Minnesota Car Insurance Requirements and What They Mean for Your Car Accident

Minnesota car accidents occur for a variety of reasons and often result in severe injuries. But obtaining compensation for those injuries through insurance can get very complicated very quickly. The following is a look at the different car insurance requirements in Minnesota and how they will affect your ability to get the money you need to pay for your accident-related expenses.

You’d like to think insurance companies would do the right thing and give you the compensation you deserve, but it doesn’t always work out that way. When it doesn’t, a McEwen & Kestner car accident attorney will be ready to fight for your rights. Schedule a free consultation by calling 800-732-3070 or contacting us online.

Minnesota is a No-Fault State

Minnesota is a no-fault state, meaning drivers involved in a car accident must turn to their insurance company for compensation, regardless of who caused the accident. This system streamlines the process of determining fault, avoiding lengthy legal battles, and ensuring that accident victims receive compensation on time.

Car Insurance Requirements in Minnesota

These are car insurance requirements in the state of Minnesota.

Bodily Injury Liability

Bodily Injury Liability (BIL) provides coverage for injuries that you may cause to another person in a car accident where you are at fault.

BIL coverage protects you financially in case of an accident where you cause injury to another person. It can help cover the cost of medical bills, lost income, and other related expenses for the injured person, as well as provide coverage for legal fees and other related expenses if they sue you.

You need to know that BIL coverage only covers injuries to other people, not your injuries. If you want coverage for your injuries in a car accident, you’ll need to purchase additional coverage, such as PIP coverage.

Property Damage Liability

Property Damage Liability (PDL) is a type of car insurance that provides coverage for damage to another person’s property in case of a car accident where you’re at fault.

PDL coverage can help cover the cost of repairing or replacing the damaged property and provide coverage for legal fees and other related expenses if the other driver sues you.

PDL only covers damage to other people’s property, not yours. If you want coverage for your car or property, you’ll need to purchase additional coverage, such as collision or comprehensive coverage.

Personal Injury Protection (PIP)

PIP insurance covers medical expenses, lost income, and other related expenses if you or your passengers are injured in a car accident, regardless of who was at fault. As mentioned earlier, PIP insurance is also known as no-fault insurance because it pays out benefits regardless of who caused the accident.

PIP insurance can help cover medical expenses such as hospitalization, doctor visits, and rehabilitation, as well as lost income due to an inability to work. PIP insurance can also provide benefits for other expenses such as childcare, household chores, and transportation to and from medical appointments.

Minnesota drivers must carry a minimum of $40,000 in PIP coverage. Half goes toward medical expenses, while the other half can go toward any non-medical costs from the accident. PIP insurance also covers up to $2,000 in funeral expenses if the accident results in death.

Uninsured/Underinsured Coverage for Bodily Injury

Uninsured/underinsured motorist (UM/UIM) coverage covers your accident-related expenses if you or your passengers suffer injuries in a wreck with a driver who either has no insurance or insufficient insurance to cover the damages. UM/UIM coverage protects you and your passengers from potential financial hardship. The amount of coverage and the cost of UM/UIM insurance in Minnesota can vary. Insurance companies charge differently for all coverage levels.

Optional Car Insurance Coverage in Minnesota

While Minnesota law doesn’t mandate drivers carry the following types of coverage, it’s a good idea to purchase the following:

UM/UIM for Property Damage

When a driver is at fault in an accident, they’re responsible for damage caused to another person’s property. However, if that driver is uninsured or underinsured, the property owner may have to cover the repair costs.

UM/UIM coverage for property damage provides an additional layer of protection in these situations. If the at-fault driver is uninsured or underinsured, the policy will cover the cost of the property damage.

Medical Payments Coverage (MedPay)

MedPay covers you and your passengers, regardless of who was at fault for the accident. Med Pay coverage can help cover medical expenses such as ambulance fees, X-rays, and medication. Med Pay coverage is separate from your health insurance; you can use both to cover your medical expenses.

Collision Insurance

Collision insurance covers damage to your car in case of a collision with another car or object. You can receive compensation from this coverage even if you’re to blame. If you purchase collision coverage, it can help cover the cost of repairing or replacing your car after a collision.

Comprehensive Insurance

Comprehensive insurance covers you for damage not caused by a collision. It’s a form of optional coverage that can protect you in case your vehicle suffers damage. Causes of damages may include theft, vandalism, fire, or some other type of event, such as a natural disaster.

Minnesota Penalties for Driving Without Minimum Required Insurance

The penalties for not having the minimum auto insurance coverage are steep. A first offense can result in a fine from $200 to $1,000 and a jail sentence of as long as 90 days. If police repeatedly cite you for failing to have insurance, the punishments are significantly worse.

Penalties can include:

  • A fine of up to $1,000.
  • Loss of your license and registration.
  • A jail sentence of as long as a year.

Contact McEwen & Kestner to Schedule a Free Case Evaluation

Talk to a McEwen & Kestner attorney if you’re having issues obtaining compensation through insurance. We’ll investigate the cause of the accident, then negotiate with the insurer to help you get what you deserve. If negotiations don’t work, we’ll have the proof to win your court case.

Use our online contact form or call 800-732-3070 for a free case review.

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