Minnesota Car Insurance: Guidelines for Residents

With car insurance requirements varying widely from state to state it can be very difficult for each states’ residents to know exactly what car insurance policy they should purchase. Prior to making this decision all consumers should take the time to educate themselves on the specifics of their state. Minnesota drivers are some of the most well insured in the country.

To begin, Minnesota is a no-fault state. This means that in the event of an accident all drivers involved will have their expenses met by their own insurance company, regardless of which driver was specifically responsible for causing the accident. As a result of this policy all MN drivers are required to carry PIP, or Personal Injury Protection, insurance. Those individuals who are covered by a comprehensive health insurance policy may elect to purchase only the minimum level of PIP; however, this should be considered thoroughly, as PIP provides benefits not only relating to healthcare expenses but with the recompense of lost wages and, if necessary, funeral expenses. PIP may also be extending to the other occupants of the vehicle.

Since there are exceptions to the no fault policy it is also required that all drivers carry a liability policy no less than the minimum level of coverage, which for Minnesota is thirty thousand dollars for medical expenses incurred by a single driver, sixty thousand dollars for the combined medical expenses of all of the vehicle’s occupants and ten thousand dollars for repairs to any property damaged by the accident, including but not limited to those needed by the victim’s vehicle.

Also required is uninsured motorist insurance. As foolish as it may seem not all states in the US require that their residents purchase a liability policy. As a result there are vehicles all over the country driving around with no insurance, leaving them personally responsible for the wreckage left behind should they be responsible for an accident. Uninsured motorist insurance will assist in the expenses resulting from these accidents, as well as those inflicted upon the insured should they be the victim of a hit and run.

Not required but strongly recommended is comprehensive and collision coverage. With collision insurance the driver responsible for the accident may find themselves solely responsible for payment on the repairs to their vehicle. Collision will pay for the cost of repairs up to its designated Blue Book value, and in the event that the cost of repairs exceeds this amount the vehicle will be considered totaled and the owner reimbursed the cash value of the car. Collision insurance may be required for all those vehicles currently under lien.

More information on insurance regulations for MN can be obtained through the Minnesota Department of Commerce by visiting their website.