Minnesota Car Insurance
Minnesota car insurance laws are written to make sure you are financially covered in case of a car accident, regardless of who is at fault.
Read below to learn more about MN auto insurance requirements, programs, rates, and discounts.
Minnesota requires all owners of cars driven and primarily used in Minnesota to have all of the following:
- No-fault insurance.
- Liability insurance.
- Uninsured motorist insurance.
No-fault coverage, or personal injury protection (PIP), will pay for your medical bills and loss of income after a car accident, regardless of who caused the accident.
PIP coverage extends to your household family members.
Minnesota car insurance laws require you to have the following minimum limits on your PIP:
- $20,000 for medical coverage.
- $20,000 for loss of income.
Your PIP will also cover you if you are a passenger in somebody else’s car. Passengers of your car will be covered by their own PIP.
Minnesota also requires you to have liability auto insurance.
Liability insurance helps pay for injuries and property damage that result from a car accident for which you are found at-fault.
Your liability car insurance must meet the following minimum limits:
- $30,000 for injuries per person.
- $60,000 for total injuries per accident.
- $10,000 for property damage.
After a car accident you primarily caused, the other driver’s PIP will take effect first. Your liability coverage will cover costs that exceed the other driver’s no-fault insurance.
While car insurance is required in Minnesota, many drivers continue to drive without proper insurance. If you get into an accident with one of these drivers, uninsured motorist coverage will help cover your medical costs that exceed the limits of your PIP.
If you get in a car accident with an at-fault underinsured driver, your underinsured motorist coverage will help pay for medical costs above your PIP and the at-fault driver’s liability insurance.
The minimum limits for your uninsured/underinsured motorist coverage are:
- $25,000 for injuries per person.
- $50,000 for total injuries in an accident.
Optional Car Insurance
While Minnesota requires you to have a substantial amount of car insurance, there areoptional coverage types you may consider for additional protection.
Most MN auto insurance companies offer the following types of coverage:
- Collision – This will help cover accident-related damages to your car.
- Comprehensive – This will help cover non-traffic related damages to your car, e.g., vandalism.
- Rental car.
- Roadside assistance.
Minnesota does not require you to have collision and comprehensive car insurance; however, if your car is being financed, your lender can require you to purchase these coverages as part of your finance agreement.
If you do not purchase comprehensive and collision coverage, your lender can purchase it for you and charge you for it.
This is generally much more expensive than purchasing comprehensive and collision on your own.
Proof of Insurance in Minnesota
You must carry proof of insurance in your car at all times. If you are pulled over by a police officer, you must show your proof of insurance.
Valid forms of proof of insurance include:
- Your car insurance ID card.
- Copy of your insurance policy.
- A letter from your insurance carrier.
Driving without proof of insurance can get you cited for a misdemeanor.
If you have a current car insurance policy at the time of your traffic stop but do not have your proper proof of insurance, you may be able to get your charges reversed by providing the court with proof of insurance before the deadline on your citation.
If you do not have car insurance, you face the following penalties:
- Possible imprisonment.
- A $200 minimum fine.
- Revocation of your driver’s license.
- Revocation of your vehicle registration.
To reinstate your driver’s license after a car insurance violation, you must pay a $30 fine to the DVS.
Minnesota Automobile Insurance Plan
While car insurance is required for all drivers, auto insurance companies have the right to deny coverage to drivers who are considered high risks.
The Minnesota Automobile Insurance Plan (MNAIP) helps guarantee access to car insurance for high-risk drivers.
All Minnesota car insurance companies must participate in MNAIP. The risk of insuring drivers through MNAIP is shared among all the companies in the program.
If you are unable to find car insurance through the standard market, you can apply to MNAIP through any car insurance agent. Any company that denies you standard car insurance coverage must offer you coverage through MNAIP.
MNAIP car insurance generally carries much higher rates than those of standard car insurance. It is smart to continue shopping for the cheapest car insurance while you are in the plan.
Car Insurance Fraud
One of the largest expenses for Minnesota car insurance companies comes from dealing with insurance fraud. The bulk of those costs are passed down to consumers through increased premium rates.
Car insurance fraud often involves:
- Staging car accidents.
- Falsifying insurance documents.
- Reporting false injuries.
- Exaggerating costs of car repair.
If you suspect car insurance fraud, you can report it to the Minnesota Department of Commerce by calling (888) 372-8366.
For information on how to report suspected insurance fraud online, visit the Department of Commerce website.
Determining Your Premium
Several factors go into determining your car insurance quotes.
In Minnesota, car insurance companies are allowed to use the following factors to calculate your premium:
- Driving record.
- Credit score.
- Your car’s:
- Deductibles (the amount of a claim for which you are responsible).
- The higher your deductible, the lower your premium.
Car Insurance Discounts in Minnesota
When comparing quotes for insurance, don’t forget to inquire about possible discounts.
Most auto insurance companies in Minnesota offer the following discounts:
- Homeowner’s discount.
- Good student discount.
- Safe driver discount.
- Multi-car discount.
- Safety device discount (e.g., airbags).
- Anti-theft discount.
- Accident prevention course discount.
- You must be at least 55 years old to qualify for this minimum 10% discount.
The best way to keep your premiums low and ensure cheap car insurance rates in the long term is to drive safely and obey all traffic laws.