Minnesota Auto Insurance
- Minnesota Auto Insurance
Whether you commute to the Twin Cities for work, head up to Lake Superior for some lakeside fun, or spend your days carting the kids to hockey practice across the North Star State’s many suburban towns, Minnesotans must have an adequate auto insurance policy.
With many fun things to do (and hockey gear to buy), it’s no wonder that getting the best and cheapest policy is at the top of many Minnsotans’ to-do lists. Let’s check out how you can get the best policy for your needs in the North Star State.
Minnesota Auto Insurance Explained
Minnesota auto insurance requirements mandate that all drivers have an active and adequate policy when on the road. While all drivers must maintain the coverage minimums required by law, drivers may opt for more coverage, depending on their values and needs.
Auto insurance is highly subjective depending on each driver and typically hinges on two main categories: cost and coverage.
Drivers who value cost over coverage will likely opt for a minimum coverage policy from an insurer that offers below-average base rates on their premiums. Drivers who value coverage over cost, however, will likely go for a full coverage policy from an insurer that offers a variety of optional coverages. Those who value cost and coverage equally will likely bind a full coverage policy with an insurer that offers below-average base rates and plenty of combinable discounts.
While drivers should always bind a policy that most closely aligns with their needs, it’s worth noting that full coverage policies are generally more comprehensive and, thus, the safer option for most drivers. While it’s perfectly legal just to carry the minimum amount of coverage required in the state, drivers may find they’re far more protected with a full coverage policy than a minimum coverage one.
What’s the Best Car Insurance in Minnesota?
The best auto insurance in Minnesota is subjective based on each driver. Still, it will likely be a full coverage policy from one of the state’s top insurers, like State Farm, Travelers, or Auto-Owners. Each insurer offers below-average base rates for many drivers, a range of optional coverages for those who opt for a full coverage policy, and plenty of stackable discounts to further one’s savings.
A full coverage policy in the North Star State will likely have collision coverage, comprehensive coverage, gap coverage, and higher limits of the legally required coverages.
There isn’t a one-size-fits-all “best” policy because auto insurance is subjective based on the policyholder. Drivers must tailor their policies to meet their individual needs, whether that shows a preference for cost, coverage, or a compromise between the two.
However, a full coverage policy is objectively the best option in terms of safety, as it allows policyholders to maintain as much coverage as possible for the many catastrophes that can occur on the road. Binding a full coverage policy with one of the state’s top insurers may help policyholders find the cheapest policy in the state that still meets their needs.
Top Car Insurance Companies in Minnesota
When searching for the best car insurance companies, Minnesota drivers will find it hard to choose from so many excellent options. Insurers like State Farm, Travelers, Auto-Owners, Allstate, and Geico offer base rates at or below the state average for drivers of all skill levels and ages. Each insurer offers competitively low base rates, several optional coverage options, and plenty of opportunities to combine discounts.
While there isn’t a standard “best” policy for every driver, many drivers may start their search for a policy that best meets their needs with the state’s top insurers. The average full coverage policy in the North Star State costs about $1,550 annually, or about 10% less than the national average of $1,670 annually, which is great news for drivers who value cost over coverage.
Since the average full coverage policy in the state is already below the national average rate, it’s easy for many drivers to find policies with rates even lower than the state average.
How To Get Cheap Auto Insurance in Minnesota
While cheap car insurance in Minnesota isn’t too hard to come by, considering the average premium in the state is nearly 10% below the national average, it can still take some research to find a policy within your budget. However, some drivers may see above-average premiums wherever they go, as auto insurance rates are highly subjective based on the driver.
Insurers in every state, not just Minnesota, consider many factors about each driver when determining their premiums. Such factors will always include a driver’s insurance history and driving record and may include inherent traits like a driver’s age, gender, or ZIP code, among other factors.
These factors help insurers assess a driver’s risk of filing a claim. Drivers may see above-average premiums if they’re at high risk of filing a claim, whether because they’ve previously been caught driving uninsured in the state or because their age or gender aligns with statistics that point to a higher-than-average risk of getting into an accident or filing a claim.
Some drivers can’t avoid paying above-average premiums, but luckily, Minnesota is one of the cheapest states for auto insurance. Even still, insurance premiums tend to vary over time, so while some folks may see above-average premiums while they’re a new driver or on the heels of an at-fault accident, their rates are likely to go down with time as long as they practice safe habits behind the wheel.
A minimum coverage policy will always be the cheapest policy in the state, as it contains about half the amount of coverage a full coverage policy may have. However, a minimum coverage policy may not always be the safest option. Many drivers can maintain a full coverage policy with rates below the state average without sacrificing coverage by using a few tricks of the trade.
What’s the Cheapest Car Insurance in Minnesota?
While the cheapest insurance in Minnesota will always be a minimum coverage policy, drivers may be able to maintain a full coverage policy for a fraction of the average rate. One of the best ways to save on a full coverage policy is to bind with an insurer that offers base rates below the state average. However, there may be a few more ways drivers can save on their premiums.
Many of the top insurers in the North Star State offer discounts their policies can use and stack on their premiums to reduce their rates even further. Typically, insurers offer two types of discounts: criteria and enrollment-based. While criteria-based discounts require minimal effort, only needing the policyholder to meet a set of standards, enrollment-based discounts require policyholders to play an active role in their savings.
Insurers typically offer a wide range of criteria-based discounts, like a multi-car discount for policyholders with more than one vehicle on their policies, a bundling discount for those who bind several policies with the same insurer, or a student discount for young drivers who earn good grades by their insurer’s standards. Criteria-based discounts are more widely available but won’t typically take off more than 10% of one’s premiums.
Enrollment-based discounts are relatively new, as most require a policyholder to use a telematics device to track and send their driving data to their insurer. Many insurers offer a usage-based discount, which awards policyholders based on the safe driving habits they practice behind the wheel. Insurers may also offer a pay-per-mile discount, which policyholders can use to save on their premiums if they drive fewer than 12,000 miles annually.
Average Car Insurance Rates in Minnesota Explained
The average cost of auto insurance in Minnesota is about $1,550 annually for a full coverage policy or about $775 annually for a minimum coverage one. Rates vary based on each driver and their policy, insurer, and driving record, so while some drivers may see rates at or below the state average, others may see rates far above it.
Minnesota is one of the cheapest states for auto insurance, even though it’s a no-fault state. The North Star State keeps average rates low because it has an average population, population density, and population of uninsured drivers. With average numbers in each category, there isn’t a higher-than-average number of claims being filed; thus, rates can stay below the national average.
Minnesota Auto Insurance Laws Explained
In Minnesota, minimum auto insurance is required for all drivers with vehicles registered in the state. Drivers must always have at least the minimum coverage required by law lest they face the legal and financial penalties of the crime.
Auto insurance laws in the North Star State require drivers to have at least $25,000 in uninsured and underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (30/60/10 liability coverage), and $40,000 in personal injury protection (PIP) because of the state’s no-fault laws.
Generally, it’s far easier for Minnesotans to budget for an insurance premium than a catastrophic accident with little or no coverage.
What Are the Minnesota Car Accident Laws?
While a minimum coverage policy is perfectly legal to carry, some drivers may find it doesn’t offer enough coverage, especially in the event of an accident. Because of the no-fault law, drivers must carry minimum PIP coverage in Minnesota. Drivers use this coverage to help them pay for their initial medical expenses following an accident, regardless of who caused it.
The mandatory coverage in the state provides Minnesotans protection for their own medical expenses through PIP, a victim’s expenses through liability coverage, and their own expenses should they be injured in an accident caused by an uninsured driver. However, they may not have enough coverage to feel fully protected. Minnesotans also aren’t required to carry coverage for their own vehicle repairs.
If a driver’s medical expenses exceed their PIP limit, the fault for the accident will be assigned so drivers can take the necessary next steps to invoke coverage. At-fault drivers with minimum coverage policies only have PIP coverage for their injuries.
In contrast, victims with minimum coverage policies may be able to rely on the at-fault driver’s liability coverage or their UMBI/UIMBI coverage if the at-fault driver was insufficiently insured. In all other scenarios, drivers with minimum coverage policies might be out of luck.
Accident laws in the state make it difficult but not impossible for drivers to sue each other due to the no-fault statute. However, carrying a full coverage policy is the easiest way to maintain safety on the road and peace of mind behind the wheel.
Is Minnesota a No-Fault State?
Since there is required no-fault insurance, Minnesota is a no-fault state. Drivers must ensure they have a sufficient amount of PIP, the mandatory no-fault coverage in the state, at all times.
Minnesota requires drivers to maintain no-fault coverage to alleviate the burden on the legal and insurance systems when tort laws are in place. Without tort laws, the insurance systems can process claims quicker, and drivers have less access to civil action following an accident in the North Star State.
The Consequences of Driving Without Insurance in Minnesota
Those who fail to carry adequate coverage in the North Star State may face severe legal and financial penalties. The legal penalties for the crime range from fines, fees, license and registration suspension, and jail time.
Drivers may owe up to $3,000 in fines and fees, have their license and registration suspended for up to a year, and face up to 90 days in jail or a comparable sentence of community service. Drivers must note that the legal consequences are just the tip of the iceberg when it comes to the penalties for driving uninsured in the North Star State.
Minnesotans who lack sufficient coverage may face serious financial consequences for the crime, on top of any legal penalties. Uninsured drivers are on the hook for every expense in an at-fault accident, including the victim’s bills. That’s not to mention any legal defense fees they may owe if the victim chooses to sue for damages.
In many cases, driving without coverage isn’t worth the risk, even if it can save you a few bucks in the short term. Generally, the cost of an at-fault accident while uninsured is far more than the average annual premium for a minimum coverage policy in the state.
Insurance with an SR-22 in Minnesota
In Minnesota, high-risk auto insurance is often for drivers who have a history of driving recklessly, without sufficient insurance coverage, or while intoxicated. High-risk drivers generally pay insurance premiums nearly double or triple the state average, as they’re far more likely to file a claim than the average Minnesotan.
High-risk drivers who have had their license and registration suspended will often require their insurer to file an SR-22 on their behalf. SR-22 insurance in the North Star State isn’t actually a separate policy or coverage but a form an insurer will file on behalf of the driver.
This form certifies that the high-risk Minnesotan has an active and adequate policy. The form itself isn’t costly, but having one on one’s record indicates one’s status as a high-risk driver and may cause insurance premiums to spike.
It’s essential to remember, though, that premiums ebb and flow over time. While they may be expensive immediately following an accident or infraction, they’ll even out over time as long as the driver tries to practice safe habits behind the wheel.
How To Find Auto Insurance Quotes in Minnesota
Whether new to the state, new to driving, or just curious about what rates you can score in the North Star State, getting and comparing quotes online is the best way to see what policies you might be eligible for.
Lucky for you, we’re quoting experts here at Clovered. We even have a free quoting tool you can use to access your unique quotes quicker than it takes to find a parking spot at the Mall of America. If you’d prefer to chat with a professional, you can contact someone directly from our team of licensed agents by calling us at 833-255-4117 or emailing us at firstname.lastname@example.org.
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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.