It is required to all drivers in the state of Kentucky to carry with them proof of owning auto insurance at all times. Law enforcement officers will request to see this proof and you must comply by handing your insurance ID card. This card is emitted by your insurance company at the moment you acquire an auto insurance policy with them. Also you may need to demonstrate the ownership of financial responsibility when renewing your registration, selling your vehicle or transferring to another state.

Begging in January 2006, and established by the HB 29 mandate, Insurance companies are required to electronically send information to the Department of Motor Vehicles Regulations regarding new insurance policies, cancelations and renewals. Only reported policy is Liability.

The state of Kentucky considers as mandatory the ownership of auto liability insurance policy for the following minimum requirements:

• $25,000 for one person bodily injury,
• $50,000 for more than one person bodily injury, and
• $10,000 for property damage

This state also considers Uninsured and / or Underinsured Motorist coverage as mandatory, up to the amounts of $25,000 for one person and $50,000 for an accident (more than one person), or matching your liability coverage for one person and more than one bodily injury / death.

While Liability insurance pays for damage and injuries the responsible party may cause to others, Uninsured / Underinsured helps pay when the driver responsible for the accident does not own enough coverage to pay for the bills or completely lacks of it. It is also used for hit and run situations.

Most common optional coverage may include Comprehensive and Collision. Comprehensive coverage takes care of expenses caused by actions not related to a collision with another vehicle, such as hitting wildlife on the road, falling objects, flying debris, and weather related accidents, like hurricanes, floods, tornados, etc.
Collision will cover only the costs of any physical damage caused to your car in an collision, no matter if it was with another moving vehicle or a non moving object, like light poles, fences, walls or a parked vehicle.

Collision coverage as well as comprehensive will not pay for any medical or legal expenses, this coverage types are there only to help fix your vehicle after an accident. Keep in mind that your liability insurance policy will not pay for any damage or injuries the insured may suffer; it will only pay for those he causes to other parties.

Kentucky is a no-fault insurance state, this means that if you are involved in an accident and you have no fault in it, your insurance will pay for your medical expenses, ambulances, rehabilitation, etc. So if you have an accident, even if it's not your fault, your carrier will pick up the costs. Some states allow then carriers to go after the responsible party and claim some of the money back from them. This is positive for the insured because it will help them get paid quicker since no fault is needed to be established before receiving the money.