2008 Woodie Awards
Laws require basic car insurance for drivers
Stephanie Salmons
Issue date: 3/11/05 Section: Automotive
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Sherrie Phillips, insurance agent and licensed certified insurance service representative, said the best thing people can do while shopping for insurance is to compare prices and the overall coverage of plans because some basic coverage is required.
Phillips said basic liability insurance, which covers "injuries to others and their property," and Kentucky No-Fault are necessary.
"If you're hit by someone who doesn't have insurance, your medical bills will be covered, under certain conditions," Phillips said of the Kentucky No-Fault insurance plan, which can cover the medical bills of the driver and passengers.
Phillips said additional coverage may also be needed.
"If you purchase a vehicle and borrow money from the bank, vehicle damage coverage is required (also)," she said.
The cost of insurance varies from person to person. Phillips said when calculating the cost of an insurance plan, a number of factors are taken into consideration. Some of these factors include: gender, marital status, driving record and vehicle type.
Phillips said insurance companies look at the make, model and year of the vehicle, how many of the same make are on the road, how many like it have been in accidents and how easy it is to get parts for the car's maintenance.
A number of insurance companies offer discounts.
"Everything we see in the insurance industry is starting to gear itself toward credit," Phillips said. "They give a discount on good or excellent credit. If you have poor or no credit, you miss out."
Students who meet grade requirements set up by their insurance provider may even be eligible for a Good Student Discount.
David Harrington, Calloway County attorney, said car insurance has been mandated for Kentucky residents since the 1970s and failure to insure your car could lead to criminal penalties.
"It seems as though (the problem) keeps growing and growing," said Harrington.
Harrington said he deals with an average of eight to 10 insurance-related cases a week.
He said one of the reasons the problem is growing is that individuals come from other states or countries and may not know the state's requirements
Harrington said the penalty for a first insurance offense is between $500 and $1,000, 90 days in jail or both.
A second offense within five years, Harrington said, could result in up to 180 days in jail, $2,500 in fines or both.
Harrington said his recommendation to the judge in such cases usually includes a $500 fine, with $400 suspended, and 10 days in jail, which he recommends to be suspended as well.
Said Harrington: "We need to make sure (drivers) have insurance."
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