How Does Automobile Insurance Work in Minnesota?
Automobile insurance is required in the state of Minnesota. Just like every other state in the country, Minnesota sets car insurance coverage requirement minimums to ensure that, when accidents happen, those involved have a way to secure compensation for their losses. When a person buys insurance, the policy covers the person who purchases the insurance as well as relatives living in their home. This typically includes spouses, children, as well as others in your custody. Drivers who do not have an auto insurance policy of their own will also be covered if they are borrowing your vehicle.
Types of Coverage Required
There are various types of coverage that drivers are required to have in Minnesota. First, it is important to point out that Minnesota is a “no-fault” accident state. This means that drivers will turn to their own insurance carriers for coverage of their medical expenses in the event they are involved in an accident, regardless of who was at fault. The types of insurance coverage required in Minnesota include the following:
- Personal injury protection (PIP). This is the no-fault portion of Minnesota car insurance. After any accident, injured individuals will turn to their PIP coverage for injury compensation, lost income, replacement services, death benefits.
- Liability coverage. Liability insurance is in place to protect at-fault drivers. If you are at fault in an accident and the other person’s expenses rise above the limits of their PIP coverage, your liability coverage will pay the costs that go over their limits. Additionally, drivers must also maintain property damage liability coverage.
- Uninsured and underinsured motorist coverage. If your PIP coverage does not cover the costs of your injury and the at-fault driver does not have insurance or is underinsured, this type of coverage will help make up the difference in your expenses.
Minimum Coverage Requirements in Minnesota
The minimum requirements for car insurance under Minnesota law are as follows:
- Bodily injury liability: $30,000 per person and $60,000 per accident
- Property damage liability: $10,000
- Personal injury protection (PIP): $40,000
- Uninsured motorist coverage: $25,000 per person and $50,000 per accident
- Underinsured motorist coverage: $25,000 per person and $50,000 per accident
Factors Affecting Insurance Cost
There are various factors that can affect the cost of your insurance premiums in Minnesota. Some of the main factors that can affect insurance rates include:
- Marital status
- Years of driving
- Driving record
- Claims history
- Vehicle type
- Vehicle usage
- How many miles driven annually
- Types of coverage and deductibles
Get a Mankato Accident Attorney on Your Side
If you are injured in an accident in Minnesota, it may still be necessary to file a lawsuit against the at-fault driver, even though this is a no-fault state. If the person who is not at fault incurs more than $4,000 worth of medical expenses or experiences at least 60 days of temporary disability or permanent injury, then they may pursue legal action against the other driver. Any legal claim in a car accident case will only cover costs that are not covered under the personal injury protection insurance. Drivers may also file a lawsuit in order to recover compensation for property damage.
If you are considering filing a lawsuit against an at-fault driver in Minnesota, a Mankato car accident attorney can help you with this process. These cases can become complicated, but an attorney will have the resources and legal experience to walk you through this.