Minnesota Car Insurance
Driving and owning a vehicle in the state of Minnesota is a privilege. This privilege comes with several responsibilities, including carrying the proper auto insurance coverage on your vehicle. However, sometimes fulfilling responsibilities can be quite expensive.
If you need to find ways to decrease the amount of your car insurance premium, it is time to use an online auto insurance price comparison tool. These online calculators make it easier than ever to get the best policy. When you use such a calculator, you can be sure you are paying the best possible rates for your auto insurance.
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Mandatory Insurance for Minnesota Drivers
With the small exception of the state of New Hampshire, all states in America require drivers to carry auto insurance. The Minnesota No-Fault Act or Minnesota Statues 65B.48 clearly states that all drivers need to carry no-fault insurance. In addition, Minnesota drivers must carry PIP and uninsured/underinsured motorist coverage.
Auto insurance provides financial and legal protections to all drivers on Minnesota roads. The state of Minnesota has set minimum policy coverage types and amounts. However, drivers are free to purchase auto insurance for additional coverage or to increase their own limits.
Operating or permitting the operation of your vehicle on public roads and highways without insurance coverage in the state of Minnesota is a crime.
If you are pulled over or in an accident without the proper insurance coverage you could face all or any of the following consequences:
- Fines
- Imprisonment
- Revocation of your driver's license
- Revocation of license plates
- Community service
In addition, Minnesota drivers are required to carry proof of insurance with them at all times while driving, according to Minnesota Statutes 169.791. However, if you are caught without proof of insurance, you will be given a grace period to provide proof.
Liability Coverage Requirements in Minnesota
Liability is the most common type of required auto insurance in the United States. It is in place to cover damages you may cause to other people.
Bodily injury liability pays for medical expenses or funeral costs, whereas property liability coverage will be used to cover damages to the other driver's vehicle, house, or additional property that was damaged in an accident that you caused.
Minnesota drivers are legally mandated to carry liability auto insurance at a minimum of:
- $30,000 for injuries to one person
- $60,000 for injuries to two people
- $10,000 for physical damage to the other driver’s
vehicle or property
Minnesota PIP Coverage
Personal Injury Protection (PIP) is included in the no-fault insurance requirements for Minnesota drivers. PIP is an important type of coverage as it will pay for medical expenses, lost wages, and certain necessary household services in the event of an auto accident.
In addition, your PIP coverage will pay for these expenses no matter who caused the accident.
Minnesota law requires drivers to carry a minimum PIP coverage amount of $20,000 for medical care and $20,000 in coverage for wage loss and replacement services such as caregivers and housekeepers. The law requires these coverage amounts to be available to every party involved in the accident.
Minnesota is a No-Fault State
Minnesota is one of many states that have no-fault insurance laws. These laws mean that Minnesota drivers may only file a liability claim against another driver if one or both of the following conditions are met:
- You have incurred a minimum of $4,000 in necessary medical expenses due to the accident
- You have suffered 60 days of disability, a permanent injury, or permanent disfigurement
Even if one or both of these conditions are met, you may only file a liability claim for the amounts that your PIP insurance did not provide for.
Drivers should also take note that there are no conditions that need to be met to sue strictly for property damage that occurred in an accident. Vehicle damage claims fall outside of the Minnesota no-fault system.
Uninsured/Underinsured Motorist Coverage in Minnesota
Although it is illegal to drive in Minnesota without the proper legally required car insurance coverage, an estimated 10.8 percent of people in Minnesota still drive without insurance coverage for one reason or another. This number is just below the national estimated average of 12.5 percent.
In 2012, more than 7,000 people in Minnesota were convicted of not having insurance coverage and nearly 18,000 were convicted of failure to provide proof of insurance.
A 2014 report from the Insurance Research Council revealed that there were over 511,000 motorists in the state of Minnesota on the road without car insurance coverage in 2012. Also in 2012, it was estimated that the cost of uninsured motorist claim payments in the state were nearly $10 million.
These reasons are why the state of Minnesota requires drivers to carry uninsured/underinsured motorist insurance coverage. This type of policy is purchased by drivers to help pay for the cost of liability claims if they are involved in an accident with another party who simply does not carry any auto insurance or does not carry enough to cover the cost of the claim.
Uninsured motorist coverage for Minnesota drivers must cover at least:
- $25,000 for injuries to one person
- $50,000 for injuries to two or more people
Underinsured motorist coverage for Minnesota drivers must cover at least:
- $25,000 for injuries to one person
- $50,000 for injuries to two or more people
Collision and Comprehensive Coverage
While not legally mandated in the state of Minnesota, many drivers will need to highly consider purchasing collision and comprehensive coverage. With these coverage types, you select your deductible and policy amounts. The higher the deductible, the less your premium will generally be.
If you currently lease your vehicle or still are paying the loan on your vehicle, you may be contractually required to carry these coverage types. Check with your bank or leasing company to be sure you are following their requirements regarding auto insurance coverage.
Collision coverage provides for repairing or replacing your vehicle. If there is an accident involving your car rolling over, other vehicles, or another object that damages your car, this coverage is what is needed to pay for repairs. You can generally select a deductible of $250 to $1,000.
Comprehensive coverage pays for other types of situations that may damage or destroy your vehicle, such as:
- Theft
- Fire
- Flooding
- Hail or Wind
- Other weather events
- Hitting wildlife or other animals
- Natural disasters
- Falling Rocks or Trees
Some Minnesota drivers who own their cars outright will choose not to purchase collision or comprehensive coverage. Although this may save money in the short term, this is not a decision to take lightly.
Without comprehensive and collision coverage, you could be left without a vehicle or with very expensive medical bills. You should assess your financial situation before deciding to forgo this type of coverage.
What about insurance coverage for rental cars in Minnesota?
When you rent a car in any state you should treat it as if it were your own vehicle. You are responsible for returning it safely to the rental car company. If an accident occurs, the financial burden falls on you.
However, Minnesota laws require that all auto insurance policies include rental cars for a minimum of $35,000. If you have your own vehicle and a current insurance policy, you are covered for any car you rent in the state of Minnesota. You may also want to check with your credit card company to see if they provide any insurance coverage on rental vehicles.
All Minnesota drivers should check with their insurance companies to make sure they are carrying the legally required types and amounts of car insurance in the state.
In addition, if you lease your car or are still paying on your auto loan, you should check with your bank or leasing company to see if you are required to carry comprehensive and collision coverage.
While carrying the minimum amounts of insurance coverage in the state of Minnesota may be a financial burden for some drivers, you can help reduce that burden by using an online auto insurance price comparison tool.
When you use such a tool, you can make sure you are getting the best price available for your premium and make sure you have all of the legally required car insurance in Minnesota.
Start comparing auto insurance rates now using our FREE online comparison tool below!