Information on your Kentucky Automobile Insurance Statement

By Steve Turner

You should receive a statement periodically from your insurance company explaining your coverages. This statement is a basic breakdown of the coverage you have, and how each part adds to the total premiums. This post will try to explain where or if you can save money on your insurance

In your printout, you will see a number of different sections, including your liability limits, comprehensive coverage, and PIP, or Personal Injury Protection. As the prices for each of these add up, you might get a little nervous, and want to dump some or even all of them. It is important to know that while some of these are optional, most of them are required by law.

The biggest contributor to your price is probably going to be your liability limits. Kentucky requires minimum coverages of $25,000/$50,000/$10,000. Although it is against the law to be insured for less than this, it is a good idea to bump your coverage to something higher like $100,000/$30,000/$100,000. This increases your premium, but it is the last place where you should cut back.

One of the most heavily debated areas is PIP. It is heavily debated between experts whether or not this is important and whether it should be legal. Regardless of what you think is right, it is required to have $10,000 in PIP by the state of Kentucky. This is expensive, but there is nothing you can do about this part.

If you are in desperate need to lower your premiums, comprehensive may be the best area. Although this is a helpful coverage that pays for the damages to your own car, it is not required by law. Although it isn't illegal to drop this coverage, you may be required to keep it by your lien holder if you have borrowed to buy your car.

If you do own your car, you can save money by dropping this coverage, but use discretion. If you drive an expensive car and you total it in an accident, this decision could come back to haunt you because you would have to replace it out of pocket. The only reason you would consider dropping it is if you have a car that isn't worth much. - 20605

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