Minnesota Auto Insurance Coverage & Costs

In the Land of 10,000 Lakes, vehicle insurance rates are cheaper than the US average for both state required minimum and full coverage policies. Minnesota car insurance requirements are different from most other states. Drivers are required No-Fault coverage, which refers to Personal Injury Protection (PIP) you would see in other states but it is much higher than most at $40,000. It also has the minimum liability requirements as usual.

Another interesting point to know about requirements in the North Star State is that you automatically get up to $35,000 coverage for damages to rental cars, under the property damage liability portion, without a deductible. This is part of a basic policy. State requires rental firms to point this out to you so that you don’t buy any more coverage if you don’t need it.

Minnesota Auto Insurance Requirements

The state required minimum liability coverage must have at least the following limits;

Minnesota in Pictures

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

Minnesota also requires Personal Injury Protection (PIP) and Uninsured/Underinsured Motorists Bodily Injury coverage (U/UIM BI) with the following minimum limits:

  • PIP: $40,000 ($20,000 for medical expenses, $20,000 for monetary losses like wages)
  • U/UIM BI: $25,000 per person, $50,000 per accident

PIP covers your medical costs, as well as lost wages and death benefits, even if you’re at fault. U/UIM BI pays for medical expenses for you and your passengers if the accident is caused by a driver with no or insufficient insurance.

It is probably best to read the full explanation on the brochure on the official website.

Drivers are advised to take their net worth into account and choose higher liability limits than what is mandated in MN for added protection.

Motorists shouldn’t hesitate to look for a decent level of protection just because they are worried about costs. In any case, you should at least get a few quotes to see. Even though the minimum requirements are pretty bulked up you can still get cheap car insurance in Minnesota. Also, uninsured drivers figures at 9.9% are lower than the country average.

Here are some of the other interesting Minnesota car insurance and driving Facts:

Minnesotan drivers travel 17,909 miles a year, which is considerably higher than the US average and this statistic may affect your car insurance premiums depending on the company.

Snow, blizzards, ice and tornados are some of the prominent driving hazards in Minnesota and Comprehensive coverage vehicle insurance includes damages to your automobile from these acts of nature.

Ford F-150 is one of the most popular vehicles in Minnesota.

Having a DUI on your driving record in Minnesota has the potential to cause your car insurance rates to double. Similarly, receiving a speeding ticket could result in a cost increase of up to 29%, and the same holds true for being at-fault in an accident.

Minnesota Auto Insurance Costs

The Land of 10,000 Lakes’ most notable feature appears to be the number of lakes. MN is a large Midwestern State but it is not densely populated. Its residents appear to be doing well financially in comparison to the rest of the nation. These factors, along with regulations, affect prices.

The average premium for state required minimum coverage in MN is $585 and it is $37 cheaper than the US average. You can also get affordable full coverage vehicle insurance as the average is $1,760 and it is $254 below the US average. These figures are based on a good driver with no ticket or claim.

If you are paying a lot more than the above averages for automobile insurance due to a recent accident or traffic ticket, you should know that more than half of the discounts offered are for things like home ownership, good credit score, quick payment, living in a nice zip code and having a safe car. Instead of being disappointed, you should try your best to reduce your premium by shopping around.

The Lowest Priced Car Insurers in Minnesota

One thing policyholders need to remember is that Carriers change their rates pretty fast. For example, Travelers was the cheapest last year but it isn’t even in the top 20 this year. These are the most competitive companies in MN for now but you should always get a few more quotes from different carriers and compare them. This is the only way of making sure that premiums remain constantly competitive.

  1. Farm Bureau Mutual
  2. State Farm
  3. West Bend Mutual

These companies are consistently providing low prices in most cities. Auto insurance rates are slightly more expensive in large cities like Saint Paul and Minneapolis but it isn’t large enough to raise concern. Actually, city premiums are low in comparison considering nearly 60% of the state population lives in the Minneapolis–Saint Paul metropolitan area (known as the “Twin Cities”). Usually, rates are much higher in metro areas across the country for obvious reasons like congested traffic, higher accidents and vehicular crimes.