Guide to Auto Insurance in Minnesota

Like the majority of states, Minnesota requires drivers to purchase auto insurance. On average, Minnesotans spend $881 each year on auto insurance. The good news is, that’s about 16 percent less than the national average. If you’re one of Minnesota’s 3.4 million licensed drivers, read on to learn more about driving and insurance requirements.

Car Insurance Required in Minnesota

These are the required limits to meet the minimum coverage in Minnesota:

• Bodily injury: You will need a minimum of $30,000 in bodily injury liability coverage per accident involving one person, or $60,000 per accident involving two or more people. Bodily injury coverage pays for the treatment of injuries you cause to someone else. It does not include the injuries of you or your passengers.
• Property damage: You’ll also need a minimum of $10,000 coverage for property damage liability. This coverage pays for damage you cause to someone else’s property — often their car, but also other property that your car hits.
• Uninsured/underinsured motorist (UIM): Minnesota requires a minimum of $25,000 in uninsured/underinsured motorist coverage per accident involving one person, or $50,000 per accident involving two or more people. UIM coverage reimburses you if someone without auto insurance (or with insufficient insurance) hits your car, including hit-and-run incidents.
• Personal injury protection (PIP): Minnesota is a no-fault state, meaning it requires personal injury protection. PIP pays for losses you or your passengers sustain in an accident. You’ll need at least $40,000 per person per accident ($20,000 for medical expenses and $20,000 for nonmedical expenses such as lost wages and replacement services).

Is the Minimum Amount of Coverage Enough in Minnesota?

Bodily injury, property damage, UIM, and PIP coverage are a good foundation, but you’ll probably want to add supplemental coverage like comprehensive coverage and collision coverage.

Comprehensive

About 78 percent of drivers purchase comprehensive coverage, which reimburses you for events like theft, vandalism, fire, and extreme weather.¹ In some cases, it also pays for broken windshields, though it never covers regular wear and tear.

Collision

Collision coverage pays for damage to your car resulting from a collision with another car or an object — even if you’re at fault. It also covers damage sustained from potholes. Unless you can afford to buy another vehicle with cash in the event of an accident, we recommend purchasing this type of coverage.

For both collision and comprehensive coverage, the limit is your car’s actual market value.

Average Rate of Car Insurance in Minnesota

On average, the cost of car insurance in Minnesota is $881 annually: $487 for liability coverage, $269 for collision coverage, and $217 for comprehensive coverage.²

That said, we’ve seen estimated annual rates from $319 to $6,277 for young drivers. The cost will depend on coverage levels for liability insurance and beyond. Be sure to get a car insurance quote from multiple providers before choosing one.

Available Insurance Providers in Minnesota

The following companies offer auto insurance in Minnesota:

• AAA
• Allstate
• American Family
• Amica
• Auto-Owners
• Country Financial
• Direct
• Esurance
• GEICO
• Iowa Farm Bureau
• Liberty Mutual
• MetLife (now Farmers)
• National General
• Nationwide
• North Star Mutual
• Progressive
• QBE
• State Farm
• The General
• Travelers
• USAA
• West Bend
• Western National

How Can I Lower My Premiums in Minnesota?

If you’re looking to save on car insurance, here are some ways you can lower your costs:

1. Use discounts. Check with your insurance provider about getting a discount. Companies offer discounts for things like GPS monitoring, being a good student, using other safety features, and having a clean driving record.
2. Bundle. Look into bundling your auto insurance with other policies, like homeowners or renters insurance, life insurance, and business insurance.
3. Raise your deductible. If you can afford it in the event of a claim, consider raising your deductible for comprehensive or collision claims.
4. Lower your limits. By lowering your coverage liability limits, you can decrease your premiums. However, your payout will be lower if you have to file a claim, so saving now could mean paying more down the line.

Proof of Car Insurance in Minnesota

To drive in Minnesota legally, you need proof of auto insurance, either physical or digital. Some insurers provide digital proof of insurance on their mobile apps, which you can add to a smartphone wallet for convenience. Your provider may also offer a downloadable PDF.

If you’re caught driving without insurance, you’ll face a fine of at least $200, license and registration suspension until you provide proof of insurance, and possibly jail time, community service, and vehicle impoundment. The penalties increase after the first two offenses.³

Driving Laws in Minnesota

In addition to auto insurance requirements, it’s good to familiarize yourself with state driving laws. That way, you avoid penalties, fines, and license suspensions and revocations.

Fault System

Minnesota is a no-fault state, meaning that if you cause an accident, you are responsible for the other party’s property damage but not their medical costs. You and the other party each pay your own medical costs.

If the victim sues the perpetrator, the defendant’s liability is reduced in proportion to the plaintiff’s fault, so long as the plaintiff’s fault is less than the defendant’s. If the plaintiff is 50 percent at fault, and there are multiple defendants, each less than 50 percent liable, the plaintiff can’t recover money in a civil suit.⁴

Uninsured Motorists

Minnesota requires all drivers to carry uninsured and underinsured motorist coverage. That said, only 1 in 10 drivers in Minnesota are uninsured, which is 26 percent below the national average.⁵ UIM coverage in Minnesota isn’t stacked, meaning you can’t combine your UIM coverage across multiple cars on a policy.

DUI Laws

In Minnesota, a DUI stays on your record for 10 years. After your first offense, you will face a 90-day license suspension, though you may receive driving privileges after 15 days. The court can use its discretion to require the installation of an ignition interlock device.

Seat Belt Laws

Minnesota’s seat belt law is under primary enforcement, meaning the police can pull you over solely for being unbuckled (as opposed to needing another reason, like speeding). The state requires seat belts for the driver and all passengers. Drivers receive tickets for unbuckled passengers 14 and younger; individuals 15 and older will receive tickets directly. A seat belt ticket is $25, but with fees, it can cost up to $100.

Distracted Driving Laws

Distracted driving includes texting and driving, talking on the phone while driving, and even changing the music while driving. Since 2016, distracted driving has caused 1 in 9 crashes in Minnesota, resulting in 960 serious injuries and 155 deaths.⁶ Not only is distracted driving extremely dangerous, but it can also result in fines and other consequences.

Minnesota’s hands-free law makes it illegal for drivers to read, send texts and emails, and access the web while the vehicle is in motion or a part of traffic. It’s illegal for drivers under 18 to use a cell phone, even hands free, except in emergency situations.

The minimum fine for a first ticket is $120. Subsequent offenses start at $300. You may also face increased insurance rates. If you injure or kill someone while driving distracted, you can face a felony charge of criminal vehicular operation or homicide.

Teen Driver Laws

For the first six months they have their licenses, teen drivers cannot drive between midnight and 5 a.m., except in the following circumstances:

• They are accompanied by a licensed driver age 25 or older.
• They are driving to and from their home and place of employment, or for employment purposes.
• They are driving between their home and a school event for which the school has not provided transportation.

During the first six months, Minnesota law also limits teen drivers to one passenger under age 20. For the second six months of licensure, the limit is three passengers under age 20. The limit does not apply if a parent or guardian is present, or if the teen passengers are members of the driver’s immediate family.

Statute of Limitations for Claims

In Minnesota, you have six years following an incident to file property damage claims and two years for personal injury claims. If you wait longer, your insurance company isn’t obligated to pay for your claim.

Cancellation and Non-Renewal Notification Laws

If your insurance provider wants to cancel your insurance policy midterm, it has 59 days to notify you prior to the effective date, regardless of whether the cancellation is due to nonpayment of premiums. If the company decides not to renew your policy at the end of its term, it must give you 60 days’ notice prior to the policy’s expiration date.

Auto insurance companies cannot cancel policies that have been in force for over 60 days, except in the following circumstances:

• You don’t pay the premium.
• You have committed fraud or misrepresentation on your application.
• Your driver’s license has been revoked or suspended.

In contrast to cancellation, non-renewal means that either you or your insurance provider has decided not to renew the policy once it expires. Insurance companies must give you notice and explanation in order to drop your policy. A provider might not renew your policy because it no longer offers that type of insurance, it doesn’t want to write so many policies in your area, or you have a drunk driving conviction.

Self-Insurance

Minnesota allows individuals who own more than 25 vehicles to self-insure their vehicles. To do so, they will need to provide proof that their current net worth (or equivalent) is at least $5 million.

Car Inspection Requirements

Minnesota does not require yearly inspections for personal vehicles. That said, it’s still important to keep up with your vehicle’s maintenance.

SR-22s

An SR-22 is a financial responsibility insurance certificate — proof of minimum insurance. In many states, you must carry an SR-22 after certain convictions, such as drunk driving. However, Minnesota is one of six states that do not require this form.

Defensive Driving

Defensive driving is an approach to driving that uses specific strategies to avoid hazards on the road. Taking a defensive driving course may lower your insurance costs. After a traffic violation, the court may require you to take a defensive driving course. In Minnesota, defensive driving courses are four to eight hours long and available both in person and online.

Serious Injury and Monetary Thresholds

Because Minnesota is a no-fault state, you have a limited right to sue for injuries and other noneconomic damages after an accident. In order to sue, you’ll need to reach either a monetary threshold of $4,000 (meaning you lost at least that amount) or a serious injury threshold of 60 days of disability, permanent injury, or permanent disfigurement. If you don’t meet these thresholds, you won’t be able to file a civil suit against the other party.

Accident Reporting Requirements

In Minnesota, you must report an accident to the police if it involved injury or property damage worth over $1,000, or if someone died in the accident. You have up to 10 days after the accident to report it. If you don’t, the state could suspend your license.

Pricing Discrimination

Unfortunately, like most states, Minnesota allows insurance companies to discriminate based on credit score when determining your premiums. The state also allows companies to discriminate on the basis of gender, so men pay more for car insurance in Minnesota.

When Is a Vehicle Declared a Total Loss?

A total loss means a vehicle’s repairs will cost more than the state’s threshold. In Minnesota, if the repairs cost more than 70 percent of the car’s actual market value, it’s declared a total loss.

For example, if your vehicle’s actual market value is $10,000, and the repairs cost $7,000 or more, it’s a total loss. Your insurance company will pay out the car’s market value unless you have gap insurance or new car replacement coverage, which accounts for depreciation and helps you purchase another vehicle.

Contact Information

We hope the following contact information will make it easier to navigate auto-related bureaucracies in Minnesota.

Registration

If you’re a new resident in Minnesota, you have 60 days to register your vehicle. You can apply in person at the DMV or by mail. To register your vehicle, you need the following:

• Proof of vehicle ownership (title or registration)
• Completed Application to Title and Register a Motor Vehicle (Form PS2000), which you can download at https://dps.mn.gov/divisions/dvs/forms-documents/Documents/MV_TitleandRegisterMotorVehicleApplication.pdf
  • Note: If you own the vehicle with another person, only one of you has to sign the application.
• Vehicle’s current odometer reading
• A form of identification, expired less than five years with a photo and less than one year without a photo
  • Note: If you’re bringing a driver’s license from a state other than Minnesota, you will need to bring an additional primary form of identification, like a passport.

Here is the contact information for the Minnesota DMV:

How to Get a Copy of Your Vehicle Title

To request a copy of your vehicle’s title, follow these steps:

1. Print and fill out an Application for Duplicate Title, Registration, Cab, or Lien Card, which you can download at https://dps.mn.gov/divisions/dvs/forms-documents/Documents/MV_DuplicateTitle_Reg_Cab_LienCard_Application.pdf.
2. Bring the form to a deputy registrar’s office.
3. Prepare to pay any necessary title or transfer fees. These are the typical fees:
   • Title fee: $8.25 (plus $2 for each lien recorded)
   • Transfer tax: $10
   • Public safety vehicle fee: $3.50
   • Technology surcharge: $2.25
   • Filing fee: $11
   • Motor vehicle tax, which depends on your vehicle: https://dps.mn.gov/divisions/dvs/Pages/motor-vehicle-sales-tax.aspx

   You can find additional information on fees at https://dps.mn.gov/divisions/dvs/Pages/title-transfer-fees.aspx.

4. If you prefer to apply by mail, send the application form and payment to this address:
   • Driver and Vehicle Services – Central Office
   • Town Square Building
   • 445 Minnesota St., Suite 187
   • St. Paul, MN 55101-5187
5. If you choose to apply by mail, you can verify your fees by emailing DVS.motor.vehicles@state.mn.us.

How to Contact Minnesota’s Insurance Department

If you have questions about auto insurance in Minnesota that we didn’t cover, use the following information to contact the state’s insurance department.

Cost of Car Repairs in Minnesota

At $371.31, the cost of car repairs in Minnesota is on par with the national average. This includes $149.82 for labor and $221.49 for parts.

Crime and Fatalities in State

Because insurance companies consider crime a risk factor, local crime will affect insurance rates. Areas with more crime, along with more traffic fatalities, have higher average costs of auto insurance.

Vehicle Theft

In 2020, there were 250 vehicle thefts per 100,000 Minnesotans, which is just 2 percent higher than the national average. Usually, auto theft and accidents happen more often in cities, which can raise the cost of insurance. You can find vehicle thefts by city in the chart below.

Fatalities

In 2019, Minnesota saw 364 vehicle crash fatalities for every 100 million vehicle miles traveled. That’s about half the national average.

Conclusion

You’re ready to hit the road in Minnesota! If you want to learn more about driving elsewhere, check out our state driving guide, which covers the same ground in other states.