Kentucky Insurance

About Kentucky Insurance Laws, Health Insurance and Regulations…

The Kentucky insurance industry is strong, able to meet the demands of the state’s markets and t he needs of the consumers therein. The industry and the market are both regulated by the Kentucky Insurance Department, which is responsible for ensuring both consumers and insurance providers do not fall victim to malicious activity. The agency also upholds federal regulations that are in place to govern the overarching insurance industry of the country. Regulations are constantly changing to adapt to the needs of the Kentucky insurance industry and its consumers.

Auto insurance is mandatory in Kentucky. Because of the high cost associated with some comprehensive insurance policies, the Kentucky Insurance Department has determined a minimum level of coverage that drivers may maintain to be considered insured. This coverage must account for $25,000 of bodily injury liability per person in an accident; $50,000 for all bodily injuries per accident; and $10,000 of property damage liability per accident. Kentucky does not require drivers to carry personal injury protection (PIP) coverage.

Kentucky is a no-fault state, meaning that auto insurance companies arKentucky Insurancee compelled to provide up to $10,000 worth of benefits to drivers regardless of who is at fault in an accident.

Because of this, auto insurance prices tend to be higher in Kentucky than in other states. According to the Kentucky Insurance Department, the average cost of auto insurance coverage in the state is $2,013.

Homeowners insurance is not mandatory in the state of Kentucky, though the state does regulate the property insurance industry. Many of the states regulations for this sector are meant to ensure homeowners insurance does not become grossly expensive for consumers, while other regulations ensure that insurance companies can operate freely as businesses and generate profits. The Kentucky Insurance Department does encourage homeowners to purchase adequate insurance protection in order to protect against the financial losses they could see from natural disasters such as flooding.

Per the Affordable Care Act, Kentucky must host  a working health insurance exchange system by 2014. The state has already begun work on developing an exchange system it will manage itself. For its efforts, Kentucky has received financial support from the federal government and will have the ability to govern the exchange program as it sees fit. The Office of the Kentucky Health Benefit Exchange will be primarily responsible for the governance of the system.

Kentucky boasts of a population of more than 4.2 million people, 14% of which currently have no health insurance coverage. On average, employer-sponsored insurance plans can cost consumers more than $800 per year, which can be considered expensive for some. A health insurance exchange is expected to help broaden the access consumers have to affordable health insurance plans.

Kentucky Insurance Resources:

Kentucky Insurance Commissioner: Nancy G. Atkins

Kentucky Department of Insurance Website:

Kentucky Insurance Licensing Info:

File Insurance Complaint:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.