Minnesota Car Insurance

The Minnesota No-Fault Automobile Insurance Act requires Minnesota residents and nonresidents to cover basic auto liability insurance. Basic car insurance in Minnesota requires personal injury protection, liability protection, and underinsured/uninsured coverage. Personal injury protection pays you and members of your household for medical expenses, lost wages, and replacement services in the event of an accident regardless of fault. Liability insurance covers claims to your policy from another driver injured or claiming damages from an accident for which you are at fault. Underinsured or uninsured coverage pays medical expenses if the other driver is held responsible for an accident but cannot cover the full amount of damages.

Collision protection covers damages to your vehicle when involved in an accident with another vehicle or object. Comprehensive protection covers damages to your vehicle from covered events, like theft. Both collision and comprehensive protection are optional. Minnesota sets a minimum amount of coverage required for all drivers. These are the minimum liability insurance requirements in the state of Minnesota:

Required Coverages in Minnesota:

  • Bodily Injury Liability To One Person: $30,000
  • Bodily Injury Liability To Two Or More People:$60,000
  • Property Damage Liability: $10,000

If you are unable to obtain insurance on the voluntary market, the Minnesota Automobile Assigned Risk Plan (MNAIP) will aid you if you have tried and failed to obtain automobile insurance at rates not exceeding those applicable within the plan in the last 60 days. If you are pulled over and you are unable to provide proof of insurance, you may be charged with a fine or have your license or registration revoked until you can provide proof of insurance.

Determining Your Rate in Minnesota

The average expenditure for auto insurance in Minnesota was $694 in 2009, according to the Insurance Information Institute. Your policy is affected by your age, gender, and marital status since insurance industry statistics indicate certain groups of people have different accident rates. For example, adolescents and seniors have more accidents and are viewed as an increased risk, and therefore pay more for coverage.

Insurance companies also take into account your type of vehicle, your mileage per year, your driving record, where you live and where you drive, and your credit history. Discounts may be applied to your premium, some of which are required by law. Policyholders over the age of 55 who have completed a defensive driving course are entitled to a 10% discount. A 5% discount reduction to comprehensive coverage may be applied for a vehicle equipped with authorized anti-theft protection devices.