What Are the Minnesota Car Insurance Laws?

Whether you’re embarking on your annual summer trip to Prior Lake, heading into the Twin Cities for a taste of city living, or going about your daily life in one of the North Star State’s many suburbs, all drivers must ensure their Minnesota auto insurance policies meet the state’s minimum requirements. 

Minnesotans must always maintain some auto insurance coverage, according to state law. Let’s see how much coverage drivers must maintain, how auto accidents are handled, and other nuances about auto insurance in the Land of 10,000 Lakes. 

In Minnesota, car insurance is mandated by state law. All Minnesotans must have an active and adequate auto insurance policy each time they get behind the wheel, lest they risk the penalties for driving without insurance. 

All drivers with vehicles registered in the state must have at least $20,000 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), $25,000 in uninsured or underinsured motorist bodily injury (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and $40,000 in personal injury protection (PIP) since the North Star State is a no-fault state. 

Those who finance or lease their vehicles may also be required to have collision and comprehensive coverages.

Minnesotans with a policy that contains the minimum amount of coverage and nothing more are considered adequately insured in the eyes of the law. Those who are insufficiently insured are considered uninsured motorists and, upon incident, may face legal penalties like fines, license and registration suspension, or even jail time. 

Those who drive uninsured in the Land of 10,000 Lakes may even risk filing for SR-22 insurance and may be considered a high-risk driver for several years. 

In Minnesota, auto insurance requirements mandate drivers must have 30/60/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $40,000 in PIP. All drivers must adhere to these requirements or face penalties for driving uninsured. 

While drivers are only required to have a minimum coverage policy, many Minnesotans opt for a full coverage policy, as it provides far more protection for policyholders on the road.

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. In fact, Minnesota is one of the country’s cheapest states for auto insurance despite its no-fault laws and mandatory PIP. 

Generally, drivers in the North Star State opt for a full coverage policy over a minimum coverage one. Many of the top insurers in the state offer full coverage policies at below-average base rates and have plenty of opportunities for policyholders to combine discounts onto their policies to lower their premiums even further. 

Those with full coverage policies generally have higher limits of the required liability, UMBI/UIMBI, and PIP coverages. Additionally, many drivers will add comprehensive coverage, collision coverage, uninsured and underinsured property damage coverage (UMPD/UIMPD), medical payment coverage (MedPay), and gap coverage, to name a few. 

While a minimum coverage policy is perfectly legal, it may not be the best option for some drivers. Those who value coverage over cost and don’t mind spending some extra money to maintain their safety on the road will likely opt for a full coverage policy instead of a minimum coverage one. 

Generally, it’s easier to budget for an insurance premium than all the expenses associated with an at-fault accident while underinsured. 

In Minnesota, auto insurance minimum coverage requirements mandate drivers to have at least 30/60/10 liability coverage, 25/50 UMBI/UIMBI, and $40,000 in PIP at all times. Those who fail to carry such coverages may be considered uninsured and face consequences like fines, license suspension, and jail time. 

All drivers must maintain the minimum auto insurance in Minnesota and may face severe penalties if they’re uninsured in an accident. Drivers must have minimum limits of liability, UMBI/UIMBI, and PIP coverages on their policies. Let’s take a look at how these coverages protect policyholders in an accident and where the policyholder may opt for more protection.

The North Star State is a no-fault state, meaning accidents are treated on a no-fault basis. No-fault states typically require drivers to carry a first-party medical benefit (FPMB), like PIP, so drivers can default to their own insurance coverage in the event they need help covering the medical expenses they incurred in an accident. No-fault states generally require drivers to have FPMBs to lessen the burdens placed on insurance and court systems with tort or at-fault laws. 

Drivers who maintain a minimum coverage policy have PIP to cover their own medical expenses in the event of an accident. Drivers carry UMBI/UIMBI to cover their medical expenses should they be in an accident with an uninsured driver or a driver who doesn’t have enough coverage for the policyholder’s expenses. While the state is a no-fault state, drivers carry liability coverage to cover the victim’s expenses should the policyholder be considered at fault in an accident. 

While car accidents are initially treated on a no-fault basis, if the victim’s expenses exceed their PIP limit, they may need fault to be assigned to recover the at-fault party’s liability coverage. If the at-fault driver has a minimum coverage policy that doesn’t quite cover all the victim’s expenses, the policyholder may invoke their UIMBI to cover the difference. For any outstanding expenses, the victim may seek legal action.

Minnesotans with minimum coverage policies don’t have any coverage for their own vehicle repairs. Drivers may opt to boost their policies to full coverage to carry collision coverage for their own vehicle repairs.

Yes, Minnesota minimum car insurance requirements state all drivers must have an active and adequate auto insurance policy when they hit the road. Drivers who fail to maintain the minimum amount of coverage may face penalties like license and registration suspension, fines, or jail time. 

Not only are drivers legally required to have auto insurance, but they’re much better off with it than without it. Drivers who go uninsured put their finances at significant risk each time they get behind the wheel. 

Not only are uninsured drivers on the hook for all their expenses, but they’ll likely owe the victim for theirs, too. Plus, victims of accidents with uninsured drivers generally seek legal action, so uninsured drivers should also expect hefty legal fees. 

Yes, Minnesota requires car insurance. All drivers are required to have minimum limits of liability, UMBI/UIMBI, and PIP coverages. Those who don’t carry the legal minimum amount of coverage may risk significant legal penalties, financial consequences, and a dramatic increase in insurance premiums for years to come.

Whether you’re searching for a policy that meets or exceeds the minimum coverage requirements in the North Star State, the best way to find a policy that meets your needs is to get and compare quotes online. By getting and comparing quotes online, drivers can see all the policies and rates they qualify for and make the most informed decision about their policy.

Luckily, here at Clovered, we’re quoting experts. We even have a free quoting tool you can use to get free quotes in no time. If you’d rather chat with a professional, we have those too! You can contact one of our licensed agents at 833-255-4117 or [email protected].