The state of Minnesota requires that all drivers have car insurance of some kind, from the most basic to comprehensive coverage, for their vehicles. Minnesota is a no-fault car insurance state, which means that all drivers are required to have at least the personal injury protection coverage for their vehicles. Below are some important facts about Minnesota car insurance.
Car Insurance Basics In Minnesota
In most cases, licensed vehicles in Minnesota must have personal injury protection, liability coverage, uninsured and underinsured motorist coverage. A combination of these is quite adequate, as it would offer coverage for most traffic accident scenarios.
Minnesota auto insurance coverage not only the owner of the vehicle, but also any relative who does not have their own policy but lives in the same household as the owner. This is in addition to the spouse and children. It also offers coverage to any other person who uses your vehicle, with your permission, and does not have his or her own auto insurance coverage.
Types Of Minnesota Car Insurance Explained
Personal injury protection cover, or PIP, would provide basic coverage should you sustain injuries from an accident. PIP covers medical expenses, lost wages and replacement services, for example, housekeeping. In the event of death, this type of insurance would meet the funeral expenses to a tune of $2,000. It is known as no-fault insurance coverage because the benefits are paid out regardless of who was at fault for the accident.
The minimum coverage for no-fault insurance in Minnesota is $40,000 per person per accident, where one half is for medical expenses and the other half for non-medical expenses. Claims made for no-fault incidents are made first to your own policy coverage, then to the other driver’s liability coverage if the expenses are greater than your own PIP limits. However, it must be proved that the other driver was liable in order to make any claims against them.
Liability insurance in Minnesota pays for any damages to the other person’s vehicle if you are found to be at fault. This type of coverage is also required by law and it can protect you from great losses should the other driver opt to make claims to cover their own PIP insurance. The minimum liability coverage for Minnesota is $30,000 for injuries to one person; twice that figure for two or more people, and $10,000 to provide coverage for physical damages to property, including the other driver’s vehicle.
Another required Minnesota car insurance policy is underinsured coverage. This is mainly caters for medical claims after the accident occurs. It is crucial to have underinsured coverage because it would guarantee you compensation if the other driver is proved liable, but does not have enough liability coverage to meet your medical claims. The minimum for underinsured cover is $25,000 for injuries to one person, and double that for 2 or more people involved in the accident.
Uninsured coverage is another auto insurance product in Minnesota. It is also ideal for medical expenses incurred due to an auto accident in case the PIP benefits are already exhausted, the other driver is found liable for the accident, and is not covered by insurance at all. The minimum underinsured cover in Minnesota is the same for uninsured cover, which is $25,000 and $50,000 for injuries to one person and 2 or more people, respectively.
Factors affecting Insurance Premium Costs in Minnesota
With the above four kinds of car insurance being mandatory in the state of Minnesota, it may seem expensive or unmanageable to meet regular monthly insurance payments. However, several factors affect how much premiums you will pay for your Minnesota car insurance.
You may opt to go above the required insurance coverage and include, for example, collision coverage, comprehensive coverage that includes losses such as theft, fire or falling objects, full glass replacement cover or provisions for rental car usage. All these come at different rates and can cumulatively increase your monthly premiums.
Another factor is age and gender, both of which go hand in hand when determining accident rates among different groups of people. The insurance industry generally considers teenagers and seniors at more risk of causing or being involved in car accidents, so they in turn pay more premiums. Along with this is the driving record for the individual driver, whereby the more tickets or accidents you have had over a given period of time, the higher the premiums.
The type of vehicle, mileage and location also determine the price of Minnesota car insurance premiums. If you drive a vehicle that costs more to repair or replace, drive more for example due to commuting to work, or live in a city or high traffic region, you will pay more for your auto insurance. These factors are also quite uniform across the US in terms of car insurance providers.
How To Reduce Your Car Insurance Costs
If you are considering purchasing a car for yourself or your teenage child, you would have the best chance of reducing insurance costs by choosing a relatively low or easy maintenance vehicle and starting with a clean driving record. On the other hand, if you are relocating to Minnesota and searching for affordable auto insurance, keep the following tips in mind:
- Search online for car insurance quotes. With a reliable online insurance comparison site, you can get a good idea of how much insurance you will need according to the various car insurance providers in Minnesota.
- Find out about any available insurance discounts from Minnesota auto insurers. Some examples of car insurance discounts include if you insure your home with the same company, non-smoker discounts, over 55-year-old drivers with defensive driving training, or vehicles with anti-theft units.
- Learn about surcharges and deductibles for auto insurance, which will ultimately reduce premiums. In some cases, insurers “forgive” first accidents or tickets, while others vary their surcharges depending on the situation. In terms of deductibles, the basic principle is the higher the deductibles, the lower the premium. Make sure that you can afford the deductible, as it is the amount you will have to pay first before the insurance company pays for the rest of the benefits.
Finally, Minnesota car insurance laws require that all auto insurance claims be filed within 6 months of the accident, along with all medical or non-medical bills as they arise. Choose the best auto insurance cover in Minnesota and enjoy full benefits at affordable rates.