You must carry the mandatory insurance coverage that is required by the state of Kentucky to drive on the roads and highways in this state. The mandatory coverage is only a part of the automobile insurance that is available to protect you, your family and other drivers on the road. Here is some basic information to help you in deciding the levels of coverage you may want to include in your auto insurance policy.
The six major areas of coverage for automobile insurance are what generally makes up most insurance policies. The minimum levels of coverage vary from state to state. In general, these areas are: Bodily injury liability, Property damage liability, Personal Injury Protection, Collision, Comprehensive, Uninsured/Underinsured motorist’s coverage.
In Kentucky registered drivers are required to carry bodily injury liability and property damage liability. Some states allow you to prove financial responsibility through other means but in Kentucky you must purchase insurance through a registered agent.
You may want to review the minimums that are required in Kentucky. There are the highest amounts that your insurance company will pay out due to injuries or death to you or any other people involved in an accident, as well as any property damage. These amounts are only what are required by the state and you can certainly select higher levels of coverage.
Bodily injury liability covers any damages that you may have caused another person if an accident were to occur. This coverage includes medical bills and loss of income. Property damage liability covers the repair and/or replacement of any property that was destroyed as a result of an accident. Property damage liability also covers any “pain and suffering” claims.
Any vehicle that is financed must carry the proper insurance required by the lender to protect their investment. You cannot let the insurance lapse on a vehicle that is being financed. You will probably be required to carry collision and comprehensive coverage. If you do not provide adequate or proof of insurance, the lender will take matters into their own hands and find insurance coverage for you and bill you for it in addition to your regular car payment.
You should carry collision coverage even if you do not still owe money on your vehicle just to protect your investment. Collision insurance covers any damage to your car that was a result of hitting another vehicle, a tree, a telephone pole, etc. Comprehensive coverage protects the value and replacement of your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or there it suffers flood damage.
Not required by law, uninsured motorist coverage pays for any damages that are a result of an uninsured motorist or a hit and run driver. Underinsured motorist coverage comes into play if the other driver, who is at fault, does not have enough insurance to cover you. However, this coverage is not used to cover damages to your car.
When you know what the different types of auto insurance coverage are you can work with your insurance agent and work together to build an insurance policy that will protect you at the highest level.