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Comparing Car Insurance in Indiana vs. Kentucky

Written by Cooper and Friedman on November 15, 2017

car insuranceMoving to another state is stressful. In addition to all the normal stressors like downsizing, packing, and making the move itself, you also have to learn the laws of your new state. Rules regarding car insurance change from state to state, so your rights in the case of an accident may change in your new home state. If you’re moving from Indiana to Kentucky (or vice versa), there are a few differences between what the states require and allow for car insurance policy holders.

Fault-Based vs. No-Fault

Indiana has a fault-based auto insurance system. That means when an accident occurs, the insurance company determines the degree of fault each party has and compensates accordingly. The driver with the lesser degree of fault can file a claim with their insurance company as well as the at-fault driver’s insurance company. Additionally, they may file a lawsuit against the other driver as well as the insurance providers to receive compensation for things like suffering or emotional distress. Fault-based systems give the policyholder the freedom to decide how to pursue compensation, but determining degree of fault is sometimes a long and arduous legal process.

Kentucky, on the other hand, is one of the 12 states that uses a no-fault insurance system. In the event of a crash, the driver not at fault doesn’t have to prove so to file a claim. Insurance companies in no-fault states automatically cover things such as medical bills and lost wages for the party not responsible for the accident. This is covered by the Personal Injury Protection (PIP) portion of your auto insurance policy. However, in no-fault states a driver cannot sue the party at fault for non-economic losses such as pain and suffering.

Car Insurance Requirements

In Indiana, a driver does not legally have to carry liability car insurance. However, most people still buy insurance as the driver at fault is legally responsible for compensation in an accident. This can end up costing an at fault driver tens of thousands of dollars (see below). Purchasing car insurance fills the requirement for financial responsibility if you don’t have that kind of money to spend.

The Kentucky Motor Vehicle Reparations Act requires drivers in the state to carry liability insurance as well as no-fault protection. In order to register your vehicle in Kentucky, you must have insurance. Additionally, if you are pulled over in Kentucky and do not have car insurance you will receive a citation.

One thing Indiana and Kentucky have in common are minimum amounts a liability insurance policy must cover. In both states, insurance must cover at a minimum:

  • $50k per accident when multiple people are injured or killed
  • $25k per person for bodily injury or death
  • $10k per accident for property damage
  • $50k for uninsured motorist coverage

Uninsured motorist coverage financially compensates the no-fault driver for their costs. This is in the case the at-fault driver does not have sufficient insurance to pay.

In Kentucky, one may be “self-insured” if they apply to be so with the Kentucky Transportation Cabinet. In this case, the driver will still receive a certificate of self-insurance to provide for vehicle registration. This certificate is also valid if they are pulled over by police.

If you or someone you love is involved in a car accident, you have the right to pursue legal council. Call the Cooper & Friedman Law Office in Louisville, Kentucky, at 502-459-7555 today or contact us today using our online contact form.

Posted Under: Car Accidents

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