Requirements for the limits of car insurance are set by the state of Kentucky for those who are residents. Each state decides on their own what limits are best for the state as a whole. The state government requires that you get these limits, and that insurance companies sell you at least that which they require.

While most companies will quote you their cheapest rates, which are the minimums required, every driver must understand their own needs and be willing to pay a little more if they need to so they can get the coverage that best suits them. In the state of Kentucky, it is required that you have a minimum medical coverage of $25,000 for each individual in the accident, if a maximum amount able to be paid at $50,000. It is also required that you have $10,000 of protection in property damages.

While the minimum required by Kentucky is $25,000/$50,000 $10,000 you must evaluate your own situation and decide if you need more coverage than that. Many drivers choose to put their limits much higher, even though it makes the premiums more expensive, in order to be fully covered in the case of a catastrophic accident.

What makes Kentucky different from most other states is the fact they it is considered a "no-fault" state. In other words, when there is an accident, no one is cited as being at-fault. Every separate party is responsible for their own damages caused by the accident.

Having the "no-fault" policies established are helpful for a few different reasons. It cuts down on the number of lawsuits and the chaos that it brings. A number of the states currently practicing other policies are currently considering changing the "no-fault" system.

There are twelve states in total that practice under the "no-fault" system. Some of these states include New Jersey, Kansas, Pennsylvania, and Utah. All of the states, including these twelve allow insurance companies to sell based on the "Managed Competition System." Under this system each company is able to set its own rates according to their costs, but it is monitored by each state so prices don't become too high.

Although they are able regulate insurance prices so they do not become too much, if you have a lot of tickets and accidents on your driving record, or if you drive an expensive car, you can expect to have high premiums. If you are concerned with the price of your premiums, being a safe driver and driving a less-expensive car can put your monthly payments around $100 a month. When shopping around for insurance, make sure that you are being offered the limits you need while having it be affordable at the same time.