What’s Minnesota Uninsured Motorist Coverage?

Let’s check out what kind of UM/UIM Minnesotans must have, how much each driver must have on their Minnesota auto insurance policy, and why drivers in the North Star State must have this coverage.

By law, Minnesotans must carry minimum limits of uninsured and underinsured motorist bodily injury coverage (UMBI/UIMBI). The coverage helps policyholders cover their medical expenses should they be injured in an accident caused by an uninsured or underinsured driver.  

In Minnesota, vehicle insurance is required by law for every driver with a car registered in the state. Auto insurance laws in the North Star State require drivers to have at least $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), $25,000 in UMBI/UIMBI per person, $50,000 in UMBI/UIMBI per accident, and $40,000 in personal injury protection (PIP).

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

Those caught driving without insurance in the North Star State may face penalties like fines, license and registration suspension, or even jail time. The legal penalties are only the tip of the iceberg when it comes to breaking this law, as there are hefty financial and insurance-related consequences to driving without sufficient coverage. Many drivers caught without the necessary minimum coverage must file for SR-22 insurance and risk being considered high-risk drivers by potential insurers for years to come. 

Since the North Star State is a no-fault state, drivers default to their own coverage in an accident, not another driver’s. In tort states, drivers rely on each other to use the at-fault driver’s liability coverage for their expenses in an accident. Drivers in no-fault states like Minnesota carry PIP to cover their medical expenses. 

However, should a policyholder be injured in an accident they didn’t cause, they may require more coverage than their PIP limit allows. In such a case, the fault must be assigned so the victim can recover the at-fault driver’s liability coverage.

If the at-fault driver has no liability coverage, they’re considered uninsured. Luckily, the policyholder could use their UMBI to cover their medical expenses up to their coverage limit. However, if their expenses exceed their coverage limit, the uninsured driver is then on the hook for the remainder of the victim’s expenses, not to mention their own.

If a driver with a minimum coverage policy causes an accident and the victim’s medical expenses exceed their PIP limit and the at-fault driver’s liability coverage, the victim may then invoke their UIMBI. Underinsured motorist coverage, or UIM, can cover the policyholder’s expenses that a sufficiently insured at-fault driver can’t cover.

Yes, all drivers in Minnesota need uninsured motorist coverage, specifically in the form of UMBI/UIMBI. 

Drivers who’ve held policies in other states may notice that states treat UM and UIM coverages a bit differently. For example, some states choose to separate UM and UIM coverages and typically only mandate UM coverage. Some states even combine UMBI/UIMBI and uninsured and underinsured motorist property damage (UMPD/UIMPD), with both facets of the coverage combined under UM/UIM coverage. 

While drivers in the North Star State must have a minimum limit of UMBI/UIMBI on their policies, they don’t have the option to add UMPD/UIMPD as some drivers do in other states. Instead, drivers can add collision coverage to their full coverage policies, which provides coverage for the policyholder’s vehicle repairs caused by both uninsured and insured drivers. 

While a full coverage policy isn’t legally necessary, it may be the wisest choice for some drivers. Plus, getting a policy from one of the top insurers in the state may help drivers ensure they get the coverage they need while remaining within their budget. 

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. However, many insurers offer stackable discounts, like bundling or multi-car discounts, to help policyholders lower their premiums even further.

In Minnesota, an uninsured motorist is anyone who doesn’t have enough car insurance coverage to comply with the state law. Laws in the state require drivers to have at least 30/60/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $40,000 in PIP. 

An uninsured motorist will either have a policy with insufficient coverage or won’t have a policy at all. Those caught driving uninsured may face legal penalties like fines, license and registration suspension, or jail time. Additionally, uninsured motorists face significant legal and financial consequences and may put their savings at risk when getting behind the wheel without an adequate policy.

While forgoing auto insurance coverage may be the easiest way to save money in the short term, each time an uninsured driver gets behind the wheel, they put their entire financial status at risk. Generally, it’s far easier to budget for an insurance premium than a worst-case car accident. Luckily, Minnesota is one of the cheapest states in the country for auto insurance, so residents may be able to afford a policy more easily than drivers in other states.

Whether you’re searching for a policy with higher UMBI/UIMBI limits than the legal minimum or are ready to bind your first policy 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, you can see all the rates you’re eligible for and make the most informed decision about your policy that makes sense for your needs and budget.

Luckily, quotes are our specialty here at Clovered. We even have a free quoting tool you can use to access your unique quotes quicker than it takes tourists to pronounce Bemidji correctly. If you’d rather chat with a professional, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.