Automobile and Personal Liability Insurance
Personal auto policy structure
Part A is liability; Part B is medical payments; Part C is uninsured and underinsured motorists; Part D is coverage for damage to your auto, split into collision and other-than-collision. "Your covered auto" includes owned vehicles, newly acquired autos within a notice window, trailers, and temporary substitute autos. Non-owned auto coverage responds to a rented or borrowed personal auto used in business, but a vehicle furnished for the insured's regular use is excluded.
Kentucky specifics
Kentucky requires minimum liability limits of 25/50/25, personal injury protection, and uninsured motorist coverage at the liability limits unless rejected in writing. Kentucky is a choice no-fault state, meaning the insured selects a tort option that affects the right to sue for non-economic damages. Confirm current statutory limits before the exam, since amounts can change.
Traps
- UM/UIM pays only for the negligence of an uninsured or underinsured driver; collision pays regardless of fault, subject to a deductible.
- PIP is no-fault and pays medical and wage-loss benefits regardless of fault; it does not substitute for liability coverage.
- Business use of a personal auto is narrower than many candidates assume.
Worked example
An insured with 25/50/25 limits injures two people, each with $40,000 in damages. The per-person limit pays $25,000 to each, totaling $50,000, which is exactly the per-occurrence cap. The insured remains personally exposed for the excess above the limits.