Car insurance is required throughout the United States, and varies within state lines by the providing company. You have to carry the minimum coverage required by law, but vehicles that are rarely or never driven may qualify for a reduced type of coverage, usually called Leisure or Pleasure Vehicle coverage.
Kentucky minimum insurance requirements include Liability and No-Fault coverage. The No-Fault coverage provides up to $10,000 in coverage for bodily injury, lost wages, and replacement services regardless of who is at fault in the accident. Kentucky allows you to omit this type of coverage if you meet certain requirements set by the Kentucky Office of Insurance, but purchasing the coverage is usually the easiest way to meet state requirements.
Liability insurance provides protection against bodily injury and property damage if you are at fault in the accident. By law, you are required to have $25,000 bodily injury per person and $50,000 per accident. You are also required to carry a minimum of $10,000 of property damage coverage per accident. These are minimum values and may not be sufficient for all circumstances such as multiple severe injuries, high-value vehicles, or accidents which involve litigation.
Pleasure vehicle insurance is available for vehicles that are only driven a limited number of miles per year. This type of coverage is equal to the required state minimums but is only available for vehicles that are driven a few thousand miles or less annually. If you put more than the covered number of miles on the vehicle, you will be required to pay the regular, full rate.
Some insurance companies have begun to offer Pay-Per-Mile insurance or some variation of it. This type of coverage is based on your actual use of the vehicle and may be lower than even Pleasure Vehicle coverage. Similar coverage's may entail installing an electronic device in your vehicle to verify your driving habits. Since this type is not available from all insurance companies, you will have to check with your preferred insurer to find out if it is available in your state.