Uninsured and Underinsured Motorist Coverage in Kentucky
You did everything right — drove carefully, followed the rules of the road — and someone else caused an accident that injured you. But when it comes time to recover compensation, you discover the at-fault driver has no insurance, or their policy limits are so low they barely cover your medical bills. This is exactly the situation where uninsured and underinsured motorist (UM/UIM) coverage becomes critical.
What Is UM/UIM Coverage?
Uninsured motorist (UM) coverage pays for your injuries when the at-fault driver has no liability insurance at all. Underinsured motorist (UIM) coverage kicks in when the at-fault driver’s insurance isn’t enough to cover your damages — when their policy limits are lower than your actual losses.
Under Kentucky law (KRS 304.20-020), insurance companies must offer UM/UIM coverage to every policyholder. You can reject it in writing, but if you don’t affirmatively decline it, you’re covered. Many Kentucky drivers have this coverage and don’t even realize it.
How UIM Coverage Works in Practice
Here’s a common scenario: You’re injured in a crash caused by another driver. Your damages total $150,000. The at-fault driver only has $25,000 in liability coverage — Kentucky’s minimum. After exhausting the at-fault driver’s policy, you still have $125,000 in uncompensated damages. If you have UIM coverage of $100,000, you can make a claim against your own policy for up to that amount, recovering an additional $100,000 beyond what the at-fault driver’s insurance paid.
Why This Coverage Matters So Much in Kentucky
Kentucky’s minimum liability coverage requirements are low — $25,000 per person and $50,000 per accident for bodily injury. That’s barely enough to cover a few days in the hospital. According to available data, a significant percentage of Kentucky drivers carry only the minimum coverage, and some drive without any insurance at all despite the legal requirement. UM/UIM coverage is your safety net when the other driver’s coverage falls short.
Stacking
If you have multiple vehicles on your policy, your UM/UIM coverage may “stack” — meaning the coverage limits multiply by the number of vehicles insured. Whether stacking applies depends on your specific policy language and how it’s structured. This can significantly increase the amount of coverage available to you.
If you’ve been in an accident with an uninsured or underinsured driver, call me at (859) 225-9540 or use the contact form.
Joseph D. Buckles is a civil litigation attorney at Buckles Law Office, PLLC in Lexington, Kentucky.
