As a driver in Minnesota, you can generally expect your car insurance rates to go up after a car accident if you are found to be the at-fault driver. Statistics show that rates increase as much as 40 percent, on national average. However, Minnesotans experience even steeper price hikes – sometimes, as high as 87 percent. It is important to consult with a Minneapolis car accident lawyer to learn your options.
Minnesota’s Unique Insurance Laws
Minnesota is one of only a handful of no-fault states in the country. What this means is that drivers are expected to file claims with their own car insurance companies after accidents, regardless of who is at fault.
Every driver in the state is required to purchase at least $40,000 in personal injury protection (PIP) insurance to pay for their own losses. Unlike some other no-fault states, Minnesota also requires liability insurance coverage.
The minimum amounts that must be maintained are currently $30,000 per person and $60,000 per accident in bodily injury and death liability coverage, plus $10,000 for property damage. Uninsured and underinsured motorist insurance is also required ($25,000 per person and $50,000 per accident).
Insurance Impacts of At-Fault Accidents in Minnesota
In Minnesota, a car accident must be of a certain caliber or severity to count against you as a policyholder for insurance purposes. In general, a collision must have resulted in injuries, deaths or at least $750 worth of property damage to count as a “qualifying accident” for policy changes. These are the same standards for car accidents that lawfully must be reported to the police.
In addition, you must be found to be at least 51 percent at fault for the car accident for the insurance company to increase your premiums. Even if you share fault with another driver, expect your rate to go up if you have the majority share of fault after a crash investigation.
Average Insurance Rate Increases
On average, insurance companies in Minnesota raise rates by about 20 percent, all the way up to 87 percent after at-fault accidents. The amount that your car insurance policy will increase after an at-fault accident depends on the circumstances.
Insurance underwriters use a variety of factors to determine rate increases, such as:
- The severity of the car accident
- The cost of the claim for the insurer
- The policyholder’s percentage of fault
- Prior record and driving history
- The driver’s age and driving experience
- The protocols held by the insurance company (e.g., “accident forgiveness”)
An insurance rate increase after a crash can last for around three to five years. In general, serious and high-value Minnesota car accident cases reported to the insurer will result in higher and longer-lasting rate increases. A history of moving violations can also affect insurance rates.
What About a No-Fault Accident?
Minnesota law prohibits insurance companies from increasing your rates if you were not at fault for the accident. As long as you were less than 50 percent to blame, the rates for your automobile insurance policy should not increase.
If your rates increase without cause, consult with a car accident attorney about a possible case of insurance bad faith. An experienced personal injury lawyer can help you demand fair dealings from a car insurance company in Minnesota.