In 2019, there were 80.636 car accidents in Minnesota. This resulted in 27,260 deaths and 364 injuries. Despite a decrease in fatalities, drunk driving, distracted driving, and speed-related accidents still pose a problem on Minnesota’s roads.
Minnesota drivers are required to have car insurance. This protects them financially and legally from common liabilities. Minnesota’s car insurance laws should be understood by every driver to ensure adequate coverage.
Minnesota laws regarding car insurance
Minnesota car insurance laws can be understood easily, but there are many laws that are different from those in other states. Individuals who plan to move to Minnesota and current Minnesota drivers should read the laws to ensure they comply with the state requirements.
- Minnesota law requires that all drivers have minimum car insurance. No matter how frequently the car is driven, any vehicle registered in Minnesota must have insurance.
- Drivers must have no-fault coverage: Minnesota, a state of no-fault, requires drivers to have no-fault and basic liability insurance.
- Drivers must have proof of insurance. Drivers in Minnesota must always have proof of insurance. Both electronic and physical proof of insurance documents is acceptable. When law enforcement requests it, drivers must produce the proper documentation.
- You can cancel your policy for fraud or non-payment. Drivers who fail or refuse to pay their monthly premium or disclose certain information to an insurance company can have their policy cancelled at any time.
Minnesota has liability insurance
Minnesota insurance law requires that all motorists have liability insurance. Uninsured/underinsured motorist liability coverage is also legally required in Minnesota. Minnesota’s minimum car insurance requirements include 30/60/10. This includes:
- $30,000 per person in bodily injury liability insurance
- $60,000 per accident in bodily injury liability coverage
- $25,000 in uninsured/underinsured bodily injury liability coverage per person
- $50,000 in uninsured/underinsured bodily injury liability coverage per accident
- $10,000 per accident in property damage liability coverage
Minnesota drivers who have minimum coverage insurance will pay the lowest rate for car insurance. It is not a good idea to opt for liability-only coverage. Car accidents can be expensive and Minnesota’s minimum coverage requirements may not cover all costs.
If you cause an accident, and your vehicle suffers $20,000 in damage, you will be responsible for the $10,000 you have to pay out of pocket. You would be responsible for the remaining $20,000. If the driver is injured and has to pay $50,000 in medical bills, then you will have to pay the rest.
Minnesota drivers considering minimum coverage insurance need to be aware that liability-only coverage does NOT include protection for their vehicle. You would be responsible for all costs incurred if your vehicle is damaged or in an accident.
Is Minnesota a no fault state?
Minnesota is a state that has no fault. No-fault states allow drivers to have their insurance company pay for medical bills and lost wages following an accident. This applies regardless of who caused it. In a fault state, the insurance company responsible for the compensation of the other driver is responsible.
Minnesota is a state that does not require drivers to have Personal Injury Protection (PIP) coverage. Minnesota’s no-fault insurance covers up to $20,000 for medical expenses and up $20,000 for non-medical expenses like lost wages. For more protection, drivers have the option of increasing their PIP coverage.
Driving without insurance in Minnesota can result in severe penalties
Driving without insurance is a offense. A first offense will result in the driver’s license being suspended and the driver being fined $200. The court may permit the driver to do community service if the driver is unable to pay the $200 fine.
Drivers who have their license suspended in Minnesota must purchase SR-22 Insurance to restore their license. Drivers with a suspended license but no vehicle can purchase non-owners insurance or be added to an existing policy.
Minnesota offers additional auto insurance options
Minnesota drivers purchase coverage that goes beyond what Minnesota’s auto insurance requirements require. These policies are not included in the Minnesota auto insurance requirements.
- Collision Insurance: collision insurance covers your vehicle’s repair costs after an accident. Minnesota’s average collision insurance cost is $257/year.
- Comprehensive Insurance: Comprehensive covers your vehicle for non-accidental claims like theft or falling objects. Minnesota’s average cost for comprehensive insurance is $197/year.
- Roadside Assistance: Drivers can access to towing, fuel delivery, towing, and lockout services.
- Rental Car Reimbursement: Rental vehicle reimbursement pays for your car to be repaired after a covered accident. This coverage is automatically included in some insurance policies.
Questions frequently asked
Which Minnesota insurance company is best?
Every driver will find the best Minnesota car insurance company different. It all depends on the type of coverage that you require, what level of coverage you require and what your budget. Country Financial, Geico and State Farm are some of the top-rated Minnesota car insurance providers.
What is the cost of Minnesota car insurance?
The average full-coverage car insurance policy in Minnesota costs $1,582 per annum, while the $522 average minimum coverage policy is $522 per annum. Minnesota’s car insurance rates are slightly lower than the national average. The average American driver pays $1738 per year for full coverage insurance.
How can I save money when buying car insurance?
Minnesota drivers can save money on car insurance by getting discounts, increasing credit scores and raising their deductible. Comparing multiple quotes and shopping around can help you find the best price.