Choosing insurance to protect you and your passengers against the cost of accidents and loss after an accident is always a good idea. The state of Kentucky Auto insurance laws actually prescribe the minimum amounts you may insure yourself for.
These limits ensure that you can pay for costs you may incur as the guilty party in an accident. Kentucky laws use a system called the tort system to determine who pays what after an accident happened. The tort system works as follow: the accident investigation will reveal who caused the accident in the first place. This party is then responsible to pay all the other people involved in the accident as far as loss and or costs they may have as a result of the accident.
Keep in mind that this tort system is not in use in all the states of America or countries abroad. Talk to your insurance broker about coverage should you travel in other states or countries.
You may wonder what costs I am referring to. After an accident there could be injuries to yourself or passengers either in your vehicle or should another vehicle be involved those passengers may be hurt as well. The insurance companies refer to these costs that will pay for injury to a person as bodily injury liability.
Federal law in Kentucky determines that you must be able to pay at least twenty five thousand dollars in compensation to a person that suffered bodily harm in an accident you caused. If more than one person was injured, the law puts a cap on the total amount that you may be liable for. This cap is set at $ 50 000 per accident with more than one person injured.
Some accidents result in property damage. Here we think about the car of the second party being destroyed or the items you may hit during an accident – for instance if you drove into somebody’s wall. This property must be replaced or fixed, and again you as the guilty party will have to pay these costs.
The minimum amount you should take out insurance for to cover you against property damage costs was set at ten thousand dollars.
A final item on your insurance list would be personal injury protection – set at $ 10 000 you know that these claims will be taken care of as well.
Insurance not only protect you against being the guilty party in a car accident, it also serves as a way of repairing your own property or payment towards bodily injuries you may suffer when a person with no insurance causes an accident.