Kentucky Car Insurance Laws: Minimum Coverage, Penalties and SR-22

All Kentucky vehicle owners must carry liability coverage of at least $25,000 for bodily injury to any one person, $50,000 for all bodily injury in one accident, and $25,000 for property damage in one accident (25/50/25); a policy with a single limit of $60,000 is also acceptable. Policies must also include basic reparation benefits (personal injury protection, PIP) of up to $10,000 per person per accident, except for motorcycles. Uninsured motorist coverage at the minimum bodily injury limits must be included unless the named insured rejects it in writing. Self-insured owners show documents from the Department of Insurance instead of a policy.

Kentucky is a no-fault (choice) state. Basic personal injury protection (PIP) is required on all vehicles except motorcycles and pays up to $10,000 per person per accident for medical expenses, lost wages and similar costs regardless of fault. Unless a person has rejected the tort limitations, an injured person cannot recover medical expenses, wage loss, other expenses or pain and suffering from an at-fault party unless the injury meets a threshold: $1,000 in medical expenses, a broken bone, permanent disfigurement, permanent injury, or death. A driver may reject the tort limitations by filing a special written form with the Department of Insurance; the rejection stays in effect until the Department is notified in writing of a change, and if everyone in a household rejects, guest PIP must remain on the policy. An owner without insurance cannot collect basic PIP from any source.

Every auto liability policy for a vehicle registered or principally garaged in Kentucky must include uninsured motorist coverage at the minimum bodily injury limits ($25,000/$50,000), but any named insured may reject it in writing; the rejection applies to all insureds, and the coverage need not be added to a renewal or replacement policy from the same insurer unless a named insured requests it in writing. An uninsured vehicle includes one whose insurer is insolvent or whose liability limits are below the state minimums. Underinsured motorist coverage must be made available on request; no minimum limit is required.

Kentucky verifies personal auto insurance electronically through the Kentucky Insurance System: insurers send monthly reports to the Transportation Cabinet listing personal policies in effect, and personal policies are verified automatically at registration. Commercial, self-insured and military coverage must be verified manually by the county clerk. When a vehicle no longer shows insurance, the owner receives an "uninsured notice" letter, and the registration is canceled if proof is not provided within 90 days.

An owner who fails to maintain insurance has the vehicle registration revoked. The vehicle owner and driver are also subject to a fine of $500 to $1,000, up to 90 days in jail, or both. A revoked registration carries a $40 reinstatement fee payable to the county clerk (KRS 186.040(8), as amended in 2024).

When a vehicle is sold between Kentucky residents, the title must be transferred to the new owner within 15 days. The seller signs the back of the title in the presence of a notary. The buyer takes the signed title, proof of Kentucky insurance (dated within 45 days), proof of identity, and money for fees and taxes to the county clerk; titles issued before 2000 may also need Form TC96-182. If the vehicle is not transferred within 15 days, Form TC96-3 (Affidavit of Incomplete Transfer) is used. When a vehicle is sold to an out-of-state resident, the seller returns the Kentucky plate to the county clerk. For a deceased owner, the documents needed depend on whether the title reads "or" or "and" and whether the survivor is a spouse (death certificate, court or probate documents); all wills must be probated. Out-of-state vehicles need a passed sheriff's inspection.

New residents must get a Kentucky driver's license within 30 days of establishing residency; holders of a valid out-of-state license (or one expired less than a year) need no testing, while those expired more than a year need a driver history record, the written knowledge test and a vision screening. Vehicles must be insured with a company authorized in Kentucky before being driven, and must be titled and registered with the county clerk in the county of residence within 10 days of establishing residency (the same page's insurance section gives 15 days to apply for registration). The out-of-state title is converted to a Kentucky title, and vehicles brought from another state need a sheriff's inspection.

Complaints to the Kentucky Department of Insurance's Consumer Protection Division must be in writing; verbal complaints are not accepted. File online through the "File a Consumer Complaint" link on the Department's homepage (insurance.ky.gov), which gives a temporary tracking number, or send the Consumer Complaint form by mail to 500 Mero Street, 2 SE 11, Frankfort, KY 40601, by fax to 502-564-6090, or by email to DOI.ConsumerComplaints@ky.gov. Phone: 502-564-6034. Include your name, address and daytime phone, the type of insurance, and the company or agent involved. A third party can file for you with a signed Third-Party Authorization form.