Minimum Car Insurance Coverage Requirements in Minnesota

If you are a Minnesota driver or will soon become one, it is important to know the car insurance laws and requirements. The state of Minnesota has mandatory insurance in order to protect all people out on its roads.

While car insurance can be expensive, using an online price comparison tool can help you to find the best premium possible.

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Minimum Car Insurance Requirements in Minnesota

Minnesota state law requires all drivers to carry the minimum requirements, including:

• Liability – $30,000 for injuries to one person, $60,000 for injuries to multiple people, $10,000 in property damage for another person’s car or property
• Personal Injury Protection (PIP) – $40,000 per person per accident, including $20,000 for non-medical services and $20,000 for medical expenses
• Uninsured/Underinsured Motorist – $25,000 for injuries to one person, $50,000 for injuries to more than one person

What if I do not have insurance coverage or do not meet the legally required amounts?

Minnesota has an uninsured driving rate of 10.8 percent, which is below the national average of 12.6 percent.

If you are driving without insurance or less than the minimum amount required in the state of Minnesota, you are taking a serious risk. If you are stopped by law enforcement for any reason or in an accident, you will face the following penalties:

• Vehicle impoundment
• Fines between $200 to $1,000
• License suspension
• Car registration suspension
• Mandatory community service hours

You can also face the same consequences for being insured but not having the mandatory minimum amount of coverage. Additionally, you may be subject to civil litigation if you caused significant damage to someone else or their property.

Why is car insurance coverage necessary?

While you may think that you are the only one affected if you choose not to obtain car insurance, this could not be further from the truth. Car insurance policies offer financial protection for not only the driver but for other drivers, passengers, pedestrians, and bicyclists out on Minnesota roads.

Accidents can be extremely expensive, sometimes even coming with six-figure price tags once all physical and property damages have been accounted for. Most people cannot afford to pay for something that extreme out of their own pockets, so auto insurance is relied upon.

In addition, drivers who do not have coverage or the right amounts of coverage drive premiums up for everyone who abides by the car insurance laws. This is because the drivers will insurance have to take on the financial burden of those who do not.

Minnesota is cracking down on uninsured drivers. If the previous reasons were not enough to motivate you to get car insurance on your vehicles in Minnesota, a new law that went into effect on January 1, 2016, may be.

Previously, in order to register your vehicle in this state, you only had to say that you had secured an insurance policy. Now, drivers must provide proof that they have insurance in order to obtain a car registration or renewal tags.

Car Accident and Insurance Stats for Minnesota

If you think accidents only happen to other people, consider the following Minnesota specific facts and statistics from 2015:

• There are 205 accidents per day
• These accidents are responsible for one death per day as well as 282 injuries
• Minnesota pays the price of $4,858,135 per day for these accidents
• A total of 74,772 accidents were reported to the Minnesota Department of Public Safety (DPS) in 2015
• For 2015, a total of 411 people lost their lives on Minnesota roadways and another 29,981 were injured
• 138,057 vehicles and 181, 663 people were involved in these Minnesota accidents
• The estimated price tag for all of these accidents was $1,773,219,300 for the state of Minnesota alone
• Based on an observational study, seat belt use was estimated at 94 percent for the year

In 2010, 411 people were killed due to vehicle accidents in Minnesota. The trend was headed back down, however, 2015 is expected to have 405 deaths attributable to car accidents once the final numbers have been worked out.

In addition, there were 61 motorcycles killed in 2015, compared to 40 in 2014. Pedestrian deaths rose to 40, up from 16 the previous year, and 10 bicyclists were killed, compared to only 5 in 2014.

Drunk driving was a factor in 25 percent of accidents, while distracted driving and speeding each caused 20 percent of accidents in Minnesota.

Should I purchase more than the state minimum coverage?

While you can meet the requirements of the law by purchasing the mandatory amounts of insurance coverage for your vehicle, you may not be fully protecting yourself financially.

For example, even though drivers are only required to carry $30,000 in coverage in bodily injury liability for one person if the accident is bad enough their medical bills could easily exceed that $30,000. Once that money runs out, you are the one responsible for the bill.

Additionally, most drivers will want to consider getting collision and comprehensive coverages added to their policy. Since liability only covers the damages of other parties, and not your own, you could be left without a working vehicle without these types of coverages.

Drivers in Minnesota should consider their options and finances carefully when making a decision on whether or not to purchase coverages over the legally mandated minimums.

Shopping Around for Auto Insurance in Minnesota

If you need to purchase auto insurance or are simply looking for a better rate for the already existing coverage on your vehicle, your first step is to do some comparison shopping.

Just as if you were making a large item purchase, like a car, or an appliance, you would shop around for the best price, comparison shopping is the wise thing to do when it comes to auto insurance coverage.

The quickest and easiest way to comparison shop is to use an online price comparison tool. This will allow you to see the policies and premiums offered by several different car insurance companies in your state and make a wise decision.

When comparing quotes, make sure you are comparing identical policies.

For instance, a policy with a smaller deductible will usually be priced higher than one with a larger deductible. A policy without comprehensive and collision coverage will be more expensive than a policy that only has liability. Not all auto policies are the same.

When choosing a car insurance company, consider not only price but also the following factors:

• Customer service – You should feel like you are a priority and treated with respect when it comes to your auto insurance company. In essence, they are working for you. Your questions should be addressed in a timely manner, as should any claims you submit.
• Financial stability – You will want to select an auto insurance carrier that has the means and the reputation of being able to pay their claims. A sound financial reputation will ensure that you will get your money’s worth when paying your premiums.
• Ratings – You may also want to check the Better Business Bureau and your state insurance office to see if there have been any reports against a potential insurance company.
• Licensing – Your insurance company needs to be licensed in order to do business and provide service in your state. Not being licensed is an illegal practice.

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