What You Need to Know About Kentucky Automobile Insurance
Each month, most insurance companies send out a statement to each insured, letting them know their insurance levels. As you receive this statement, you will discover that they break down the premium in to specific categories, letting you know where your money is going. This article will give you information on how to assess this and see if you can save money.
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.
It is the law in Kentucky to have minimum liability limits of $25,000/$50,000/$10,000. You cannot dip below these limits, however most people decide to have their limits much higher. The average person should have limits of $100,000/$300,000/$100,000 to protect themselves adequately. Although this increases your premium, this is not a good place to look to save money, if you do it could come back to haunt you.
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 own your vehicle, this may or may not be a good option. If the replacement cost of your car is $20,000 then it probably isn’t a good risk to save $200 a year at the risk of having to replace it at $20,000. However, if your car is worth $2,000 it may be worth the risk.
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This entry was posted on Friday, January 16th, 2009 at 8:01 am and is filed under Auto Insurance Quotes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.