - $25,000

This covers damage you cause to others' property:

Other vehicles you hit
Buildings, fences, mailboxes
Other personal property
Does NOT cover damage to your own vehicle

Personal Injury Protection (PIP) - $10,000

Required in Kentucky (cannot be waived)
Covers your medical bills regardless of fault
Also covers passengers in your vehicle
Pays funeral expenses up to $1,000
Covers lost wages (80% up to $200/week)
No-fault coverage (pays quickly)

Kentucky's "Choice No-Fault" System

Kentucky has a unique insurance system called "choice no-fault":

Two Tort Options

When you purchase insurance, you must choose:

Option 1: Basic No-Fault (Limited Tort)

Lower premiums
Your PIP coverage pays your medical bills
You cannot sue for pain and suffering unless:
- Medical expenses exceed $1,000
- Serious injury (permanent disfigurement, fracture, loss of body part)
- Death
Most affordable option

Option 2: Full Tort (Added Personal Injury Protection)

Higher premiums (typically $100-300 more annually)
You can sue for pain and suffering after any accident
No monetary threshold to file lawsuit
Better legal protection
Recommended if you want full legal rights

How to Choose

Choose Basic No-Fault if:

You want lower premiums
You have good health insurance
You're willing to accept limited lawsuit rights

Choose Full Tort if:

You want full legal rights
You're concerned about serious accidents
You want to sue for pain and suffering
Extra $100-300/year is worth the protection

Kentucky's AVIS Electronic Verification

Kentucky uses the Automated Vehicle Information System (AVIS) to monitor insurance:

How It Works

Insurance companies report coverage to AVIS electronically
System monitors all registered vehicles daily
If coverage lapses, you receive a Notice of Suspension
You have 10 days to respond
Failure to respond results in license/registration suspension

What Triggers Suspension Notices

Policy cancellation for non-payment
Switching insurers without coverage overlap
Letting policy expire without renewal
Even one day gap in coverage triggers notice

Kentucky's system is very strict - maintain continuous coverage.

Penalties for Driving Uninsured in Kentucky

Kentucky imposes serious penalties for uninsured driving:

License and Registration Suspension

First Offense:

License suspended until proof of insurance provided
Registration suspended
$500 reinstatement fee
Must file SR-22 for 3 years

Subsequent Offenses:

Higher reinstatement fees
Longer suspension periods
Possible jail time

Criminal Penalties

If caught driving uninsured:

Offense	Fine	Jail Time
First	$500-$1,000	Up to 90 days
Second	$1,000-$2,500	Up to 6 months
Third+	$2,500-$5,000	Up to 1 year

If You Cause an Accident While Uninsured

Immediate license suspension (up to 1 year)
Must pay for all damages personally
Victims can sue you directly
Wages can be garnished
Assets can be seized
SR-22 required for 3 years after reinstatement

Why Kentucky's Minimums Aren't Enough

Kentucky's 25/50/25 limits are below national averages and often insufficient:

Real-World Cost Examples

Expense	Average Cost	KY Minimum Covers
Emergency room visit	$3,500	$25,000 per person
Serious injury treatment	$50,000-$100,000	$25,000 per person
New car average price	$48,000	$25,000 property
Multi-car accident	$75,000+	$50,000 total

Personal Liability Scenario

Example: You cause an accident injuring two people. Person A needs $40,000 in medical treatment, Person B needs $30,000. You total a $35,000 vehicle.

Total damages: $105,000
Your policy pays: $60,000 maximum ($50,000 BI + $25,000 PD, but BI is capped per person)
Actual payout: $25,000 (Person A) + $25,000 (Person B) + $25,000 (vehicle) = $75,000
You owe personally: $30,000

The injured parties can sue you for the remaining $30,000.

Recommended Coverage for Kentucky Drivers

Insurance experts recommend higher limits:

Minimum Recommended: 50/100/50

Coverage	Amount	Annual Cost Increase
Bodily Injury	$50,000 / $100,000	+$80-150
Property Damage	$50,000	+$40-80
PIP	$10,000 (minimum)	Required

Better Protection: 100/300/100

Coverage	Amount	Why
Bodily Injury	$100,000 / $300,000	Adequate for serious accidents
Property Damage	$100,000	Covers luxury vehicles and multiple cars
PIP	$10,000 minimum	Consider higher limits

Additional Coverages to Consider

Uninsured/Underinsured Motorist (UM/UIM)

Not required but highly recommended
~13% of Kentucky drivers are uninsured
Protects you when hit by uninsured drivers
Should match your liability limits
Typical cost: +$100-200/year

Higher PIP Limits

State minimum is only $10,000
Serious injuries easily exceed this
Consider $25,000-$50,000 PIP
Especially important if you have passengers

Collision Coverage

Pays to repair your vehicle after accidents
Required if you have a loan or lease
Subject to deductible ($250-$1,000)

Comprehensive Coverage

Covers theft, vandalism, weather, animal strikes
Required if you have a loan or lease
Subject to deductible

Medical Payments (MedPay)

Supplements PIP coverage
Covers medical bills beyond PIP limits
No-fault coverage
Typical limits: $5,000-$10,000

Kentucky-Specific Insurance Rules

PIP Coverage Details

Kentucky's $10,000 PIP minimum includes:

Medical Expenses:

Up to $10,000 per person
Covers reasonable and necessary treatment
Pays for hospital, doctor, surgery, therapy
Covers passengers in your vehicle

Lost Wages:

80% of gross wages up to $200/week
Maximum 52 weeks of benefits

Essential Services:

Services you can't perform due to injury
Household tasks, childcare, etc.
Up to $25/day

Funeral Expenses:

Up to $1,000 maximum
Included in $10,000 total limit

Proof of Insurance Requirements

Acceptable proof:

Insurance card (paper or digital)
Policy declarations page
Digital proof on smartphone (Kentucky accepts electronic proof)
Insurance company verification letter

When you need to show proof:

Traffic stops
Accidents
Vehicle registration or renewal
License plate renewal
County clerk transactions

SR-22 Requirements in Kentucky

Certain violations require an SR-22 certificate:

When SR-22 Is Required

DUI/DWI conviction
Driving without insurance
License suspension for points
Serious traffic violations
At-fault accident while uninsured
Multiple reckless driving offenses

SR-22 Requirements

Requirement	Details
Duration	3 years typically
Minimum coverage	25/50/25 plus PIP (state minimums)
Filing fee	$25-50 one-time
Rate increase	50%-200% higher premiums
Continuous coverage	Cannot lapse or restart 3-year clock

How to Get SR-22 in Kentucky

Contact insurance company offering SR-22
Purchase or modify policy meeting minimums
Insurer files SR-22 with Kentucky DMV electronically
Pay license reinstatement fees ($500+)
Maintain continuous coverage for full 3-year period
Any lapse restarts the 3-year clock

Kentucky Auto Insurance Costs

Average annual premiums in Kentucky:

Coverage Level	Average Annual Cost
State minimum (25/50/25 + PIP)	$900 - $1,400
Recommended (50/100/50 + PIP)	$1,100 - $1,700
Full coverage (100/300/100)	$1,500 - $2,500

Louisville and Lexington have higher rates than rural areas due to higher claim frequency.

Factors affecting your rate:

Age and driving experience
Driving record (tickets, accidents, DUI)
Location (urban vs. rural)
Vehicle make, model, and year
Credit score (Kentucky allows credit-based insurance scoring)
Annual mileage
Coverage levels and deductibles
Tort option chosen (Full Tort costs more)

Frequently Asked Questions

Is car insurance required in Kentucky?

Yes. Kentucky law requires all drivers to carry minimum liability insurance of 25/50/25 plus $10,000 PIP coverage. Electronic monitoring ensures compliance.

What's the difference between Basic No-Fault and Full Tort?

Basic No-Fault (Limited Tort): Lower premiums, but you can only sue for pain and suffering if medical bills exceed $1,000 or you have a serious injury.

Full Tort: Higher premiums (typically $100-300 more), but you can sue for pain and suffering after any accident, regardless of injury severity.

What happens if my insurance lapses in Kentucky?

Kentucky's AVIS system detects lapses within days. You'll receive a Notice of Suspension giving you 10 days to respond. Failure to respond results in license and registration suspension plus a $500 reinstatement fee.

Can I drive in Kentucky with out-of-state insurance?

Yes, if you're visiting. However, if you become a Kentucky resident, you must obtain Kentucky insurance within 30 days of establishing residency or registering your vehicle.

Do I need uninsured motorist coverage in Kentucky?

Not legally, but strongly recommended. About 13% of Kentucky drivers are uninsured. UM coverage protects you when hit by uninsured or underinsured drivers. Insurers must offer it, and you must sign a waiver to decline.

Does Kentucky require PIP even if I have health insurance?

Yes. Kentucky law requires $10,000 minimum PIP coverage regardless of your health insurance status. PIP covers medical bills, lost wages, and essential services quickly without waiting for fault determination.

What is the "serious injury" threshold for lawsuits?

Under Basic No-Fault, you can sue for pain and suffering only if:

Medical expenses exceed $1,000, OR
You suffer permanent disfigurement, fracture, loss of body part, permanent injury, or death

With Full Tort, you can sue after any accident.

Key Takeaways

Kentucky requires 25/50/25 liability plus $10,000 PIP coverage
PIP coverage is mandatory and cannot be waived
Choice no-fault system - choose Basic No-Fault or Full Tort
AVIS monitors insurance electronically - lapses caught immediately
Recommended coverage: At least 50/100/50 with UM/UIM
Penalties are severe: $500 reinstatement fee, SR-22 for 3 years
Full Tort option costs $100-300 more but preserves lawsuit rights
Uninsured motorist coverage highly recommended (13% uninsured rate)

Important Disclaimer

This guide provides general information about Kentucky auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements and laws can change. Always verify current requirements with the Kentucky Transportation Cabinet and Kentucky Department of Insurance.

Consult with a licensed insurance professional for advice specific to your situation.

Last verified: January 2026

Sources: Kentucky Transportation Cabinet, Kentucky Revised Statutes, Kentucky Department of Insurance, AVIS system documentation