Minimum car insurance requirements in Kentucky

If you were just in a crash, the first question is usually whether the other driver was insured, and the second is whether your own policy covers what you're facing. Kentucky sets a floor for both. Every vehicle registered here has to carry liability coverage plus no-fault medical coverage. The exact numbers, along with a real change that took effect in July 2026, are worth knowing before you talk to an adjuster.

The numbers you have to carry

Kentucky's minimum liability limits are written as 25/50/25: at least $25,000 for bodily injury to any one person, $50,000 for all bodily injuries in a single accident, and $25,000 for property damage.¹ The property-damage figure rose to $25,000 for policies issued or renewed on or after January 1, 2018. The bodily-injury numbers have stood since the state's no-fault act took shape in the 1970s.¹

The statute also allows an alternative that few drivers use: a single-limit policy of at least $60,000 covering all damages, bodily injury and property together, from one accident.¹ Motorcycles are handled a little differently. A motorcycle owner must carry the liability coverage but is not required to buy the no-fault medical coverage described below.¹

Personal injury protection is mandatory here

On top of liability, Kentucky requires no-fault coverage the statute calls basic reparation benefits, or BRB. Most people know it as personal injury protection (PIP). It pays up to $10,000 per person, per accident for medical bills, lost wages, and replacement services, regardless of who caused the crash.² That $10,000 aggregate is the figure that has to be on every standard policy.

A 2026 law reshaped what sits inside that coverage. House Bill 627 became law as Chapter 149 of the 2026 Acts and took effect July 15, 2026, under the 90-day rule in Section 55 of the Kentucky Constitution.³⁴ It applies to policies issued or renewed on or after that date. Three changes stand out:

• The weekly cap on lost-wage (work loss) benefits went from $200 to $500 per week.³
• The sublimit for funeral, cremation, and burial expenses went from $1,000 to $5,000.²
• PIP medical charges are now tied to the Kentucky workers' compensation fee schedule under KRS 342.035, and providers cannot balance-bill you above it.²

There's a deadline that gives these benefits teeth. Once your insurer has reasonable proof of a loss, a BRB payment is overdue if it isn't paid within 30 days.³

Kentucky lets you choose your side of the no-fault line

Kentucky is one of a few "choice" no-fault states. By registering and driving here, you are treated as having accepted the no-fault system by default.⁵ The trade-off is that you generally can't sue an at-fault driver for pain and suffering unless your medical bills pass $1,000 or your injury involves a broken bone, permanent disfigurement, permanent injury, permanent loss of a bodily function, or death.⁵

You can opt out. Any driver may reject those tort limitations in writing, on a form the Department of Insurance prescribes, filed with the department before an accident happens.⁵ Rejecting restores your full right to sue without the threshold, but it also changes your own benefits, so it isn't a casual choice. The form has to state, in bold, that accepting no-fault limits your right to sue a negligent driver.⁵

Uninsured and underinsured drivers

These two coverages get confused constantly, and in Kentucky they work differently from each other.

Uninsured motorist (UM) coverage is built into your policy by default. State law requires it at limits matching your liability limits unless you reject it in writing, and any rejection is valid for everyone on the policy.⁶ So if there's no signed rejection on file, you have UM coverage even when the declarations page is unclear. You may not learn the other driver was uninsured until you see the Kentucky crash report, which is where their coverage information is recorded.

Underinsured motorist (UIM) coverage runs the other way. Your insurer has to make it available if you ask, but it is not automatic, so you have to request it.⁷ UIM pays when the at-fault driver had insurance but not enough to cover your losses. If you're settling a claim that might trigger UIM, your UIM insurer has a 30-day notice-and-consent window to protect its subrogation rights.⁷ Given Kentucky's low liability floor, UIM is often the coverage that actually protects you.

Penalties for driving without it

Driving without the required security carries real penalties. For a first offense, the fine is $500 to $1,000, or up to 90 days in jail, or both, and the vehicle's registration is revoked with the plates suspended for a year until you show proof of coverage.⁸ A second or later offense within five years can bring license revocation, up to 180 days in jail, or a fine of $1,000 to $2,500.⁸ If you both owned and were driving the uninsured vehicle, you can be penalized as the owner and as the operator.⁸

Is the minimum enough

Legally, yes. Practically, the floor is low. A $25,000 property-damage limit doesn't stretch far against a newer vehicle, and if the at-fault driver carries only the minimum, that cap can leave a gap between what your car was worth and what you collect, including any diminished value once repairs are done. The $10,000 BRB limit also runs out fast once an emergency room and imaging are involved.

Higher liability limits and adding UIM are the two changes that most improve your position after a serious crash. If you're trying to sort out coverage, deadlines, or a fight with an adjuster, it can help to talk with a Kentucky attorney who handles these claims.

This is general information, not legal advice.

Sources

1. Kentucky Revised Statutes, KRS 304.39-110, Required minimum tort liability insurance. https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=46758

2. Kentucky Revised Statutes, KRS 304.39-020, Definitions for subtitle (basic reparation benefits), current version. https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57854

3. Kentucky General Assembly, 2026 Regular Session, HB 627 (became law as Acts ch. 149), legislative record and enrolled text amending KRS 304.39-130 and 304.39-210. https://apps.legislature.ky.gov/record/26rs/hb627.html

4. Constitution of Kentucky, Section 55, When laws to take effect; emergency legislation. https://apps.legislature.ky.gov/Law/Constitution/Constitution/ViewConstitution?rsn=59

5. Kentucky Revised Statutes, KRS 304.39-060, Acceptance or rejection of partial abolition of tort liability. https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30030

6. Kentucky Revised Statutes, KRS 304.20-020, Uninsured vehicle coverage. https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=45815

7. Kentucky Revised Statutes, KRS 304.39-320, Underinsured motorist coverage. https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54466

8. Kentucky Revised Statutes, KRS 304.99-060, Penalties for violation of Subtitle 39. https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49055