Minnesota Auto Insurance Laws, Minimums, Requirements
What mandatory auto insurance laws exist in the state of Minnesota?
- In the state of Minnesota all drivers must carry basic liability insurance coverage with uninsured/underinsured motorist (UM/UIM) bodily injury limits. This means that all Minnesota drivers must carry Personal Injury Protection (PIP), Liability, and UM/UIM. Please read the next section for a breakdown of the minimum coverage amounts.
- When registering your vehicle in the state of Minnesota, you must provide proof of insurance. The state requires the name of your insurance company and the policy number as proof.
- Minnesota drivers must carry proof of insurance in their vehicles at all times. Proper forms of proof of insurance include an insurance identification card, a written statement from the auto insurance company, or the current insurance policy.
What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):
If you buy automobile insurance in the state of Minnesota, your policy must include minimum coverages of:
Personal Injury Protection (PIP)
$40,000 per person per accident
($20,000 for hospital/medical expenses and
$20,000 for non-medical expenses such as lost
wages, replacement services, etc.)
Liability
$30,000 for injuries to one person
$60,000 for injuries to two or more people
$10,000 for physical damage to the other driver’s
vehicle or for damage to property
Uninsured
$25,000 for injuries to one person
$50,000 for injuries to two or more people
Underinsured
$25,000 for injuries to one person
$50,000 for injuries to two or more people
What are the Rental Car Insurance Requirements?
Minnesota law requires every automobile insurance policy to provide a minimum of $35,000 in coverage, without a deductible, for damage to, and loss of use of, a rental car (including pickup trucks and vans under 26,000 pounds). This is included under the property damage liability portion of the policy. Under Minnesota state law, when a driver rents a vehicle, a separate notice must be attached to the rental contract that informs the driver of this coverage. The notice must also state: “purchase of any collision damage waiver or similar insurance affected in this rental contract is not necessary if your policy was issued in Minnesota.” The same law requires that no collision damage waiver or other insurance affecting the rented vehicle can be sold unless the person renting the vehicle acknowledges in writing that the consumer protection notice has been read and understood.
What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?
Uninsured/Underinsured Motorist Coverage is mandatory in the state of Minnesota in the following minimum amounts of coverage:
Uninsured
$25,000 for injuries to one person
$50,000 for injuries to two or more people
Underinsured
$25,000 for injuries to one person
$50,000 for injuries to two or more people
What are the rules pertaining to the exclusion from coverage of a driver living in household?
In the state of Minnesota, you must list all household members on your insurance policy if they will be driving your vehicle. If you fail to identify a member of the household who would be insured under the policy, the insurance company can cancel or reduce coverage at any time.
What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?
If you fail to maintain continuous coverage on a vehicle throughout the period of operation, you have a lapse in coverage. This means that when your insurance lapses, you are driving without insurance. Minnesota’s No Fault laws make it illegal for Minnesota motorists to drive without insurance or permit others to drive their vehicle without insurance. The penalty for driving without insurance in the state of Minnesota include loss of driving privileges, fines, and even imprisonment. Minnesota drivers must carry proof of insurance in their vehicles at all times. Proper forms of proof of insurance include an insurance identification card, a written statement from the auto insurance company, or the current insurance policy.
What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?
In the state of Minnesota, auto insurance companies may consider Personal Credit History when determining rates and offers for products. While auto insurance companies may consider credit rating, they also use many other factors to determine rates such as added coverage, age, gender, type of vehicle, mileage, driving record, and where you live.
Is the state a No Fault or Tort state? What does either mean to the policy owner?
Minnesota follows a No Fault system. This means that if you are involved in an accident, it doesn’t matter who is at fault. Your insurance covers you, and the other party’s insurance covers them. Minnesota’s No Fault laws make it illegal for Minnesota motorists to drive without insurance or permit others to drive their vehicle without insurance. The penalty for driving without insurance in the state of Minnesota include loss of driving privileges, fines, and even imprisonment.
What is the average auto insurance premium in this state? As of what year?
As of 2006, Minnesota resident’s average insurance premium was approximately $753, the 25th most expensive in the nation. This was down 4.9% from the previous year. The national average was $817.
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