Minnesota is a no-fault state when it comes to medical coverage due to an automobile accident in which injuries are involved. State law requires drivers to carry Personal Injury Protection (PIP) coverage in their Minnesota car insurance policy. PIP coverage pays for the costs of medical treatment for injuries related to the accident, as well as for any loss of income. Being no-fault means this coverage is available to you no matter who is at fault.
This PIP policy protects not only you but any family members as well. Even if you are a passenger in another party’s vehicle, you are covered by PIP.
As is true in most states, Minnesota car insurance is required to provide at the very least liability insurance coverage. This will help pay for the property damage and injuries to others in the case where you are at fault for the accident. How this works is, if you are at fault the other party’s PIP applies first for their medical costs. Then your liability coverage will pick up what is not covered by their PIP coverage.
Uninsured Motorist Coverage
Minnesota does require car insurance; however, that does not guarantee every driver abides by that law. This is where uninsured motorist coverage comes into play. It will cover any of your medical costs incurred in an accident with an uninsured motorist. This is only, however, the costs that remain after the PIP coverage is paid.
Underinsured Motorist Coverage
The same applies if you are in an accident caused by an underinsured driver. In such a case, first the PIP coverage applies and then the underinsured motorist coverage kicks in to pay medical costs not covered by PIP.
Other Insurance Coverage Options
For additional protection Minnesota car insurance offers various choices of coverage beyond the PIP, liability and uninsured and underinsured motorist coverage. For an addition cost Minnesota drivers can get collision coverage which helps with any other accident related damages to your vehicle. They can also get comprehensive coverage which would cover such things as vandalism to your vehicle or a storm dropping a tree on your vehicle.
According to a recent study by Insure.com, MN has an average annual premium $1,222 for car insurance. MN is ranked #29th highest among 51 states.
It is interesting to note that while the State of Minnesota does not require Comprehensive or Collision coverage, your lender in the case your vehicle is being financed, can require such coverage in their finance agreement as a means of protecting their investment. So read the fine print!
It is also of note that the coverage you pay for through a finance agreement will likely be far more expensive than if you added that Collision and Comprehensive coverage through your own car insurance provider.
As in all states that require auto insurance coverage, Minnesota requires Proof of insurance to be kept in your vehicle at all times. If you are in an accident or stopped for a traffic violation, you must produce this proof of insurance or face the risk of being ticketed for a misdemeanor. This comes with a minimum fine of $200 and possible revocation of your driver’s license.
If you are a Minnesota driver you should be aware of the laws and car insurance requirements in your state. They are for your protection and that of others on the road or who may be passengers in your vehicle.