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Minnesota car insurance laws

Long road in Minnesota countryside.
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In 2019, there were 80,636 car accidents in Minnesota, which resulted in 27,260 injuries and 364 fatalities. Although the rate of fatal crashes in Minnesota is declining, drunk driving, distracted driving and speed-related accidents continue to cause problems on Minnesota roads.

Drivers in Minnesota are required to carry car insurance, which protects them legally and financially from common liabilities. Every driver in Minnesota should understand the car insurance laws in the state to ensure they have enough coverage.

Car insurance laws in Minnesota

Minnesota car insurance laws are easy to understand, but there are several laws that differ from other states. Current Minnesota drivers and individuals who are planning to move to Minnesota should review the laws to make sure they meet the state requirements:

  • Car insurance is legally required: Every driver in Minnesota must carry a minimum amount of car insurance. Any car that is registered in the state must be covered, regardless of how often the vehicle is driven.
  • Drivers must carry no-fault insurance: Minnesota is a no-fault state, which means drivers are required to carry no-fault insurance, in addition to basic liability insurance.
  • Drivers must carry proof of insurance: Drivers in Minnesota are legally required to carry proof of insurance at all times. Physical and electronic proof of insurance documents are acceptable. Drivers must provide proper documentation when requested by law enforcement.
  • Your policy can be canceled for non-payment or fraud: Drivers who fail to pay their monthly insurance premium, or fail to disclose certain information to their insurance company, can have their policy canceled at any time.

Liability insurance in Minnesota

Minnesota insurance law states that all drivers must carry liability insurance. Uninsured/underinsured motorist liability coverage is also legally required in Minnesota. The Minnesota minimum car insurance requirements are 30/60/10, which includes:

  • $30,000 in bodily injury liability coverage per person
  • $60,000 in bodily injury liability coverage per accident
  • $25,000 in uninsured/underinsured bodily injury liability coverage per person
  • $50,000 in uninsured/underinsured bodily injury liability coverage per accident
  • $10,000 in property damage liability coverage per accident

Drivers who purchase minimum coverage car insurance in Minnesota pay the lowest car insurance rate. However, opting for liability-only coverage is not recommended. Car accidents can be costly, and there is no guarantee that Minnesota’s minimum coverage requirements will cover the full cost of an at-fault crash.

For example, if you cause an accident and the other driver’s vehicle sustains $20,000 worth of damage, you would be responsible for paying the remaining $10,000 out-of-pocket. If the driver was injured and sustained $50,000 in medical bills, you would have to pay the other $20,000.

Minnesota drivers who are considering minimum coverage insurance should also know that liability-only coverage does not include any protection for their vehicle. If you got into an accident and your car needed repairs, you would be responsible for covering the full cost.

Is Minnesota a no fault state?

Yes, Minnesota is a no-fault state. In no-fault states, a driver’s insurance company pays for their medical bills and lost wages after an accident, regardless of which driver caused the crash. In a fault state, the at-fault driver’s insurance company is responsible for compensating the other driver for their losses.

Because Minnesota is a no-fault state, drivers are required to carry a minimum of $40,000 in Personal Injury Protection (PIP). Minnesota no-fault insurance will cover up to $20,000 in medical expenses and up to $20,000 in non-medical expenses, like lost wages. Drivers have the option to raise their PIP coverage limits for more protection.

Penalties for driving without insurance in Minnesota

Driving without insurance in Minnesota is a misdemeanor. After a first offense, the driver’s license will be suspended and the driver will be required to pay a $200 fine. If the driver cannot afford to pay the $200 fine, the court may allow the driver to complete community service instead.

In Minnesota, drivers who get their license suspended are required to purchase SR-22 insurance in order to reinstate their license. Drivers who have their license suspended but do not own their own vehicle can either purchase a non-owners insurance policy or get added to another driver’s existing insurance policy.

Additional auto insurance coverage options in Minnesota

Most drivers in Minnesota purchase coverage beyond the Minnesota auto insurance requirements. Here are some additional policies that are available in Minnesota:

  • Collision insurance: Collision insurance pays for your vehicle’s repairs after an accident. The average cost of collision insurance in Minnesota is around $257 per year.
  • Comprehensive insurance: Comprehensive insurance pays for your vehicle’s repairs related to non-accident claims, like falling objects or theft. The average cost of comprehensive insurance in Minnesota is approximately $197 per year.
  • Roadside assistance: With roadside assistance coverage, drivers can get access to towing services, battery replacement, fuel delivery, extrication, lockout services and tire replacement.
  • Rental car reimbursement: Rental car reimbursement pays for a rental car if your vehicle needs to get repaired following a covered claim. Some insurance companies automatically include this coverage in full coverage policies.

Frequently asked questions

What is the best car insurance company in Minnesota?

The best car insurance company in Minnesota is different for every driver. It depends on what type of coverage you need, how much coverage you need and what your budget is. Some of the highest-rated car insurance providers in Minnesota are Country Financial, Geico, State Farm and Westfield Insurance.

How much does car insurance cost in Minnesota?

In Minnesota, the average full coverage car insurance policy costs $1,582 per year and the average minimum coverage insurance policy costs $522 per year. Car insurance rates in Minnesota are slightly cheaper than the national average. In the United States, the average driver pays $1,738 for full coverage insurance.

How can I save money on car insurance?

Drivers in Minnesota can save money on their car insurance policy by taking advantage of discounts, improving their credit score and increasing their deductible. Shopping around and comparing multiple insurance quotes can ensure you are getting the lowest price possible.

Written by
Elizabeth Rivelli
Insurance Contributor
Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, and NextAdvisor, among others