Each state requires you to carry a certain limit of liability on your auto policy. Liability limits in this case is specifically referring to three coverages. They are: Bodily Injury Per Person, Bodily Injury Per Accident and Property Damage Per Occurrence. Each of these is associated with a dollar amount on your declarations page. The amount listed is the most that the insurance company will pay when you are at fault and cause bodily injury or property damage to another party. So, they are called the liability “limits”.
Kentucky Minimum Liability Limits
In the state of Kentucky, the minimum limits you must carry are:
- $25,000 Bodily Injury Per Person
- $50,000 Bodily Injury Per Accident
- $10,000 Property Damage
- $60,000 Combined Single Limit Bodily Injury and Property Damage
In the industry these options are known as split limits or combined single limits. Most people have split limits. With split limits, you’ll notice Bodily Injury has a limit per person and also per accident. There is a limit the company will pay to individuals in the vehicle, but Bodily Injury will also max out at a certain limit per accident. In an at fault accident with one person in the vehicle, that person could get up to $25,000 in bodily injury. In an at fault accident with four people in the vehicle, no one person will get more than $25,000 in bodily injury coverage and the company will not pay more than $50,000 total in bodily injury for this specific accident.
Is this enough?
When trying to determine the limits you should carry there are a few factors to consider. Everyone wants to save money on their insurance and carrying minimum limits might reduce your premium but at what cost? Healthcare costs are always rising. An accident resulting in a serious injury or death would go through $25,000 in medical bills pretty quickly. $25,000 is enough to cover minor injuries. The likelihood of a serious injury or death may be rare enough you think it is worth the risk to save some money. When was the last time you looked at purchasing a new vehicle or had your vehicle repaired? Have you considered the cost of new vehicles or repairs lately? Repairs for a deer claim for one of our insureds who hit a deer while driving a small car was recently settled at $5,000 after the deductible was paid. Vehicles are expensive any way you look at it. What if you are at fault in an accident with someone driving a BMW, Mercedes-Benz or Lexus?
You also need to take into account your assets. In the event of an at fault accident, insurance is typically the easiest quickest payout to make things right for the injured party. However, with minimum limits, you leave the door open to lawsuits if you own a home, vehicles, have other assets or are a higher income earner.
Our agency does not recommend minimum limits as we do not feel that this is adequate protection even for lower to average income earners. Our agents will be happy to have a discussion with you. We can help determine what level of liability limits would make the most sense for you and provide you with adequate protection. Give us a call. We’re happy to help!