What grade point average does a teen have to maintain here in Kentucky in order to be eligible for auto insurance discounts?

Melissa

Louisville, KY

There is no law in Kentucky that says one must pass a certain grade point average in order to be eligible for driving. However, there is what they call No Pass, No Drive law that is stated under the KRS 186.400 administration law. This law states that participating schools must notify Kentucky’s Transportation Cabinet about minors who abandon school or are academically unsatisfactory. These students may be evaluated and may have their driver’s licenses dismissed if found to be school dropouts.

However, a driver who was given a driver’s permit while still under the age of 18 should take a driver education program. The driver must pass a written test before being subject to further evaluation for unrestricted license eligibility.

If the teen already has a learner’s permit, he must be able to get auto insurance. However, if he gets into trouble before getting his auto insurance and gets his license dismissed, he may have a hard time getting insurance. This is because auto insurance companies need to make sure that the person they are insuring is eligible to drive (with a driver’s license). If he has a dismissed license or drives without any license, chances are the auto insurance company would be paying for a bigger amount and would make them consider the driver as a high-risk.

I am from Lexington-Fayette, Kentucky, and I heard that Kentucky is a no fault state. But what exactly is a no fault insurance?

Max

Lexington-Fayette, KY

Max, you are right. Kentucky is indeed a no fault state. So, this means that auto insurance policies there are a bit different than the standard ones that work in other states. Presently, there are 12 states that are no fault. These states are New Jersey, Hawaii, Kansas, Florida, Minnesota, North Dakota, New York, Pennsylvania, Michigan, Kentucky, Massachusetts and Utah. But there are three states that are under a choice no fault law and where you are right now, Lexington-Fayette, Kentucky, is among them along with New Jersey and Pennsylvania.

What this means is that the motorists have a choice to reject the lawsuit threshold and just retain the right to sue in court for any injuries that are involved in any vehicular accident. What you have to take note of is the nature of the no fault insurance system because no fault auto insurance is in fact misunderstood widely. No fault auto insurance is just a system that makes it compulsory for the drivers to carry insurance for their own protection, but at the same time it limits the capability of the drivers to sue the other parties or drivers for damages. By law, the no fault system makes your auto insurance companies pay for your damages, which have to be within your policy. The company would cover the payments regardless of who was at fault in the accident that the driver has involved himself in. The other drivers who are involved are going to be covered by their own insurance companies.

The good thing about this is that you are guaranteed immediate medical attention, and it also lowers the legal fees. Actually, there is still a lot more to know about this. Just ask around.

I was contacted by an insurance carrier in Owensboro and they told me that they compared their car insurance rates to our insurance carrier and they said they offer better car insurance rates. They said they were looking at our insurance policy and said we could get a better deal with them. How is it possible that they have access to our auto insurance information?

Desiree

Owensboro, KY

Normally a competing insurance company is not permitted to have access to your current insurance policy. For marketing, typically an insurer will look at your current registered cars and try to rate it with that. Competing insurance carriers/agents can access general information about you like your age, where you live, tax status, etc., however they should not have access to your actual car insurance policy without your permission. They are in violation of insurance privacy regulations if they do.

Most likely the insurance carrier that called you was using a marketing strategy to get your business. As for comparing their car insurance rates with your insurance carriers rates overall, that is possible since some insurers do publish sample insurance rate quotes. For instance, you live in Owensboro Kentucky, here the Kentucky Department of Insurance (DOI) provides a consumer guide that lists insurance carriers authorized to sell auto/homeowners/renters insurance in KY and those insurers have provided rate comparisons for certain situations.

If you believe that the insurance company that contacted you truly did have a copy of your car insurance policy then you can have the KY DOI, the insurance regulator for the state, investigate the issue and you can file a formal complaint with this state agency.

How long does an inexperienced motorists rate apply to insurance companies in Kentucky?  I am a new driver and my auto insurance rates are higher than I was expecting them to be.

Jeff

Louisville, KY

Each insurance companies in Kentucky is different in their rating factors; this includes their insurance rates for inexperienced and young drivers. For some auto insurance companies it is three years for others it can be 5 to 9 years that an insurance company will term and rate someone as inexperienced.

Some companies do not look at the date that the driver was first licensed at all, but use their age as the only rating factor. When the age of the driver is the thing being looked at, typically a motorist under the age of 25 is considered inexperienced.

If you have just recently received your driver’s license you should shop around for car insurance to find the best insurance rates for your car and level of experience behind the wheel of it.