Kentucky Insurance Questions Answered

Popular Questions about Kentucky Car Insurance

Kentucky car insurance rates are slightly higher than the national average, but independent insurance agents can help you find the best rates on the coverage you need. 

The average cost for car insurance nationwide is $1,311. In Kentucky, residents pay an average of $1,341 per year. You'll get the best rates if you compare quotes from multiple companies before you choose a policy.

Even the best Kentucky drivers sometimes find themselves involved in an accident. If you are involved in a collision, here are some ways that your car insurance will help:

  • Fix your car - Not required. This is called "comprehensive & collision coverage."  Though it is not required by the state, it may be required by your lender. 
  • Fix someone else's car – Required/Min. $10,000.  This is called "property damage liability." 
  • Pay your medical bills –Required/Min. $10,000. This is called "personal injury protection" or "PIP." 
  • Pay someone else's medical bills – Required/Min. $25,000 per person / $50,000 per accident. This is called "bodily injury liability."

Every Kentucky driver needs to carry at a minimum a certain level of auto coverage in case of accidents. State law mandates car insurance so that drivers have the funds to pay for damage to someone else's vehicle or cover medical costs after an accident. 

The driver who caused the accident is responsible for covering the cost of damage.

There is a serious problem that all drivers have to think about: Sometimes people drive without any insurance. That means you could be at serious risk if you are hit by a driver who isn't insured. Since Kentucky has a very high uninsured driver rate, you need to make sure you're protected if you get into an accident with one of them.

Uninsured motorist coverage gives you a backup plan, stepping in to pay for car repairs and medical bills if you get into an accident with a driver who doesn't have car insurance.

Popular Questions about Kentucky Home Insurance

The average American homeowner pays $1,173 per year for home insurance, but in Kentucky, the average annual premium is $1,062. Even though insurance is less expensive for homes in Kentucky, there is still room for big savings when you shop around for the best rates. An independent insurance agent can help.

Your home insurance gives you a backup plan in case a catastrophe strikes in your neighborhood. Whether it's a fire, heavy winds or a burglary, you're covered if you have a suitable Kentucky homeowners insurance policy. You can expect your homeowners policy to do the following:

Pay for repairs to your home and your belongings

  • Example: A tree falls on your house, and rain ruins your 60" Samsung TV.

Pay for someone else's injuries or property damage when it's your fault

  • Example: Your kid is playing baseball and accidentally smacks the ball through your neighbor's window.

Pay for temporary living expenses when your home is damaged

  • Example: You need a hotel while your house's roof is being repaired due to a fallen tree.

We can’t be 100% certain, but last year insurance companies spent more than $549 million on home insurance claims in Kentucky. That's a lot of unfortunate events happening to Kentucky homeowners.

Insurance carriers calculate the cost of a home insurance policy by asking, "How likely is it that something bad will happen?" The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. These potential disasters are called "risk." Let’s take a look at how risky Kentucky is compared to the rest of the US.


Burglary rates in Kentucky match up to the national average. Homeowners in areas of Kentucky that have higher crime rates may pay more for their coverage.

  • Average number of burglaries per 1,000 homes in KY: 4.70
  • Average number of burglaries per 1,000 homes in the US: 4.69


The weather in Kentucky plays a large role in damage to area homes. Whether your house is damaged by hail, lightning, heavy winds, or other disasters, if you have the right coverage in place you don't have to worry about the problem causing you significant financial damage.

  • Number of federally declared disasters since 1953: 74
  • Most common cause of disasters in the state: Severe Storms
  • Average number of tornados per year: 24.2
  • Amount paid in home insurance claims in 2016: $549,229,000

Home Values

The estimated cost to rebuild your home will play a large role in how much your home insurance costs. In Kentucky, the average home value is much lower than the national average, which explains why costs in this state are relatively low when compared to other states.

  • Average home value in KY: $135,600
  • Average home value in the US: $188,900

Yes! There are currently 331 independent insurance agents in Kentucky who are ready to help. Did you know that independent insurance agents can give you multiple policy options to choose from? That way, you'll receive completely customized coverage that addresses all of your unique insurance needs.

Popular Questions about Kentucky Business Insurance

Last year, small businesses in Kentucky made $289.7 billion. Without a comprehensive business insurance plan, companies in Kentucky may face large financial losses that eat into their revenues. 

Knowledgeable independent insurance agents can help you identify and mitigate your business's specific risks with a suitable commercial insurance policy package.

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slips and falls: Average cost per claim - $20,000

Kentucky commercial insurance is designed to protect your company from large financial losses associated with property damage, forced long-term closures, liability lawsuits and other exposures faced by businesses in your particular industry.

Here’s what a standard business insurance policy should do:

Pay for Damage to Your Building

  • We call this “commercial property insurance.”
  • Example: A tree falls on your office building.

Pay for Damage to Your Business Property

  • We call this “business personal property insurance.”
  • Example: A fire destroys all your computers.

Pay for Damage to Someone Else’s Property

  • We call this “general liability insurance.”
  • Example: A contractor does a poor job of installing a cabinet, and it falls and breaks a homeowner's kitchenware.

Pay for Someone Else’s Medical Bills

  • We also call this “general liability insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay for Accidents in Company Vehicles

  • We call this “commercial auto insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay for Employee Injuries and Compensation

  • We call this “workers' compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

In some cases, these standard coverages are not enough to properly protect a business against all of its potential risks. Your business may have specific exposures that are unique to its industry, and you may therefore benefit from adding additional coverage options to your commercial insurance plan.

To ensure your company is properly insured, talk to an independent insurance agent who specializes in covering businesses that operate in your particular industry.

While a commercial insurance policy is not necessarily required of business owners, certain aspects of it may be. 

In this state, businesses that have at least one employee must carry workers' compensation insurance. Additionally, businesses that use company-owned vehicles must carry commercial auto insurance, and companies with at least 50 full-time employees must provide them with affordable health care coverage. 

To learn more about the insurance types that you may need to carry for your business, speak with an insurance agent

It primarily depends on how risky your business is. The riskier your business is, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year

Business insurance rates are calculated by factoring in a number of variables, such as the potential for damage to your business property, your liability coverage needs, and the amount and types of coverage you wish to include in your policy package. Policies can vary significantly by business industry, so it is to your advantage to speak with an experienced insurance agent to get help building a suitable policy for your business.

It’s usually wise to work with an independent insurance agent in Kentucky, since they have access to multiple insurance companies. Sometimes it's difficult to find an insurance company that will cover your business.

  • There are 319 insurance agencies in Kentucky that are ready to help.
  • Last year our agents helped 1,751 people.

Popular Questions about Workers' Compensation in Kentucky

The state of Kentucky mandates that all businesses with at least one employee must carry workers’ compensation insurance. There are a few exceptions. It is not necessary to purchase coverage for sole proprietors, LLC members, or partners, though you may if you want to. 

Employers in Kentucky are also not required to cover:

  • Domestic workers in a private residence unless there are more than two full-time workers in the home
  • Employees already covered by federal liability legislation (such as railroad workers)
  • Workers who provide services in exchange for aid or sustenance from a religious or charitable organization

If you are unsure about whether you need to purchase coverage, you can consult with a local independent insurance agent.

Every business is different, and, just like with business insurance, workers’ compensation rates will vary according to the company’s size, industry, and scope. Your cost for coverage will be based mainly on the types of work your employees do and your company’s overall payroll amount. 

Every kind of job is assigned a classification code. Coverage rates for each class code are set by the Kentucky Department of Workers’ Claims in accordance with the job’s associated risks. 

Commercial insurance providers are required to use these standardized rates as a starting point, but they are permitted to offer discounts and incentives of up to 25% based on your company’s safety rating, claims history, and experience modification. That is why comparing quotes is beneficial.

The following are average rates paid per every $100,000 in employee payroll for some common jobs in the state of Kentucky:

  • Roofing contractors: $11,520 per year
  • Tree trimmers/removers: $5,680 per year
  • Plumbing contractors: $1,740 per year
  • Fast food workers: $630 per year
  • Clerical workers: $90 per year

As you can see, it costs far more to insure workers who have a high risk of injury (such as roofers) than workers who very rarely suffer serious injuries in the workplace (such as office workers). 

For help obtaining actual, customized quotes for your particular business, contact a local independent insurance agent.

Workers’ compensation insurance (sometimes referred to as “workman’s comp”) covers the costs associated with on-the-job injuries and occupational illnesses. You can expect your policy to pay for the following:

  • Medical treatment: Workers’ compensation insurance is designed to cover all costs associated with medical treatment and follow-up care for work-related illnesses and injuries. This includes coverage for doctor visits, hospital stays, follow-up care like physical therapy, and any necessary prescription medications.
  • Mileage reimbursement: In Kentucky, injured workers may obtain reimbursement for miles driven or other travel costs for going to and from doctor visits and pharmacies. This includes any reasonable costs associated with taxi, bus, or train fares and tolls as needed.
  • Short-term disability: Employees who need to take off more than seven consecutive days to recuperate from a work-related injury are eligible for short-term disability. Workers’ compensation will pay them a weekly benefit of 2/3 of their average weekly pay until they are able return to work. As of 2017, the state of Kentucky required workers’ comp to pay a minimum of $167 per week and allowed a maximum amount of $835.04 per week.
  • Permanent disability: Serious injuries may leave workers unable to ever return to their jobs. In this case, workers’ compensation insurance can provide weekly compensation in an amount that is dependent on the injured employee’s previous earnings and their impairment rating. Injured workers may collect permanent disability payments for up to 425 weeks if their disability rating is 50% or lower, and for up to 520 weeks if their impairment rating is greater than 50%.
  • Survivor benefits: In the unfortunate event that a work-related injury or illness results in death, workers’ compensation will pay a lump sum of at least $70,000 to the employee’s estate, some of which can be applied toward burial costs. Additionally, the employee’s spouse and dependent children will be entitled to receive weekly benefits in an amount that is based on the deceased worker’s previous earnings as well as the number of dependents left behind.

You can learn more about each of these benefits by talking to a local independent insurance agent.

Occasionally, a workers' compensation claim may be denied. There are a number of reasons this may occur:

  • If the insurer has reason to believe that the injury in question did not actually occur while on the job
  • If the injury occurred at a non-mandatory recreational event sponsored by the employer
  • If there is reason to suspect that the injury was intentionally self-inflicted
  • If the injured employee was under the influence of drugs or alcohol at the time of the incident
  • If the injured employee had refused to use provided safety equipment
  • If the injured worker is not an official employee of the insured

If you believe that your workers’ compensation claim was unjustly denied, the decision may be appealed. You can do this by filing a petition with the Kentucky Department of Workers’ Claims. Your case will be heard by an administrative law judge, who will issue a ruling at the hearing. If you are unhappy with this ruling, you can appeal it by submitting a petition for review to the state.

Popular Life Insurance Questions in Kentucky

You have no legal obligation to purchase a life insurance policy. It’s possible that you can live your entire life without needing one. If you’re young without any dependents and have no debt, you may not need life insurance. The main purpose of this coverage is to provide your survivors with a monetary benefit when you die. Grandparents can leave benefits to their children and grandchildren. Fathers and mothers may purchase life insurance to ensure their children's security.

Even some who believe they don’t need Kentucky life insurance find that, after speaking to an independent agent, it could truly benefit those they love the most. A single woman with no children and substantial savings may think she doesn’t need life insurance, but she also helps pay for a parent’s nursing home fees and medication. If she were to die unexpectedly, who would help care for her parent monetarily? Ask yourself who would pay your debts if you died tomorrow. How would your family carry on? If are you aren’t sure, it might be time to invest in Kentucky life insurance.

Choosing a policy is a personal decision, but it’s helpful to know the benefits of each plan. There are two forms of life insurance coverage:

  • Term life insurance: Term life insurance remains in force for a certain period, 5 to 30 years, and includes a set premium for the length of the policy. If you don’t pass away during the life of the policy, you can renew it. When you select term life, you choose a death benefit amount that you can update when you renew your policy. Term insurance is more affordable than permanent life insurance, and if you purchase it when you’re young and healthy, it will be very inexpensive.
  • Permanent life insurance: Permanent life insurance is more expensive, but it includes an investment component, which is great for someone who is interested in estate planning. This policy is effective until age 100, and you can adjust the death benefit as you like. There are two types of permanent life insurance:
    • Whole life insurance: This type of permanent insurance provides a steady rate of return on cash investments and premiums.
    • Universal life insurance: Premiums and rate of return fluctuate with the market, but you also have the benefit of putting more cash into the account or taking a break from paying your premiums.

  • Residents have a life expectancy of 76 years.
  • The top five causes of death are heart disease, cancer, chronic lung disease, accidents and stroke.
  • 66% of the state is overweight.
  • 29% of the population smokes.
  • For every 100,000 people, 18.9 die in a car accident.
  • For every 100,000 people, 12.8 die due to a firearm.