What is the minimum insurance policy that Minnesota requires?
Minnesota Minimum Car Insurance Requirements
Minnesota Auto Insurance Minimum Coverage Requirements
Minnesota requires the following minimum coverages on your car insurance: Bodily injury liability: $30,000 per person and $60,000 per accident. Property damage liability: $10,000. Personal injury protection (PIP): $40,000.
The minimum amount of car insurance you'll typically need is state-required liability coverage. This allows you to pay for some, if not all, injuries and damages you're liable for in an accident. The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person.
Liability insurance: Almost all states require a minimum amount of liability insurance. This coverage helps pay for any injuries or damages you cause in a car accident, including those of the other driver and their passengers.
| State | BI | PD |
|---|---|---|
| Arizona | $25,000 per person; $50,000 per accident | $15,000 per accident |
| Arkansas | $25,000 per person; $50,000 per accident | $25,000 per accident |
| California | $15,000 per person; $30,000 per accident | $5,000 per accident |
| Required min. limits | |
|---|---|
| Bodily injury (BI) | $30,000 per person/$60,000 per accident |
| Property damage (PD) | $10,000 per accident |
| Uninsured/underinsured motorist BI (UMBI/UIMBI) | $25,000 per person/$50,000 per accident for each |
Auto insurance is required by Minnesota law. If you have a car loan, your lender may also require additional coverage such as collision and comprehensive coverage. Policies will vary beyond what is required by law and every policy will have limitations on what it covers and to what extent.
- Per-occurrence limits: The maximum amount an insurer will pay for a single event/claim.
- Per-person limits: The maximum amount an insurer will pay for one person's claims.
- Combined limits: A single limit that can be applied to several coverage types.
The 80% rule means that an insurer will only fully cover the cost of damage to a house if the owner has purchased insurance coverage equal to at least 80% of the house's total replacement value.
Minimum coverage car insurance will help pay for the injuries and property damage you cause if you're the driver in the at-fault accident. In some states, minimum coverage car insurance also includes PIP and uninsured motorist coverage, which can help pay for your injuries in a variety of scenarios.
What two types of insurance are mandatory?
The two aspects of this type of coverage are bodily injury and property damage protection, and most states require drivers to carry a minimum limit of each.
The Bottom Line
Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have.
All drivers must have motor vehicle liability insurance.
Your policy must provide at least the following minimum liability coverage: • $25,000 for injury or death of one person; • $50,000 for injury or death of two or more people; and • $10,000 for property damage.
The minimum level of coverage required by state law is: $25,000 per person for bodily injury. $50,000 per accident for bodily injury. $25,000 per accident for property.
Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage.
Minnesota is a "no-fault" car insurance state, which means your own car insurance pays for certain losses after an accident, no matter who caused the crash. Your options for pursuing a claim against anyone else are limited when you're injured in a car accident, unless your injuries meet a certain threshold.
What does Minnesota Law say About Underinsured Motorist Coverage? Under Minnesota law, all motorists are required to have both underinsured and uninsured motorist coverage. The minimum for underinsured motorist coverage is $25,000 to address possible death or injury of one person involved in an accident.
Uninsured motorist insurance will pay for many the claims you could have brought against the other driver such as a claim for your pain, suffering, injuries, loss of earning capacity, future medical care, and any wage loss and medical bills not paid for by your no fault coverage.
Minnesota doesn't require any driver to carry gap insurance. However, certain lenders in Minnesota may require gap insurance - short for guaranteed asset protection insurance - if you get a car loan or lease. Dozens of companies, including banks and dealerships, offer gap insurance in Minnesota.
McKayla Girardin, Car Insurance Writer
Driving without insurance in Minnesota is against the law, though, and the potential penalties include fines up to $3,000 and up to 12 months of imprisonment.
What is full coverage auto insurance in MN?
Full coverage insurance in Minnesota is usually defined as a policy that provides more than the state's minimum liability coverage, which is $30,000 in bodily injury coverage per person, up to $60,000 per accident, and $10,000 in property damage coverage.
Also known as your coverage amount, your insurance limit is the maximum amount your insurer may pay out for a claim, as stated in your policy. Most insurance policies, including home and auto insurance, have different types of coverages with separate coverage limits.
A limit is the highest amount your insurer will pay for a claim that your insurance policy covers. Think of it this way: It's like filling up a fishbowl. If you file a covered claim, your insurance policy will pay up to a certain amount. You're responsible for any expenses that exceed the limit.
A Single Limit policy provides one total amount that the insurer will pay for bodily injury and property damage as a result of one accident.
Public Law 15 (McCarran Act) is a congressional act of 1945 exempting insurance from federal antitrust laws to the extent that the individual states regulate the industry.
