Automobile

Minnesota Car Insurance Laws: Everything You Need to Know

Table of Contents

  • Minnesota Auto Insurance Costs by Insurer
  • Minnesota Auto Insurance Premiums by Driver Age
  • Minnesota Car Insurance Premiums by Gender and Marital Status
  • Average Minnesota Insurance Rates After a Violation or Accident
  • Minnesota Auto Insurance Premiums by Credit Tier
  • Expensive Minnesota Cities
  • Cheaper Minnesota Cities
  • List of Insurance Companies in Minnesota
  • No-Fault Insurance in Minnesota Information

    When looking at Minnesota car insurance laws, you should know what type and how much coverage you need to carry to keep you and other drivers safe.

    Minnesota Auto Insurance Costs by Insurer

    Just like most states, Minnesota has laws requiring drivers to carry specific levels of auto insurance. If a Minnesota law officer asks to see proof of insurance, you are required to carry proof, which can include your insurance ID card or a copy of your policy’s declaration page.

    The insurance minimums are the lowest amount of coverage you can carry while still legally allowed to drive. The minimums also protect you and other drivers in case one of you gets into an accident.

    According to the Minnesota No-Fault Act, all drivers in the state must carry no-fault/personal injury protection (PIP), liability, and uninsured/underinsured coverage. The minimum coverage is as follows:

    No-Fault or Personal Injury Protection (PIP)

    • $40,000 per person for each accident
    • $20,000 for hospital and medical expenses
    • $20,000 for non-medical expenses

      Liability Coverage

      • $30,000 for bodily injury for each person
      • $60,000 for bodily injury for each accident
      • $10,000 for property damage for each accident

        Uninsured/Underinsured Motorist (UM/UIM) Coverage

        • $25,000 for injuries to one person
        • $50,000 for injuries to two or more people

          For PIP, the non-medical expenses or work-loss benefits can cover the following:

          • Disability and income loss benefit. If you become disabled or cannot work due to injuries you suffered from the accident, the state’s PIP gives you 85 percent for lost income, up to $500 per week until you reach the limit.
          • Replacement services benefit. This covers the cost of paying for housecleaning if you cannot perform them due to your injuries.
          • Funeral benefit. If someone on your policy dies due to injuries from the accident, your provider must pay up to $2000.
          • Survivor’s benefits. If a covered driver dies due to injuries from the accident and legal dependents rely on the income provided by the deceased, the dependents can make claims. They are entitled to a maximum of $500 per week.

            Minnesota requires a higher minimum level of insurance compared to many states. Although these minimums are the lowest you need, you can oftentimes increase the limits for a modest increase in your premiums.

            According to The Zebra, the average annual car insurance cost in the state is $1258, which is almost 12 percent less compared to the national average. The average annual full-coverage insurance costs in Minnesota, according to NerdWallet, is as follows:

            • Farm Bureau Financial Services: $865
            • State Farm: $1032
            • North Star: $1088
            • American Family: $1089
            • Auto-Owners: $1208

              Minnesota Auto Insurance Premiums by Driver Age

              One of the factors that insurance companies use to determine premium prices is your age. The Zebra states that you should expect to pay these annual average rates based on your age:

              • Teens: $4899
              • 20s: $1670
              • 30s: $1221
              • 40s: $1163
              • 50s: $1068
              • 60s: $1131
              • 70s: $1372

                Minnesota Car Insurance Premiums by Gender and Marital Status

                Gender and marital status also play a role in premium prices. According to The Zebra, you should expect to pay an annual average insurance price based on your gender:

                  In Minnesota, drivers who are married can save money on car insurance. On average, they save $92 annually, which is higher than the national average of $76.

                  • Single: $1242
                  • Married: $1150
                  • Divorced: $1242
                  • Widowed: $1242

                    Average Minnesota Insurance Rates After a Violation or Accident

                    If you’re involved in an accident or receive a violation, you can expect your car insurance rates in Minnesota to skyrocket. Even having one at-fault accident on your driving record can cause your rates to increase. According to ValuePenguin, these companies offer the best annual rates after an accident:

                    • State Farm: $1479
                    • Auto-Owners: $1922
                    • GEICO: $3205

                      ValuePenguin states that if you have a DUI/DWI on your record, your insurance rates are 78 percent more expensive compared to a policy without blemishes. The average annual costs if you have one of these on your record include the following:

                      • State Farm: $1371
                      • Auto-Owners: $2774
                      • American Family: $3220

                        Minnesota Auto Insurance Premiums by Credit Tier

                        Certain states allow insurers to consider your credit history when setting premiums. Minnesota is one such state. Insurers use data that suggests drivers with excellent credit are less likely to file claims, so they receive cheaper rates. The Zebra breaks down the average costs based on credit:

                        • Very Poor (300-579): $2534
                        • Fair (580-669): $2037
                        • Good (670-739): $1582
                        • Very Good (740-799): $1305
                        • Exceptional (800-850): $1068

                          Expensive Minnesota Cities

                          Where you live in Minnesota can play a role in your premium costs. If you live in an area with a high population density, expect to pay more for insurance. WalletHub reports the most expensive Minnesota cities include the following:

                          • Minneapolis
                          • St. Paul
                          • Burnsville
                          • Inner Grove Heights
                          • Anoka

                            Cheaper Minnesota Cities

                            According to NerdWallet, the following cities offer some of the cheapest annual car insurance prices:

                            • Moorhead
                            • Mankato
                            • Winona
                            • Duluth
                            • Austin

                              List of Insurance Companies in Minnesota

                              If you’re looking for insurance companies in Minnesota to compare costs, there are a variety available. Don’t forget to look at local companies as well as national insurers. A few of the companies that insure Minnesota drivers include American Family, State Farm, Auto-Owners, North Star, GEICO, Country Financial, and Farm Bureau Financial Services.

                              No-Fault Insurance in Minnesota Information

                              Just like about a dozen other states, Minnesota is a no-fault state. That means your PIP coverage pays for medical treatment and other damages after an accident up to your policy limits, no matter who was at fault.

                              If you get into an accident in Minnesota and want to sue the other driver, your rights are limited. However, certain situations allow you to sue:

                              • Sue for economic loss. If your medical bills aren’t fully covered by your PIP or health insurance, you can sue the at-fault driver for uncovered costs.
                              • Sue for non-economic loss. You can sue if your medical bills exceed $4000, even when it’s fully covered.

                                Minnesota car insurance laws are created to protect you and other drivers on the road in case one of you gets into an accident. Insurance companies consider many factors when setting premium costs, but you can always shop around to find the best prices for your needs and budget.

                                Sources:

                                https://www.thezebra.com/auto-insurance/minnesota-car-insurance/mn-average-cost-of-auto-insurance/

                                https://www.nerdwallet.com/blog/insurance/cheapest-car-insurance-in-minnesota-mn/

                                https://wallethub.com/cheap-car-insurance/minnesota

                                https://www.valuepenguin.com/best-cheap-car-insurance-minnesota

                                https://www.leg.mn.gov/docs/pre2003/other/860128.pdf

                                https://www.caranddriver.com/car-insurance/a35434289/geico-car-insurance/

                                https://www.caranddriver.com/car-insurance/a31268853/what-does-full-coverage-car-insurance-cover/

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