Minnesota Car Insurance Requirements

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Car insurance requirements in Minnesota

Minnesota requires car owners to have three types of auto insurance: Liability, uninsured/underinsured motorist coverage and personal injury protection (PIP). The state also has higher requirements for liability coverage levels compared to many other states. Still, the state minimums may not be enough if you're in an accident. Let's look at what's available so you can make the right auto insurance picks.

Minimum liability insurance in Minnesota:

Liability car insurance is for damage you do to others, such as car dents and injuries. It won't cover your own car or your medical bills from a car accident. In Minnesota you must have liability coverage limits of at least:

$30,000 bodily injury per person
$60,000 bodily injury per accident
$10,000 property damage per accident

This is often written as 30/60/10.

Minimum uninsured (UM) and underinsured motorist (UIM) coverage:

Minnesota requires both UM and UIM. These coverage types pay medical bills if you or your passengers are injured by a driver with no car insurance, or not enough. Drivers must have UM and UIM with limits of $25,000 per person/$50,000 per accident (known as 25/50).

Minimum personal injury protection (PIP):

Minnesota has a no-fault insurance system. That means you make small injury claims on your own policy, no matter who was at fault. Personal injury protection (PIP) pays these claims.

Minnesota drivers must buy $40,000 in PIP insurance. This includes $20,000 for medical costs and $20,000 for non-medical costs, such as lost wages if you can't work due to an accident. In Minnesota, PIP also pays up to $2,000 for funeral expenses.

Optional car insurance in Minnesota

Comprehensive coverage: Covers theft of your vehicle or damage from hitting an animal, hail, flood, fire, vandalism, falling objects and explosions.

Collision coverage: Covers damage to your vehicle from hitting another car or an object, like a tree or post.

If you have a car loan or lease you're likely already required to have both comprehensive and collision insurance.

Rental reimbursement: Covers a rental car if your vehicle is being repaired after a car accident. It is not the same as "rental car coverage," which you'd buy to rent a car on vacation, for example.

You must show an insurance ID card (or other proof of financial responsibility) in Minnesota when:

Law enforcement requests it
You renew vehicle registration

Penalties for not having auto insurance in Minnesota

Misdemeanor: not more than 90 days in jail and/or fine of $200 to $1,000.
If convicted of violation within 10 years of first of two prior convictions, guilty of a gross misdemeanor: not more than one year in jail and/or fine of $200 to $3,000.
Civil penalties include suspension to license and registration for up to one year.

Source: Property Casualty Insurers Association of America

Auto insurance complaints

Each state's department of insurance handles complaints against insurance companies from state residents. Below are national complaint ratios for the largest auto insurance companies in Minnesota. The ratio shows the level of complaints in comparison to the insurer's size.