Everything You Need to Know About Auto Insurance in Minnesot

Minnesota is a state located in the Upper Midwest region of the United States. Its name is derived from the Dakota Sioux word “Mnisota,” which means “sky-tinted water” referring to the many lakes in the area. The state is known for its culture and diverse cities, with Minneapolis and St. Paul being the largest. Visitors can explore the history and arts scene in these cities.

This region is also known for its cuisine, including dishes like hotdish and traditional Scandinavian specialties. Tourists can enjoy exploring attractions such as the Mall of America, the breathtaking North Shore of Lake Superior, and the picturesque Boundary Waters Canoe Area Wilderness, making it a great destination for outdoor enthusiasts. If you’re ready for more affordable vehicle protection, InsureOne’s experienced agents will help you find the best auto insurance at the best rates in Minnesota.

How Much Does Car Insurance Cost in Minnesota?

In the North Star State, the average yearly cost of full coverage auto insurance is around $1,760. This is a bit lower than the national average of $2,014 for full coverage. Additionally, the minimum coverage cost in Minnesota is $585 annually, which is also below the national average of $622.

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What Does Full Coverage vs Minimum Liability Mean?

Full coverage and minimum liability refer to different levels of auto insurance options.

Full coverage generally includes a combination of liability, collision, and comprehensive coverage. Liability coverage protects you financially if you cause an accident and damage someone else’s property or injure them. Collision coverage helps cover the cost of repairs or replacement for your own vehicle in the event of a collision, regardless of fault. Comprehensive coverage, on the other hand, protects against non-collision events like theft, vandalism, or natural disasters.

Minimum liability insurance is the minimum amount of coverage required by law. It typically includes only liability protection, protecting others in case you cause an accident, but not providing coverage for your own vehicle.

Affordable Car Insurance Rates Comparison by Cities in Minnesota

Car insurance premiums can vary in different cities due to various factors. Key factors that can contribute to higher premiums include population density, high crime rates, poor road conditions, and local regulations. Cities with higher population density tend to have more traffic and therefore a higher risk of accidents, which can increase premiums. Similarly, cities with high crime rates may experience vehicle theft and vandalism, impacting insurance costs.

Additionally, poor road conditions and specific regulations in each city can also affect car insurance prices. However, it’s important to remember that these are just some of the factors that can influence premiums, and data may vary depending on the insurance provider and individual circumstances.

Here is a comparison table of the average monthly premiums paid by drivers in different cities across the Minnesota:

City Full Coverage Insurance Liability Insurance Coverage
Minneapolis $140 $56
St. Paul $159 $64
Rochester $123 $42
Duluth $125 $37
Bloomington $130 $50
Plymouth $128 $49
Brooklyn Park $130 $50

We arrive at our average auto insurance costs by using a male driver, aged 30 with a clean driving record. Minimum liability is the state-required minimum. Full coverage is a 100K/300K/100K policy. Your costs will be different and based on your individual factors.

How Much Money Can Bundling Car and Home Insurance Save You in Minnesota

Bundling your car and home insurance in Minnesota can save you money on your annual premium. On average, homeowners can save around 10%, while renters can save approximately 5%. The actual discount can vary between 5% and 20% depending on the insurance provider. Bundling is a convenient and cost-effective option for reducing your annual premium.

InsureOne is committed to providing you with personalized insurance packages that align with your needs and budget. Our agents will take care of everything for you, ensuring that you receive a tailored plan that perfectly suits your circumstances.

What Types of Auto Discounts Are Available in Minnesota?

Insurers generally provide a variety of driving discounts, including the good driver discount. This discount can save you money for maintaining a clean driving record, with no traffic tickets for several years, or none. Other rate-reducing discounts include:

  • Multi-car
  • Anti-theft
  • Paperless billing
  • Low mileage
  • Good student
  • Loyalty
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Minnesota Car Insurance Laws

Minnesota has a 30/60/10 minimum mandatory liability coverage requirement, and drivers must carry proof of having it.

Having this minimum liability coverage is essential as it provides financial protection for both the policyholder and others involved in accidents. It ensures that injured parties receive compensation for their medical expenses and helps cover the costs of property damage caused by the policyholder. Moreover, it provides a level of financial security and peace of mind for the policyholder, as they are protected from potential legal and financial liabilities resulting from accidents.

However, it is important to note that the minimum liability coverage may not be enough in certain circumstances. It is advisable to evaluate your personal needs and consider additional coverage options. Consulting with an insurance professional can help you understand your options and choose the right coverage for your specific needs

Here’s a closer look at what mandatory car insurance means in this region.

What Are the Mandatory Car Insurance Requirements in Minnesota?

Mandatory monetary limits are cash amounts insurers must pay if a crash occurs, caused by their policyholder. In Minnesota, these limits are 30/60/10. That means if you cause a crash that is a covered event, your insurer must pay up to:

  • $30,000 for bodily injury per person
  • $60,000 for bodily injury per accident
  • $10,000 for property damage per accident

Furthermore, as a no-fault state, Minnesota drivers must have uninsured motorist coverage and personal injury protection as part of their insurance requirements:

  • $40,000 for Personal injury protection (PIP) per accident
  • $25,000 per person and $50,000 per accident for uninsured motorist coverage
  • $25,000 per person and $50,000 per accident for underinsured motorist coverage

    What Is the Penalty for Driving Without Insurance in Minnesota?

All drivers must possess valid proof of insurance while driving. Failure to provide proof of insurance can lead to misdemeanor charges and result in considerable penalties, including a fine of at least $200, possible revocation of license and registration, and a reinstatement fee of $30. Committing this offense three times within ten years can result in a gross misdemeanor charge and even more severe consequences, such as lengthier periods of license revocation and steeper fines.

Furthermore, if you cause an accident while uninsured, you may face jail time and additional monetary penalties, particularly if the accident results in serious injury or death. Therefore, it is crucial to ensure that you have adequate insurance coverage before hitting the road to avoid potential legal and financial repercussions.

What Factors Does Minnesota Law Allow in Determining Your Premiums?

State law allows insurance companies to calculate your premium based on several metrics. Some of the top deciding factors are:

  • Gender
  • Age
  • Marital status
  • Location
  • Vehicle type
  • Driving record and experience
  • Credit history
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Here’s What You Need to Know When Driving in Minnesot

Minnesota operates under a no-fault system. This means that your Personal Injury Protection (PIP) coverage will pay for your medical treatment and other damages after an accident up to your policy limits, regardless of fault.

If you have been in an accident in Minnesota and wish to sue the other driver, your legal options are limited. However, there are exceptions:

  • You can sue for economic loss if your medical bills are not fully covered by your PIP or health insurance, allowing you to seek reimbursement for any uncovered costs.
  • You can also sue for non-economic loss if your medical bills exceed $4,000, even if they are fully covered by insurance.

By understanding these key points, you can better protect yourself and navigate any incidents on the road in MN.

What Is Driving Like in Minnesota

Driving in Minnesota is characterized by a relatively high-quality road infrastructure maintained by the Minnesota Department of Transportation (MnDOT). The state agency manages well-maintained highways and roadways, making for smoother travels. However, it is essential to consider the impact of the state’s varying weather conditions on driving.

This region experiences harsh winters with heavy snowfall, which can create hazardous road conditions. Drivers need to be prepared for icy and snowy roads, reduced visibility, and the need for extra caution. Additionally, summer thunderstorms and occasional severe weather events can also affect driving conditions.

Being aware of the weather and adjusting driving habits accordingly is crucial for safe and enjoyable driving experiences in Minnesota.

How Many Car Accidents Happen in Minnesota?

In 2022, there were 418 fatal car crashes in the state and 444 people died as a result of those incidents. There were 111 drivers involved who had been drinking alcohol and 72 who had been taking illicit drugs. This chart shows the number of deadly accidents in different counties across Minnesota that same year.

County Fatal Crashes in 2022
Hennepin 60
Dakota 24
Ramsey 29
Stearns 10
Wright 10

Source: United States Department of Transportation

How Many Uninsured/Underinsured Motorists Are in Minnesota?

In 2019, 9.9% of motorists in this state were uninsured, placing it solidly between states with the lowest rates (New Jersey 3.1%) of uninsured drivers and states with the highest (Mississippi 29.4%). However, it is still important for drivers in the state to have auto insurance.

Even though the state requires drivers to carry minimum liability coverage, accidents can still occur where the minimum coverage may not be sufficient to cover the damages. This is especially true for accidents that result in severe injuries, extensive property damage, or involve multiple vehicles. Without additional coverage, drivers may be responsible for paying out-of-pocket for any costs that exceed their policy limits.

Moreover, car insurance can provide additional benefits beyond liability coverage. For example, comprehensive coverage can protect drivers from non-collision events such as theft, fire, or natural disasters. And collision coverage can help repair or replace a vehicle that is damaged in an accident, regardless of who is at fault.

Get the Best Car Insurance in Minnesota Today

At InsureOne, we pride ourselves on offering the best insurance with top-rated carriers you can trust to protect you and your family when on the roads. Plus, we do the work for you by researching a variety of options, so you get flexible coverage specific to your needs. InsureOne is the place to go for all your auto insurance needs. You can get a quick quote online right now, swing by one of our offices near you, or simply give us a ring at (800) 836-2240. We’ve got your back.