Auto Insurance In Mn: Understanding The Minimum Coverage Requirements

Minnesota requires drivers to have auto insurance, and there are minimum coverage requirements that drivers must meet. These include liability coverage, personal injury protection (PIP), and uninsured and underinsured motorist coverage. Liability insurance covers the other driver and their passengers when you are at fault for an accident, with minimums of $30,000 bodily injury liability per person and $60,000 per accident, as well as $10,000 property damage liability per accident. PIP provides basic economic benefits, with a minimum of $40,000 per person per accident, including $20,000 for medical expenses and $20,000 for non-medical expenses. Uninsured and underinsured motorist coverage pays for medical expenses when the other driver is at fault but doesn't have enough insurance, with minimums of $25,000 per person and $50,000 per accident for both.

Bodily injury liability: $30,000 per person, $60,000 per accident

In Minnesota, drivers are legally required to have a minimum of $30,000 in bodily injury liability coverage per person and $60,000 per accident. This type of insurance covers the expenses of those who are injured or killed in a car accident where the policyholder is at fault.

Bodily injury liability insurance can pay for:

• Medical expenses, such as emergency care, hospital fees, follow-up visits, and medical equipment.
• Lost income if the injured person is unable to work as a result of the accident.
• Funeral costs if the injuries from the accident are fatal.
• Pain and suffering if the injured person experiences long-lasting emotional trauma or pain.
• Legal fees if the injured person sues the policyholder.

It's important to note that bodily injury liability coverage does not pay for the medical costs of injuries the policyholder may sustain in the accident. It also does not cover repairs or property damage, whether to the policyholder's vehicle or the other driver's.

While Minnesota mandates a minimum amount of bodily injury liability coverage, drivers can choose to purchase additional coverage for added protection.

Property damage liability: $10,000

In the state of Minnesota, drivers are legally required to carry a minimum of $10,000 in property damage liability coverage per accident. This type of insurance will cover the costs of damage to another person's property if you are at fault in a car accident. It covers damage to other cars, buildings, and structures such as fences and telephone poles, but it does not cover damage to your own car. Property damage liability insurance also won't cover injuries caused in a crash; for that, you would need separate medical coverage.

Property damage liability insurance typically has a "per accident" limit and no deductible. This means that the coverage pays out after an accident for which you are at fault, but only up to the amount stated in your policy. If you cause another accident, the coverage will pay out again up to that policy limit.

For example, let's say you have a property damage liability limit of $10,000. If you cause $4,500 worth of damage to another driver's vehicle, your insurer would cover all the repair costs because the total is lower than your policy's limit. However, if you caused $10,500 worth of damage, your insurer would only pay up to your policy's limit, leaving you responsible for the remaining $500.

While the state minimum for property damage liability coverage in Minnesota is $10,000, buying more than the minimum requirement can offer more financial protection. The average cost of damage from a crash involving only property damage is $5,700 per vehicle, but damage can far exceed that amount in a major crash, especially if you collide with a newer, expensive vehicle.

Personal injury protection (PIP): $40,000

Personal injury protection (PIP) insurance is a requirement for all drivers in Minnesota, as the state follows a no-fault policy. This means that your own car insurance covers your medical expenses and other out-of-pocket losses after a car accident, regardless of who was at fault. The purpose of this no-fault system is to reduce the cost of car insurance by removing the need for lengthy and costly legal proceedings to determine fault.

The minimum PIP insurance requirement in Minnesota is $40,000 per person per accident, with $20,000 allocated for medical expenses and the remaining $20,000 for non-medical expenses. PIP insurance covers a wide range of costs related to injuries sustained in an auto accident, including medical expenses, non-medical economic losses, and losses related to the death of someone covered by the policy.

Medical expenses covered by PIP include all reasonable costs for necessary medical care resulting from injuries sustained in a car accident, such as broken bones, whiplash, or head trauma. Under Minnesota law, reasonable care can include chiropractic services and transportation to medical care.

In addition to medical costs, PIP coverage provides reimbursement for lost wages and the cost of household services that the injured person would typically perform. For lost income, PIP pays a maximum of 85% of gross pay, up to $500 per week. For household services like groceries, housekeeping, and property maintenance, PIP provides up to $200 per week.

If a person covered by the policy dies in an accident, PIP insurance covers funeral and burial costs of up to $5,000. Surviving dependents, such as a spouse or children, can receive economic loss benefits of up to $500 per week and replacement services benefits of up to $200 per week until the limit is reached or the dependent is no longer considered a dependent.

It is important to note that PIP coverage does not include compensation for pain and suffering, nor does it cover property damage, such as vehicle repairs, which would be covered by the other driver's liability insurance or your own collision or comprehensive coverage.

Uninsured motorist coverage: $25,000 per person, $50,000 per accident

In Minnesota, drivers are required to carry uninsured motorist coverage of $25,000 per person and $50,000 per accident. This type of insurance is essential, especially in the event of an accident with an uninsured or underinsured driver. It provides protection for you, your family, and your passengers, covering any injuries sustained and, depending on your state, may also cover vehicle damage.

Uninsured motorist coverage is designed to fill the gap when the at-fault driver in an accident does not have insurance or has insufficient coverage. This scenario could leave you facing high medical and repair bills if you don't have the right insurance in place. With this coverage, you can make a claim with your insurance company for any injuries or damages sustained.

In Minnesota, the minimum coverage for uninsured motorist bodily injury is $25,000 per person and $50,000 per accident. This means that if you are in an accident with an uninsured or underinsured driver, your insurance company will cover up to $25,000 of bodily injury-related expenses per person, with a maximum of $50,000 total per accident. This coverage is separate from your liability coverage and helps ensure that you are protected financially in the event of an accident with an uninsured driver.

While the minimum coverage in Minnesota is $25,000 per person and $50,000 per accident, you may want to consider purchasing higher coverage limits. Higher limits can provide additional financial protection in the event of a serious accident with multiple injuries. It's important to assess your financial situation and choose coverage limits that give you peace of mind and adequate protection.

Underinsured motorist coverage: $25,000 per person, $50,000 per accident

In Minnesota, motorists are required to have a minimum of $25,000 per person and $50,000 per accident in uninsured/underinsured motorist coverage. This type of insurance is essential as it protects you financially in the event of an accident where the other driver is at fault and doesn't have enough insurance to cover the damages.

Uninsured motorist coverage, which is often offered alongside underinsured motorist coverage, will cover your injuries and your passengers' injuries, as well as damage to your vehicle if the other driver has no insurance. Underinsured motorist coverage will cover the same if the other driver doesn't have enough insurance.

In Minnesota, if you are in an accident and the other driver is at fault, their insurance will pay out first. If their insurance does not cover all your expenses, your underinsured motorist coverage will cover the rest, up to your policy limits. This coverage is designed to help you recover financially from an accident by covering expenses such as medical bills, lost wages, and damage to your vehicle.

It's important to note that underinsured motorist coverage only covers damages up to the policy limits. If your expenses exceed these limits, you may need to explore other options to recover your costs, such as filing a personal claim against the at-fault driver.

While Minnesota requires a minimum of $25,000 per person and $50,000 per accident for underinsured motorist coverage, you may want to consider higher coverage limits to ensure you have sufficient protection in the event of a serious accident.

Frequently asked questions