Kentucky Insurance: All Your Needs in One Place

Vehicle owners in Kentucky need to have a car insurance policy that meets or exceeds the state’s minimum coverage requirements.

Mandatory Car Insurance Coverage in Kentucky

In Kentucky, all car insurance policies must include:

• Liability coverage: This pays for other people’s injuries or property damage if you are at fault for an accident. Your policy must provide bodily injury liability coverage of at least $25,000 per person and $50,000 per accident and property damage liability coverage of at least $25,000 per accident.
• Personal injury protection (PIP): This pays for medical treatment for you and your passengers if you are injured in a collision regardless of fault. Your policy must include a minimum of $10,000 of PIP coverage.

Car Insurance Options in Kentucky

In addition to the coverage required by law, you can include several coverage options in your policy. Some of the options you are likely to see offered by insurance companies in Kentucky include collision insurance, comprehensive insurance, uninsured motorist insurance, gap insurance, towing and roadside assistance, and rental car reimbursement.

A local independent insurance agent can help you make an informed decision about which types of optional coverage are a good fit for you and your family.

Business insurance is designed to protect the investment you have made in your business by covering against large financial losses in the wake of a disaster. Most small business owners in Kentucky will have the option of choosing between a business owners policy (BOP) or a business insurance policy package.

What a Business Owners Policy Covers in KY

Most low-risk businesses that have fewer than 100 employees and less than $1 million in annual revenues qualify for a business owners policy. These policies are somewhat limited in the types and amounts of coverage they can provide, but they are the most cost-effective option for many small businesses. BOPs include:

• General liability insurance
• Commercial property insurance
• Business interruption insurance

Independent agents are available to explain more about the benefits of a BOP.

What a Business Insurance Policy Package Covers in KY

Larger companies and businesses that have complex coverage needs will need to purchase a business insurance policy package. Buying your insurance this way enables you to pick and choose the types of coverage you want so that you only buy policies that are appropriate for your Kentucky business.

A local independent insurance agent can recommend suitable policies for your company and can shop around to find you the best and most affordable coverage.

Sometimes, employees may be injured on the job or diagnosed with an occupational illness. Workers’ compensation insurance protects employers and employees alike by covering expenses related to these injuries and illnesses. With few exceptions, this coverage is required for all employers in Kentucky.

Policies may be purchased from a commercial insurance provider or through Kentucky’s state-administered fund. Qualified businesses have the option to self-insure, with approval.

Property in this state is at risk for damage caused by severe weather, catastrophes, and property crimes. Fortunately, residents of Kentucky can purchase insurance products designed to cover damage caused by these hazards.

• Severe weather: Damaging weather events that can impact property owners in this state include:
  • Severe storms: These may include windstorms, hailstorms, and electrical storms.
  • Harsh winter weather: Winter storms can damage plumbing and roofs.
  • Tornadoes: An average of 21 tornadoes touch down in Kentucky every year.
• Catastrophic events: Natural and manmade disasters sometimes need to be covered by specialized insurance policies. Residents of Kentucky have a risk of:
  • Floods: Around 15% of properties in KY have a significant risk of flood damage.
  • Earthquakes: There is a very high risk of earthquakes in western Kentucky.
  • Accidental fires: Most insurance policies cover fire and smoke damage.
  • Wildfires: An estimated 42% of properties in KY are at risk for wildfire damage.
• Property crimes: Insurance products can cover burglary, theft, vandalism, and arson.

Because independent insurance agents live and work in your neighborhood, they are aware of the risks you face as a property or business owner in your Kentucky city. They can help to ensure that you are suitably covered against all potential perils.

Homeowners, renters, and business insurance policies specifically exclude coverage against flood damage. Unfortunately, more than 255,000 properties in this state are at risk for sustaining significant flood damage over the next 30 years.

To be protected against financial losses related to overflow events, you can supplement your coverage with a flood insurance policy. Affordable policies are available through the National Flood Insurance Program (NFIP), a program administered by FEMA.

If your property is located in a flood zone and you have a mortgage, your lender will require you to have a flood insurance policy. Otherwise, this coverage is optional. When deciding whether or not to purchase a policy, consider that the average compensation per flood claim in Kentucky is $17,300.

Homeowners, renters, and business insurance policies specifically exclude coverage for damage caused by earthquakes. Property owners can get coverage against this risk by purchasing earthquake insurance.

Ballard, Carlisle, Fulton, Graves, Hickman, and McCracken counties have the highest risk of sustaining significant earthquake damage. This is because of the New Madrid Seismic Zone’s proximity to the western part of this state.

A local independent insurance agent will be aware of the earthquake risks you face in your Kentucky city and can help you find suitable yet affordable earthquake insurance coverage. Talk to an agent near you to learn more.

Sometimes landlords and rental agencies require tenants to carry renters insurance, but more often than not, this coverage is fully optional.

Although it is typically not required, renters insurance is a good idea. It can shield you from financial losses related to property damage, theft, displacement, and even personal liability lawsuits, all at a price that many find surprisingly affordable.

In Kentucky, the average renters insurance policy costs just $168 a year. That is just $14 a month, a small price to pay for the protections these policies offer. Talk to a local independent agent to learn more about what renters insurance can do for you.

If you are a Kentucky resident who has a lot to lose, you may want to consider purchasing umbrella insurance. This is secondary insurance coverage that is designed to significantly boost the liability coverage offered by policies you already have.

Because the coverage offered by an umbrella insurance policy does not kick in until your primary insurance has been exhausted, these policies are very affordable.

Personal umbrella insurance policies enhance the liability coverage you have through other policies like homeowners insurance, renters insurance, car insurance, motorcycle insurance, and RV insurance. This coverage is typically sold in million-dollar increments at a cost of about $200 to $300 a year for every million dollars in coverage purchased.

Commercial umbrella insurance policies are designed primarily to boost your company’s general liability coverage. Business umbrella insurance policies typically cost about $500 a year for every million dollars in coverage purchased.

Shopping for insurance can sometimes be confusing. With so many different products, options, and providers available to you, it can be difficult to decide which is the best choice. That’s why it is helpful to have an experienced insurance agent offering guidance.

Local independent agents can help by answering your insurance-related questions and offering advice. They can also save you time and money by contacting competing providers and obtaining customized insurance quotes on your behalf.

Arrange an obligation-free consultation with an independent insurance agent at one of the more than 330 independent agencies in Kentucky when you are ready to learn more about what these agents can do for you.

Independent insurance agents work with several highly rated insurance providers in this Kentucky. Some of the best include:

• Progressive: The convenience of online services and an award-winning mobile app make Progressive insurance a top choice for many residents of Kentucky.
• Central Insurance Companies: Central has been providing security, protection, and peace of mind to its policyholders since 1876.
• Nationwide: Enjoy worry-free claims, customized coverage, and quality customer service when you purchase a policy through Nationwide.
• Travelers Insurance: Since 1963, Travelers has been providing its customers with reliable coverage through its full line of insurance products.
• Acuity Insurance: Discovery why Acuity Insurance boasts a 95% customer claims satisfaction rating. Request a customized quote today.

Talk to a local independent insurance agent to find out whether one of these or any of our other top-rated partner insurance providers is the best choice for you.