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Minnesota Car Insurance

Residents of Minnesota are subject to the State's no-fault insurance requirements. The no-fault requirement was designed to ease burden off of the court system to in some circumstances avoid the need for proving fault to collect on insurance proceeds. The cornerstone of the no-fault system is Personal Injury Protection (PIP) coverage. This is coverage that covers your personal injuries up to the designated amount regardless of who was at fault in an accident. The no-fault statute does not apply to property damage liability.

While many states adopted no-fault statutes over the years, most states have had difficulty in containing insurance rates on account of the PIP coverage. Minnesota is somewhat of an exception to this rule as rates in most National surveys place the State in the middle of the pack on average rates. Much of this is due to the limited nature of the no-fault system in Minnesota

How No-Fault Works In Minnesota

At it's core, in addition to purchasing bodily injury liability coverage that insures you against claims from another person you injure on account of being at fault in an accident, residents purchase PIP coverage that insures them for bodily injury regardless of fault. The PIP coverage is for a stated amount and the insured can select the amount of coverage to purchase. The minimum required PIP coverage amount is $40,000. If the PIP insurance has been exhausted, an injured person can still recover under the bodily injury liability coverage of the policy if they can prove fault. In essence, PIP coverage is a first line of defense designed to prevent litigation over somewhat smaller claims.

In most additional respects, the Minnesota insurance system is fairly consistent with that found in other States. The state still requires that drivers maintain $30,000 per person and $60,000 per accident of bodily injury liability, $10,000 of property damage liability and $25,000/$50,000 in uninsured/underinsured coverage. Many drivers opt for coverage over these minimums to protect their personal assets.