You often hear commercials about buying car insurance. Many times these commercials offer to “get you insured for the minimum” or something similar. What exactly is meant by “minimum” car insurance? Will minimum car insurance limits protect you?
Kentucky law requires that all registered vehicles on the roadway carry “minimum coverage.” In Kentucky, that coverage is $25,000.00. This insurance provides protection for the person causing an accident, while at the same time providing a recovery for those injured by a car accident. If you’re at fault, minimum coverage will pay for the damage you have done. If you’re the injured person, minimum coverage will compensate you for your injuries.
However, minimum coverage means exactly that, minimum. It provides the least amount available. This may not be enough. If the person’s medical bills, lost wages, or pain and suffering are more than the $25,000.00, then cars carrying minimum insurance are “underinsured”. If your car is underinsured your personal assets, like your home, personal property, or bank accounts might not be protected. That’s because your insurance company is only required to pay as much as you’ve purchased. You are responsible for any damages over that amount.
So, while you may be “legal for less” according to Kentucky law, you might not carry enough insurance to protect yourself. What can you do? You can purchase insurance in amounts above the minimum. Most insurance companies provide coverages of $50,000.00 or $100,000.00 per person, which offer far more protection for more money.
If your purpose is to be legal and you don’t have any assets , then the minimum coverage may be enough. However, to protect yourself against “underinsured” driver’s who purchase minimum coverage, purchase your own “underinsured” motorists coverage from your own insurance company.