Minnesota Auto Insurance

Minnesota operates as a no fault state and has many requirements for car insurance coverage. Minnesota drivers must have personal injury protection coverage (PIP), uninsured motorist bodily injury coverage, as well as standard liability coverage. In Minnesota, auto insurance is mandatory by law and driving without proper proof of insurance could result in a fine.

Coverage Requirements in Minnesota

The Minnesota standard liability limits are 30/60/10, meaning drivers must carry $30,000 per person injured, $60,000 for all injured, and $10,000 for any property damage caused by an accident.

For personal injury protection, Minnesota has a mandatory minimum of $20,000 for any injuries caused by an accident and $20,000 for income loss, funeral, or related expenses. Having PIP protection limits the ability of one driver to sue another. The only cases where it would be acceptable would be when the amount of medical expenses exceeded the coverage carried by the at-fault driver. However, drivers cannot sue for excessive property damage expenses.

Minnesota also demands that drivers carry uninsured motorist bodily injury protection. The minimum coverage for this is 25/50. In the case of an accident with someone who wasn’t covered by insurance, the uninsured coverage would protect up to $25,000 per person involved and $50,000 for all individuals. This protection would only be used after PIP had exceeded its levels.

Minnesota Auto Insurance Rates

For 2003, Minnesota ranked 18th out of the 50 states in the amount of money spent on car insurance. Minnesota expenses during 2003 averaged $836.12, with drivers paying on $476.37 on liability coverage, $250.07 on collision coverage, and $202.90 on comprehensive coverage. From 1999 to 2003, average expense for Minnesota auto insurance rose 21.5%.

So how do the insurance companies figure out these rates? It’s not a simple task. They begin by calculating the cost to provide coverage to all drivers in the state. Then they build categories, which relate to risks, place values on those categories, and set standards for belonging to one category or another.

The insurance company then figures which category to place individual drivers by evaluating age, car type, location, marital status and driving record, among other factors.

Minnesota Auto Insurance Carriers

Insurance companies do not all figure premiums the same way and rates can vary widely, so it may suit you well to shop around for the best deal.

Additional Minnesota Auto Insurance Resources

For more information on Minnesota auto insurance, contact the Minnesota Department of Commerce.

Minnesota Department of Commerce
85 7th Place East, Suite 500
St. Paul, MN 55101
Phone: (651) 296-4026

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For other Minnesota Insurance Resources, See:

• Minnesota Health Insurance
• Minnesota Home Insurance

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