In Minnesota, before an individual is legally allowed to operate a motor vehicle, the car must be insured. All drivers must carry adequate amounts of car insurance as proof of financial responsibility in the event of a motor vehicle accident. Understanding Minnesota’s auto insurance requirements and how the no-fault system works can make it easier for you to navigate a car accident claim in Minneapolis, if necessary.
What Auto Insurance Is Mandatory in Minnesota?
Anyone who owns a vehicle in Minnesota must insure it with the proper amounts of automobile insurance. Having adequate coverage ensures that you have the funds to protect yourself from the costs of a car accident, as well as to pay for the bills of others if you are responsible for the crash.
Personal Injury Protection (PIP) Insurance
Minnesota is unique from most other states in that it operates under a no-fault insurance system. With this type of insurance law, crash victims seek coverage from their own car insurance policies, regardless of who is at fault. The main type of coverage required in no-fault states is personal injury protection (PIP) insurance.
PIP will cover your own economic losses as the policyholder. This can include your medical bills, the medical expenses of other members in your household (within state limits), funeral expenses in the event of a fatality, lost wages and replacement services. It does not cover your property damage. The minimum required amount of PIP insurance in Minnesota is $40,000.
Liability Insurance
Drivers in Minnesota are also required to carry liability insurance. This type of automobile insurance covers the expenses and losses of others if you are found to be at-fault for a car accident. State law requires drivers to carry at least $30,000 in bodily injury liability insurance per person, $60,000 per accident and $10,000 for property damage.
Uninsured and Underinsured Motorist (UM/UIM) Insurance
In the event of a car accident involving an at-fault driver who is illegally driving without the required amounts of insurance, you can rely on your uninsured and underinsured motorist (UM/UIM) coverage to pay for medical bills when PIP is not enough. The required amounts are $25,000 for injuries to one person and $50,000 for injuries to two or more people in both UM and UIM insurance.
Auto Insurance Requirements in Minnesota
Optional Types of Auto Insurance Coverage
In addition to the required types of auto insurance in Minnesota, drivers can purchase optional types of coverage for additional benefits. This includes collision insurance, which pays for vehicle damage after an auto accident, and comprehensive coverage, which can cover vehicle damage from anything other than a car accident. Rental car coverage is also available.
What Are the Penalties for Driving Without Insurance in Minnesota?
It is a misdemeanor to drive without automobile insurance in Minnesota. The penalties include a fine of $200 to $1,000, with repeat offenders facing up to $3,000 in fines for a second offense. A driver can also have his or her license suspended and face jail time, depending on the circumstances.
How Do You File a Car Accident Claim in Minnesota?
If you get into a car accident in Minnesota, you will start the claims process by contacting your own car insurance company. File a claim with your PIP insurance until you reach its limit. Then, if the other driver is at fault, file a claim with his or her liability coverage. If the at-fault driver is uninsured or underinsured, your policy will provide primary coverage, potentially supplemented by a third party. For more information and guidance about Minnesota’s car insurance requirements and the car accident claims process, contact the experienced team of car accident attorneys at Goldenberg Lauricella, PLLC, for a free consultation.