Minnesota Minimum Auto Insurance Requirements (2024)

In many states, drivers are financially responsible for any expenses or damages they create while behind the wheel, and this holds true in Minnesota as well.

Many drivers do not have the financial means to pay for the expenses associated with a car accident, so Minnesota requires its drivers to obtain auto insurance coverage in an effort to pay for some accident-related expenses. What are state minimums for car insurance in Minnesota? We’ll look at MN auto insurance requirements first.

When you learn more about Minnesota auto insurance minimum coverage requirements as well as the penalties for not being properly insured, you may be ready to start shopping around and comparing rates for a new MN auto insurance plan.

And while being uninsured in an accident can be expensive, you should be aware that Minnesota has hefty penalties for uninsured motorists as well.

Read out Minnesota auto insurance guide to learn everything you need to know Minnesota insurance laws, Minnesota state minimum auto insurance, and how to find the best cheap car insurance in Minnesota.

Make sure you are getting the best rate with our free quote tool above!

Minnesota Auto Insurance Minimums

What is the state minimum auto insurance for MN? You may be wondering how much auto insurance Minnesota requires its drivers to have.

Minnesota auto insurance laws from the MN Driver and Vehicle Services require a minimum amount of insurance that you need to drive legally, as you can see here for the state:

• Personal injury protection that includes $20,000 for medical coverage and $20,000 for loss of income
• $10,000 for property damage liability per accident
• $30,000 per person and $60,000 per accident for bodily injury liability
• $25,000 per person and $50,000 per accident for uninsured motorist coverage

Minnesota car insurance minimums pertain to most drivers who drive a car for personal use, but there are special situations when unique coverage requirements prevail.

For example, if your car is used for commercial or business purposes in this state, you may need to comply with other auto insurance requirements in Minnesota.

Average Cost of Car Insurance in Minnesota

So, how much is car insurance in Minnesota? The table below shows the average rates for car insurance in MN for the major insurers.

Minnesota Minimum Coverage Average Auto Insurance Rates

Who offer cheap car insurance in MN? For these major insurers, your rates will likely be cheapest with State Farm, USAA, and AMCO. But there are so many factors that go into car insurance rates in Minnesota that the only way to know for sure is to shop around.

And these are certainly not the only insurers in Minnesota. Other major insurers like Progressive, Nationwide, and Travelers also have a presence in the state.

Driving Without Car Insurance in MN

The penalties for breaking MN car insurance laws are significant. If you are caught driving without insurance in MN, you face penalties that include:

• Imprisonment
• A $200 fine
• The suspension of your car registration
• The suspension of your driver’s license

Keep in mind that you may face additional penalties if you commit insurance fraud. The best idea is to obtain the proper coverage and complies with MN minimum car insurance requirements at all times.

Minnesota State Minimum Car Insurance vs. Recommended Coverage

What coverage do I really need for auto insurance in MN?

With such significant penalties associated with not having the proper amount of Minnesota car insurance coverage, you understandably may be eager to start shopping for new coverage today.

Keep in mind that some drivers will purchase the minimum car insurance in Minnesota required by their auto lender and by the state in order to keep their premium amount as low as possible.

However, because any expenses that are not paid for by your insurance benefits are still your responsibility, some drivers choose to buy more than MN state minimum car insurance.

How to Buy Car Insurance in MN

Most Minnesota drivers will benefit from shopping around for new auto insurance rates every six months.

It can seem time-consuming to compare at least three to four MN car insurance quotes so frequently, but you can save time and energy with this endeavor by requesting online quotes from a few providers.

Remember that you need to focus your attention on finding highly reputable and established insurance companies as a first step, and you also need to decide which coverage types and amounts to buy before you request quotes.

While nobody wants to pay more than necessary for Minnesota auto insurance coverage, you also may not want to deal with the consequences of being underinsured.

How to Read Minnesota Insurance Requirements

Understanding Minnesota’s auto insurance requirements is a necessary first step to take to ensure that you are properly insured per state law. You will find that there are both optional and required coverages available to choose from.

Ensure that all of the state’s requirements met before you add optional coverage to your policy.

Remember that optional coverage can increase your premium, but it could potentially decrease your out-of-pocket expenses if you need to file a claim.

• Bodily Injury Liability – One of the required auto insurance types that Minnesota drivers need is bodily injury liability. This type of auto insurance covers the medical and health expenses for other parties if you cause injuries to other people in an accident.
• Personal Injury Protection (PIP) / Medical Payments – While bodily injury liability pays for other parties’ medical expenses, PIP pays for medical expenses caused by the accident for everyone in your vehicle. This is required coverage for Minnesota drivers, and it may be used in conjunction with your health insurance policy.
• Property Damage Liability – You are also responsible for a replacement or repair work on a vehicle belonging to someone else that is damaged in an accident you cause. Property damage liability pays for other parties’ damaged property, and this coverage type is required by MN auto insurance laws.
• Collision – Some lenders require drivers to have collision or comprehensive insurance. These are coverage types that pay for your own vehicle’s repair costs and other related expenses. With collision coverage, only vehicle damage sustained in a collision is covered.
• Comprehensive – With comprehensive insurance, the damage that is caused by a collision, a bad weather event, a flood, a fire, theft, and many other factors is covered.
• Uninsured and Underinsured Motorist Coverage – Driving without insurance is illegal in the state. Minnesota requires its drivers to have uninsured or underinsured motorist insurance. This insurance type provides compensation for your vehicle repairs, medical bills, and more if you are involved in an accident with a hit and run driver or an uninsured driver.

This video from Allstate touches on Uninsured Motorist Coverage and why you need it.

https://youtu.be/LH-6wizPE-g

When you are shopping for new insurance in Minnesota, you need to pay attention to the coverage types as well as the limits for each coverage type that you purchase.

The coverage type indicates the expenses that will be paid for through the policy, and the limit for each coverage types places a maximum dollar amount on the benefits that you may receive.