When you register your car in the state of Minnesota, your must be able to prove that you have the appropriate level of financial responsibility established to cover yourself and your vehicle. Some states offer alternative ways to establish financial responsibility but in Minnesota you can only do this by purchasing car insurance through a licensed carrier. The state does have a program in place if you have had a lot of claims or traffic violations on your driving record and present a high risk. The Minnesota Automobile Insurance Plan guarantees insurance to people who would ordinarily have to pay higher rates through insurers who cover riskier drivers.
Mandatory liability coverage is dictated by the insurance commissioner of each state. And while there are six major areas of coverage available your state has included liability, personal injury protection, property damage, uninsured motorist and underinsured motorist coverage as requirements to operate a vehicle on the roadways in Minnesota.
The exact details of the coverage include: liability or bodily injury of $30,000 for injuries to one person; $60,000 for injuries to two or more people; and $10,000 for property damage. In addition, you must have personal injury protection of PIP in the following amounts: $40,000 per person per accident; $20,000 for medical expenses; and $20,000 for non-medical costs like loss of income.
While many states do not require this, Minnesota mandates underinsured and uninsured motorist coverage for its drivers. Underinsured motorist coverage must be in the following amounts: $25,000 for injuries to one person and $50,000 for injuries to two or more people. Underinsured motorist coverage is in the same amounts.
Liability coverage or bodily injury pays for the medical expenses of the driver and passengers in the vehicle that you are at fault for hitting. The property damage coverage will pay for the damage to the other vehicle through repair or replacement of the vehicle.
While liability covers the expenses of the other party or parties involved in the accident, personal injury protection, or PIP, covers the medical expenses for you and any relative or non relatives who were passengers in your car at the time of the accident. It will also cover you if you and or a family member are injured while in someone else’s car, and if you are a pedestrian hit by a vehicle.
Collision insurance covers the repair and replacement of your vehicle when it is involved in an accident where you were at fault. Comprehensive coverage protects the value and replacement of your car in the event that it is damaged as a result of anything other than an accident, including theft or damage by flooding or storms.
Uninsured or underinsured motorist coverage pays your expenses if you get hit by someone who does not have any insurance coverage or not enough coverage to pay the required expenses. Uninsured motorist coverage also covers you if you are the victim of a hit and run accident.
It is against the law to drive in Minnesota without car insurance. If you are unable to provide proof when stopped by a law enforcement officer you could face fines from $250 to $1,000 as well as suspension of your license and jail time.