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Minnesota Car Insurance

Auto Insurance Basics in Minnesota

Due to the prevalence and potential financial impact of car crashes, virtually every state in the union requires drivers to carry insurance in order to provide economic protections to their population. In obtaining car insurance you enter into a contract with a company. For your part, you agree to pay an insurance provider a certain amount of money, usually for 6 or 12 months of coverage. In return the carrier agrees to take on a certain amount of financial liability for injuries, death, and property damage in the event that you or someone driving your vehicle gets into an accident. You are generally free to cancel car insurance at any time during the contracted term of the policy, but check with your carrier for details. However, be aware that insurance is required to register and drive a vehicle in Minnesota.

The basic auto insurance product is known as liability insurance. This product agrees to cover medical and property damage costs to another party in the event that they suffer such losses in an accident you caused. There are two things Minnesota drivers should keep in mind with liability insurance. First, there is a well defined maximum amount the carrier agrees to pay out on your behalf. If you cause an accident that results in injury or property damages in excess of that amount, you may be liable for additional cost. Second, insurers require that you pay the first dollars of damage claims out of your own pocket before they start to pay. This is known as your deductible. Most car insurance carriers in Minnesota will offer motorists liability insurance with different ranges of maximum payouts and deductibles.

As stated, liability insurance protects you against damage claims from other drivers. In order to protect yourself from losses you should consider getting collision insurance, comprehensive insurance, uninsured/underinsured protection or personal injury insurance. Collision insurance helps pay for repairs in the event your car is damaged in an accident. Comprehensive insurance will help pay for losses due to theft or vandalism of your vehicle, for weather-related damage, and other non-accident related events. You can buy financial protection in the event that you are in accident where your own damages exceed the insurance coverage of the responsible party. A product known as PIP, or personal injury protection, provides additional medical coverage for you or a passenger in your car

Finally, Minnesota drivers can buy additional specialized auto related protections such as roadside assistance, replacement vehicle coverage and protections that will help pay off a leased vehicle in the event that it gets totaled.

Auto Insurance Requirements in Minnesota

Minnesota follows the “no fault” model of car insurance. This means that in the event of an accident you are usually limited to seeking compensation from your own insurance company, even if the other party caused the accident. No fault insurance generally reimburses consumers more quickly for accident relayed damages than an “at fault” model, by reducing or eliminating small claims lawsuits.

Minnesota requires that drivers carry $30,000 in bodily injury coverage, $60,000 for multiple injuries, $10,000 for property damage, and $25,000 for personal injury protection. Be aware that these dollar limits are minimum amounts. In the event that you cause an accident resulting in damages higher than these minimums, you may be held personally liable for making up the difference.

Average Cost of Coverage in Minnesota

The average cost for a middle-aged safe driver in the United States with full liability, collision and comprehensive insurance is roughly $1,400. The average Minnesota driver can expect to pay around 10% less than that. Bare minimum coverage will, of course, cost you less money. There are many factors that will determine the cost of your coverage. Drivers without accidents or serious moving violations will almost always get preferred rates. Young, or newly licensed drivers can expect to pay more than experienced drivers. Drivers with a strong credit record will pay less than those with poor credit. As you can see, there are many things that get factored into the costs of your insurance.

Age Average Premium (yearly)
16 $6,278
17 $5,381
18 $5,147
19 $2,839
20s $1,692
30s $1,223
40s $1,161
50s $1,068
60s $1,132
70s $1,349

Cheapest Car Insurance Companies in Minnesota

Current or retired members of the armed forces should look into some specialized carriers such as USAA that cater exclusively to that market and will provide significant discounts. For the rest of Minnesota drivers, it is difficult to say for certain which carrier would provide the lowest cost coverage. There are too many variables that influence the price of a policy. There are many insurance providers competing to provide insurance to Minnesota drivers, from nationally known name brands to smaller regional insurers. The best advice is to shop around for the best quote.

Rank Company Avg. Premium (annual)1 Travelers $6522 Farm Bureau Mutual $8193 The Hartford $9414 Auto-Owners $1,1735 USAA $1,2596 American Family $1,3127 State Farm $1,3718 Western National $1,379

Unique Car Insurance Rules and Penalties in Minnesota

As mentioned, Minnesota requires drivers to carry personal injury protection in their insurance policies. Driving without insurance can open yourself up to fines that start at $200. In addition, you could face suspension of your license and vehicle registration and even jail time for multiple offenses. The state bans of use of cell phones, even hand-free devices, while driving for newly licensed motorists.

Violation Avg. Annual Auto Insurance Rate % Insurance Rate Increase $ Insurance Rate Increase
Hit and Run $2,097 63% $809
Refused Breathalyzer/Chemical Test $1,924 49% $636
DUI $1,924 49% $636
Racing $1,753 36% $465
Reckless Driving $2,097 63% $809
Driving with a Suspended License $2,097 63% $809
At-Fault Accident $1,902 48% $614
Driving with an Open Container $1,758 36% $470
Operating a Vehicle Without Permission $1,631 27% $344
Passing a School Bus $1,641 27% $353
Improper Passing $1,641 27% $353
Following Too Closely $1,613 25% $325
Speeding $1,604 25% $316
Failure to Stop at a Red Light $1,626 26% $339
Illegal Turn $1,613 25% $325
Driving Wrong Way/Wrong Lane $1,563 21% $275
Failure to Yield $1,613 25% $325
Speeding in a School Zone $1,580 23% $292
Driving Too Slowly $1,580 23% $292
Distracted Driving $1,536 19% $248
Driving with Expired Registration $1,300 1% $12
Failure to Show Documents $1,300 1% $12
Not-at-Fault Accident $1,380 7% $92
Failure to Use Child Safety Restraint $1,300 1% $12
Failure to Wear a Seat Belt $1,300 1% $12
Driving Without Lights $1,288 0% $0

How to Get the Cheapest Car Insurance in Minnesota

If you want to get the best car insurance process in Minnesota get no cost, no obligation quotes form at least three vendors. More if possible. As we’ve stated, rates can vary materially from company to company. Shop around and you will doubtlessly save money. Take a look at our free online pricing tool at General.com. It’s fast and easy and will help you save.

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