Like most states, Minnesota auto insurance laws require drivers to meet minimum coverage requirements before you hit the road. Thankfully, the Minnesota car insurance requirements are relatively simple, and a legitimate car insurance company will not sell you a policy that fails to comply with state regulations. Understanding state laws may help you choose your coverage types and limits to build a policy that works for your car and your budget.

Car insurance laws in Minnesota

Although Minnesota car insurance laws are easy to understand, 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 requirements in Minnesota

Minnesota insurance laws state 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:

Drivers who purchase minimum coverage car insurance in Minnesota pay the lowest car insurance rates, on average. 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 $60,000 in medical bills, you would have to pay the $10,000 not covered by their PIP and your bodily injury liability. See our example in the next section to learn more about how PIP works in a no-fault state.

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. If you’d like to have financial protection for your vehicle, you will need to add comprehensive and collision, also known as full coverage.

Is Minnesota a no-fault state?

Yes, Minnesota is a no-fault state. No-fault states typically mandate that you carry personal injury protection (PIP), which covers you for medical payments and lost wages caused by a car accident, no matter who is at fault. Each no-fault state sets its PIP coverage limit; in Minnesota, the limit is $40,000. That $40,000 minimum limit will cover up to $20,000 in medical expenses and $20,000 for non-medical expenses (such as lost wages).

Suppose you are in an accident in Minnesota and are deemed not at fault. You sustained $35,000 in injuries, so your PIP is triggered and pays out the maximum of $20,000. After your PIP pays out, you still have $15,000 worth of unpaid medical bills. In that case, the at-fault driver’s bodily injury coverage will pay to take care of the rest.

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.

Maintaining continuous coverage is vital to avoid costly fines and penalties from the state and protect yourself financially from the unexpected. Fortunately, there are many coverage packages you can choose from, and shopping for the cheapest car insurance in Minnesota can help you work this necessary expense into your budget.

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 $274 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 $214 per year, according to the Triple-I.
  • 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 up to certain limits if your vehicle needs to get repaired following a covered claim. Some insurance companies automatically include this coverage in full coverage policies.
  • Gap coverage: Gap coverage will pay off your loan balance if your vehicle is totaled in a covered loss or is stolen. Gap is usually optional, and you may be able to get it through your insurance company or your dealership.

Some of the best car insurance companies may offer additional coverages to those that are listed. When looking for a new policy, you may find it helpful to ask the agent for an overview of their optional coverages, as these can vary from provider to provider.

Frequently asked questions

    • Car insurance companies use many different rating factors to calculate premiums, including details about your driving history, your age, your vehicle make and model, and your location. Additionally, each company has its own proprietary algorithm to weigh these factors. As such, the best car insurance company in Minnesota will be different for every driver. However, Geico, State Farm and Auto-Owners may offer some of the best car insurance in Minnesota, according to Bankrate’s research. If you are shopping for new car insurance, you may want to start with these companies.
    • The average annual cost of car insurance in Minnesota is $1,982 for a full coverage policy and $637 for minimum coverage. For comparison, the average annual cost for a full coverage policy in the U.S. is $2,542 and $740 for the minimum. This data shows that Minnesota drivers pay average car insurance rates slightly below the national average.
    • Drivers in Minnesota can save money on car insurance by taking advantage of discounts such as enrolling in autopay or by going extended periods without an accident or claim. Minnesota allows insurance companies to take into account your credit score when determining your premium, so having a good credit score may also help to lower your car insurance cost. You can also shop around to compare prices among multiple carriers to find the most affordable rates for you.
    • The cheapest car insurance in Minnesota for one driver may not be for another. Auto insurance rates are highly personalized based on factors like driving record, age, gender, ZIP code, vehicle type and more. When looking for the cheapest car insurance for you, experts recommend shopping around and comparing quotes from several providers.