Auto Insurance in Minnesota – Everything You Need to Know

Auto insurance is an essential part of owning and driving a vehicle. In Minnesota, there are specific requirements for the minimum coverage you need to have. However, with so many insurance providers out there, it can be challenging to know which one is right for you. In this article, we will give you everything you need to know about auto insurance in Minnesota.

What is Auto Insurance?

Auto insurance is a contract between you and an insurance provider. You pay a premium, and in exchange, the provider agrees to pay for certain expenses if your vehicle is damaged, stolen, or you cause an accident. Depending on the coverage you select, you may be covered for damage to your vehicle, injuries sustained in an accident, and liability for damages you cause to others.

Auto insurance can be confusing because there are many different types of coverage available. Some types of coverage are required by law, while others are optional. Below are the different types of coverage available.

Liability Coverage

Liability coverage is required by law in Minnesota. This coverage pays for damages and injuries you cause to others in an accident. It does not cover damages to your own vehicle or injuries you sustain in an accident.

Liability coverage is divided into two types: Bodily Injury Liability (BIL) and Property Damage Liability (PDL). BIL pays for injuries sustained by others in an accident you cause, while PDL pays for damage to property.

Personal Injury Protection (PIP)

Personal Injury Protection, or PIP, is another required coverage in Minnesota. This coverage pays for medical expenses and lost wages for you and your passengers if you are injured in an accident, regardless of who is at fault.

Uninsured/Underinsured Motorist (UM/UIM) Coverage

Uninsured/Underinsured Motorist, or UM/UIM, coverage is not required in Minnesota, but it is highly recommended. This coverage protects you if you are in an accident with someone who is not insured or does not have enough insurance to cover the damages.

Collision Coverage

Collision coverage is optional coverage that pays for repairs to your vehicle if it is damaged in an accident, regardless of who is at fault.

Comprehensive Coverage

Comprehensive coverage is also optional coverage that pays for damages to your vehicle that are not caused by an accident. This includes theft, vandalism, and damage from natural disasters.

How Much Auto Insurance Do You Need in Minnesota?

As we mentioned earlier, Minnesota requires drivers to have liability and personal injury protection coverage. The minimum requirements for liability coverage in Minnesota are:

Type of Coverage	Minimum Coverage Required
Bodily Injury Liability (BIL)	$30,000 per person / $60,000 per accident
Property Damage Liability (PDL)	$10,000 per accident
Personal Injury Protection (PIP)	$20,000 per person / $40,000 per accident

However, the minimum requirements may not be enough to cover all of the expenses related to an accident. If you cause an accident that results in damages or injuries that exceed your coverage limits, you may be personally responsible for the remaining expenses. To avoid this, it is recommended that you consider purchasing higher coverage limits or additional coverage options, such as UM/UIM, collision or comprehensive coverage.

How to Choose the Right Auto Insurance Provider

Choosing the right auto insurance provider is an essential part of getting the coverage you need. Here are a few things to consider when selecting an insurance provider:

Reputation and Financial Strength

It is important to choose an insurance provider with a good reputation and solid financial strength. You can research insurance providers online to see reviews and ratings from other customers. Additionally, you can check their financial strength rating with independent rating agencies such as A.M. Best, Moody’s, and Standard & Poor’s.

Coverage Options and Discounts

When shopping for auto insurance, make sure you compare coverage options and discounts from several insurance providers. Some providers may offer discounts for things like safe driving, multiple vehicles, and bundling with other types of insurance (like home or renters insurance).

Customer Service

You want an insurance provider that is easy to work with and provides excellent customer service. Look for providers that offer 24/7 customer service and have a helpful and knowledgeable staff.

FAQs

What happens if I don’t have auto insurance in Minnesota?

Driving without auto insurance in Minnesota is illegal and can result in fines, license suspension, and even jail time. Additionally, if you are in an accident and do not have insurance, you may be personally responsible for paying for damages and injuries.

What factors affect my auto insurance premiums?

Several factors can impact how much you pay for auto insurance in Minnesota, including your driving record, the type of car you drive, your age, and where you live. Additionally, your coverage limits and deductibles can also impact your premiums.

Can I switch auto insurance providers?

Yes, you can switch auto insurance providers in Minnesota at any time. However, it is essential to make sure you have coverage in place before canceling your current policy. Additionally, some providers may charge a fee for canceling your policy before the renewal date.

How can I lower my auto insurance premiums?

There are several ways to lower your auto insurance premiums in Minnesota, including:

• Maintaining a clean driving record
• Choosing a higher deductible
• Bundling your auto insurance with other types of insurance
• Driving a car with safety features
• Asking about available discounts

Conclusion

Auto insurance is an important part of owning and driving a vehicle in Minnesota. By understanding the different types of coverage available and how to choose the right insurance provider, you can ensure that you have the coverage you need at a price you can afford. Remember that the minimum coverage required by law may not be sufficient to cover all of your expenses in an accident, so it is important to consider higher coverage limits or additional coverage options to protect yourself and your assets.