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Is auto insurance required?

Why is auto insurance beneficial and is it legally required? Auto accidents are on the rise so the premium is increasing. Consumers are starting to feel the pain in their wallet so they are questioning the necessity of carrying auto insurance. 

There are two components of an auto insurance policy.


Liability insurance is required on your vehicles in all states. It does not provide coverage for your vehicle or passengers. Liability coverage does protect the policy holder from suffering a large financial loss when they are at fault and legally responsible for another persons bodily injury or property damage as a result of an auto accident.

The state of Kentucky only requires auto owners to carry:

  •   $25,000 Bodily Injury Liability per person
  • $50,000 Bodily Injury Liability per accident|
  • $10,000 Property Damage Per Accident.

These are legal limits but that does not mean that they are sufficient to cover incurred expenses.

Many auto accidents incur much more expense than these minimum limits. We never recommend only acquiring the minimum limits. Remember that the main goal of insurance is to protect against catastrophic loss.

Physical Damage:

Many insureds also purchase comprehensive and collision coverages. Comprehensive & Collision coverage is not required unless you have an additional interest in your vehicle.  If you do not purchase comprehensive or collision then you will not have any coverage for damage to your vehicle if you are at fault. Collision covers damage from impact with another object or vehicle. Comprehensive typically covers everything else.

Additional Recommended Coverage:

We also recommend purchasing the following additional coverage:

  • Personal injury protection
  • Uninsured/under insured motorist
  • Towing
  • Rental reimbursement

To learn more about auto insurance click here.