June 27, 2019

Minnesota Car Insurance

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The state of Minnesota is made up of thousands and thousands of miles of roadways, designed to take you everywhere from the Eastern Big Woods to the Twin Cities, and beyond. Each year, these roadways are used by more than 3.3 million drivers, each of whom drive more than 10,000 miles per year.

In the state of Minnesota, each person on the road is required to have a certain amount and type of auto insurance. Let’s dig into the specifics.

Auto Insurance Requirements in Minnesota

Minnesota is considered a no-fault state. What this means is that your insurance coverage is going to pay for any injury claim up to a specified amount, regardless of whose fault the accident was. Under this no-fault system, you actually lose some of the rights you have to sue for damages in the event of an accident.

The minimum insurance required of drivers in the state of Minnesota includes:

  • $30,000 required in bodily injury coverage per person, per accident/injury
  • $60,000 required in bodily injury for all individuals per each accident
  • $25,000/$50,000 in uninsured motorist bodily injury coverage
  • $10,000 in property damage liability coverage

Optional Auto Insurance Coverage in Minnesota

The state of Minnesota does not require that you carry any additional coverage, such as comprehensive, collision, or personal liability coverage. However, if you own any type of valuable assets or property, supplementing the minimum requirements mentioned above can add an additional layer of protection to ensure you don’t suffer extensive monetary losses.

Comprehensive insurance is used for repairing your vehicle if any type of physical damage occurs due to a non-collision caused accident. Some of these incidents include contact with animals, glass breakage, vandalism, fire, and theft.

Another type of optional insurance is collision coverage. This is used for repairing your vehicle if any type of physical damage occurs due to a collision with another object or vehicle.

Some of the other types of optional auto insurance include:

  • Loss of use – if you are unable to use your vehicle due to a covered loss.
  • Good as new vehicle replacement for a complete loss – there are various features that provide superior coverage for your vehicle.
  • Roadside assistance – you can opt for several types of roadside assistance to find the one that works for your budget.
  • Accident forgiveness – this is offered by a number of insurance providers.

Special Factors Impacting Auto Insurance in Minnesota

In the state of Minnesota, it’s very common for a person’s age to directly impact how much they pay for coverage year after year. In most cases, insurance premiums are going to be more expensive for teens, as companies view these drivers as more risky due to their inexperience.

For example, in this state, a 16-year-old is going to pay (on average) $6,278 per year for auto coverage, while someone who is between the age of 50 and 59 is only going to pay approximately $1,068 per year. Additionally, female drivers are more likely to have slightly higher rates than male drivers.

Keep in mind, the tier of coverage you select is also going to impact what you pay. In most cases, liability only coverage isn’t going to be as expensive, while a lower-deductible comprehensive policy is going to cost you more.

Minnesota Auto Insurance Rates vs. Other States

The average rates for car insurance in the U.S. are around $125 per month and $1,503 per year. The state of Minnesota is ranked at number 35 out of all states in how high their rates are; however, they are not over the national average. Right now, drivers can expect to spend approximately $113 per month on auto insurance, and $1,360 per year.

What Factors Determine Auto Insurance Rates in Minnesota?

The premiums for auto insurance in the state of Minnesota are determined by the Minnesota Department of Commerce Insurance Division.

There are several factors that can impact the premium you ultimately pay for your auto insurance coverage. These factors include:

  • If your vehicle is for personal or business use
  • The type of vehicle being insured
  • How long you have been driving
  • Prior auto insurance coverage
  • How often you drive
  • The geographic area where you are driving
  • Your past driving record
  • Your marital status
  • Your gender and age

The state of Minnesota also allows an insurer to consider your credit history to determine the premium you pay.

Getting Auto Insurance You can Afford in Minnesota

If you are ready to get quotes for Minnesota auto insurance, there are more than a few factors to consider. Getting the right policy is important, as it is going to ensure that you can legally drive on the roads in the state and that you won’t face significant fines if you ever are pulled over.

Remember, it’s a good idea to shop around and compare rates before making a decision and work with a reputable agent. There are some insurers that are going to provide discounts for good driving, good grades, bundling insurance policies, and more. Being informed is the best way to ensure you can stay safe and financially secure on the roads in Minnesota.