This page contains useful tips on the subject of Kentucky car insurance. They can help you make informed coverage decisions and understand your rights if you need to file a personal injury claim.

Added Reparation Benefits- What You Need to Know

When you take out car insurance in Kentucky, you may opt for added reparation benefits, which provide additional medical coverage and pay lost wages should you be in an automobile accident. You will be eligible for these benefits regardless of who caused the accident. Not all insurance companies offer the same coverage limit for added reparation benefits, so be sure to inquire.  

In general, health insurance will cover your medical bills after your PIP benefits are exhausted, but if you don’t have personal health insurance or you have a high deductible or co-pays, then you will want to consider added reparation benefits.

How Insurance Companies Settle Cases in Kentucky

You pay your car insurance premiums, hoping that your insurer will treat you fairly if you need to file a claim. Unfortunately, the real goal of the insurance company is to defeat your claim. They do this by:

    • Delaying. Some adjusters will use delay tactics in hopes of wearing you down.
    • Requesting unnecessary information. Repeated requests for unnecessary documentation is a strategy intended to wear you down and convince you to accept a low settlement offer.
    • Disputing the medical treatment. The adjuster will try to reduce the value of your claim by disputing your need for medical treatment.
    • Dispute the medical charges. The adjuster may try to convince your doctors to accept a percentage of their medical charges. 
    • Telling you that you don’t need an attorney. The insurance company may tell you not to hire an attorney.
    • Acting like your friend. The claims adjuster will make it look like they are watching out for your best interest when they are not.
  • Making false promises. Make sure you get any promises in writing.

A Kentucky car accident lawyer can help you overcome these strategies and get you the compensation you need.

Kentucky Liability Coverage Explained

If you cause a car accident that injures someone else, liability coverage will pay for that person’s out-of-pocket expenses and pain and suffering to a maximum of $25,000 per person or $50,000 per accident if multiple people are injured. 

This coverage is required by Kentucky law. It is important to note that liability coverage does not cover you, only the people injured. If your assets are worth more than $25,000, you should consider purchasing additional coverage.

Buying Insurance When You Don’t Own a Car in KY

You don’t own a car. Does this mean that you can’t purchase coverage for yourself as a driver? 

Not at all. A non-owners’ policy can protect you if you’re in an accident while driving someone else’s car. It will also protect you if you are in a car accident as a passenger and the car owner does not have insurance, or the vehicle that hits you isn’t insured.

A similar type of coverage is extended non-owners’ liability insurance, which is beneficial if you drive a company car and are covered in that car on your company’s insurance policy. This coverage would protect you if you regularly drive your spouse’s or child’s car and are not listed as a driver on their insurance policy.

Kentucky Collision Coverage Explained

In Kentucky, collision coverage compensates you for damage done to your vehicle by an actual collision. It does not cover your medical bills, lost wages, or pain and suffering if you’ve been in an accident or cover damage to the other vehicle.

Deductibles are often offered on collision coverage to lower the cost of your premium. You need to look at the deductible amount that you can afford should you be in an accident. Typically, deductibles for collision are $250, $500 or $1,000.

Kentucky Comprehensive Coverage Explained

Comprehensive insurance provides coverage when your car is damaged by something other than a collision. Examples include falling trees, fire, theft, severe weather events, animals, and even a missile! This coverage will pay for repairs like windshield damage without a deductible, due to the safety issues involved with driving a car in this condition. There is a deductible on other items that may be covered by comprehensive insurance.

Common Discounts Offered By Car Insurance Companies in KY

You might be surprised to know that many insurance companies will offer you certain discounts on your premiums. Eight common discounts are:

  • Good driver discount (no claims for x number of years)
  • Good student discount. The student must typically carry a 3.0 GPA.
  • Family package or multiple policy discount if you have homeowners’ and automobile insurance with the same company.
  • Multi-car discount
  • Passive restraint (airbag) discount
  • Anti-lock brakes discount
  • Driver training discount
  • Vehicle alarm system discount

Ask your insurance agent about these discounts and any others they might offer.

Your Personal Car Insurance and Rental Cars in KY

When you want to rent a car in Kentucky, do you have to buy insurance from the rental company, or will your personal car insurance cover you the entire time?

The answer is that most automobile insurance policies written in Kentucky cover a rental car unless there is a waiver clause. Coverage is the same and all the same deductibles apply, even if you are renting a car outside of Kentucky.

Health Insurance and Your Medical Bills

You’ve been injured in an automobile accident. Will your health insurance pay your medical bills?

No and yes. Your PIP insurance (also called personal injury protection or no-fault benefits) is your primary source of coverage for medical bills arising from a car accident. It will pay for your first $10,000 of medical bills and/or lost wages. Once your PIP is exhausted, your health insurance becomes your primary coverage.

Questions You Need to Ask Your Insurance Agent When Purchasing Car Insurance in Kentucky

When you’re buying a Kentucky automobile insurance policy, there are questions you need to ask your insurance agent to get the coverage you need to protect you and your family if you are in an accident. 

They are:

  • What does this coverage mean?
  • How much does it cost?
  • How much more will it cost if I raise my limits?
  • Is there another company that will give me a better rate?

Asking the right questions will make it easier for you to get the right coverage.

PIP Deductibles- Are They a Good Idea?

If your insurance agent asks you if you want to save some on your car insurance premium by having a PIP deductible, always say no! 

In Kentucky, your insurance is required to have personal injury protection (PIP). If you agree to take out a $1,000 deductible on your PIP benefits, it means that you will have to pay the first $1,000 in medical bills and lost income yourself if you are in a car accident. You also won’t be reimbursed for lost wages.

It’s a great deal for your insurance company, but not so good for you. Don’t do it!

Adding a Teenage Driver to Your Car Insurance Policy in KY

Your teenager has just received their driving permit. Now when do you have to add them to your car insurance policy? 

It’s a question that most Kentucky parents will eventually ask. The answer is that you don’t need to obtain additional coverage or list them on your policy when your teen receives their permit. However, this changes when they obtain their driver’s license. At that time, you must call your insurance agent and add your child as a driver on your car insurance policy.

How Much Automobile Insurance Should You Buy?

When you’re taking out automobile insurance, you want to ensure that you have sufficient coverage for yourself or your family. How much is ideal for you? 

First, be aware that ten times the insurance does not cost ten times the money, although your insurance agent may not tell you that. Ask them how much it would cost to (for example) raise your PIP from $10,000 to $20,000 or uninsured motorist and underinsured motorist coverage from $25,000 to $50,000 or even $100,000.

The bottom line is that you need to buy as much insurance as you can afford to protect you and deliver full compensation if you are in a serious automobile accident. It may be less expensive than you think!

The Kentucky Assigned Claims Plan Explained

The Kentucky Assigned Claims Plan is a statutory benefit that you may be eligible for if you don’t qualify for any other PIP coverage. 

If you are driving or riding in a car that does not have insurance coverage, you may be covered by the Kentucky Assigned Claims Plan, which will pay your medical bills and lost wages up to $10,000. This plan could also cover you if you are a passenger in a cab or bus and don’t have your own car insurance coverage. 

There are several requirements:

  • You must not be the owner of the vehicle
  • You or anyone you live with cannot have car insurance
  • You cannot have any health insurance coverage. 

Towing Insurance- What You Should Know

Few things are more stressful than having your car break down, leaving you stranded along the highway. Fortunately, you can purchase towing insurance as part of your automobile insurance policy.

Private companies, such as AAA, also offer road assistance packages. You should compare the rates and benefits of your insurance company and the private companies and go with the best deal.

Should You Reject or Waive Your No-Fault Benefits?

Has your insurance company advised you to reject or waive the no-fault benefits on your policy? If so, shred that letter now! 

If you reject or waive your no-fault benefits and later get into an accident, your case will not be controlled by the Kentucky no-fault statute. The statute of limitations for filing a claim will be shorter, and you lose access to certain benefits, such as appealing the denial of medical payments. Never, under any circumstances or for any reason, reject your rights under the no-fault statute.

Why is an Umbrella Policy a Great Insurance Deal in KY?

We believe that everyone should have an umbrella policy. However, it is not part of your automobile insurance policy and can only be purchased if the liability coverage on your car is at least:

  • $250,000 per person
  • $500,000 per accident
  • $100,000 in property damage

You must also have homeowners’ or renters’ insurance of at least $300,000. Some insurance companies require limits of $500,000 for young drivers.

An umbrella policy protects you if your other types of insurance don’t cover you for an event, or the coverage is insufficient. You must exhaust the limits of your underlying auto or homeowners’ policy before your umbrella coverage kicks in, but the protection it provides can prevent your home and other assets from being seized to pay a claim.

Stacking Explained

Stacking occurs when you take several different insurance policies and add them together to maximize available benefit amounts. 

For example, you have three cars insured by three different policies, with $100,000 of underinsured motorist coverage on each car. Should you be in an auto accident and your damages total over $300,000, you may be able to collect on all three of these policies.

It is important to note that stacking is case and policy-specific. An attorney will advise you if your policies can be stacked in your particular situation.

What Happens If a Car Almost Hits You and Causes You to Hit Something Else in Kentucky?

If you swerve to avoid a car and hit something else, can you make a damage claim under your uninsured motorist coverage? Possibly, but you should speak to an attorney first. 

Some insurance companies have a “contact rule” in which there must be contact with the at-fault driver in order to recover from your uninsured motorist coverage. You may have a claim against the car that almost hit you if it can be identified. You will have to prove that the car was the real cause of the accident. The best thing to do is speak with an attorney if you have any questions.

Do You Have Questions About Auto Insurance in Kentucky?

At  The Schafer Law Office, we believe that Kentucky motorists should make informed decisions regarding their insurance coverage. If you are ever in an accident, we will help you maximize your financial recovery under the terms of your policy, so contact us online or call 502-584-9511.