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Minnesota Car Insurance Rules and Regulations

The state of Minnesota legally requires auto insurance for all state drivers. Minnesota is a no fault state for car insurance, which means it requires certain areas of coverage including PIP or no fault insurance. Drivers in the state of Minnesota have to abide by these rules and regulations for car insurance or risk suffering the consequences. Getting a complete understanding of what is required can help any driver in the state to make sure they end up putting together a policy that meets state guidelines and offers them adequate protection in different claim situations.

Minnesota a No Fault State

Minnesota is a no fault state for auto insurance. This is simply a label for one area of car insurance coverage required by state law, and not a description of the way liability is dealt with in the state as some people believe. No fault insurance confuses many people due to its somewhat misleading name. Even drivers who have lived in no fault states for their entire lives sometimes get tripped up on the definition of no fault and what it means to them as drivers and insured auto owners. A quick rundown of no fault and its specific application to Minnesota is in order to help promote more complete understanding.

No fault car insurance principles do not in any way suggest that liability in an accident is unimportant. In fact, in no fault states like Minnesota drivers are required to carry liability insurance, suggesting that fault finding is still a process in use and important to the realm of personal insurance. No fault is just another name for the personal injury protection portion of your auto policy. In states like Minnesota, PIP is required for all drivers. PIP insurance provides for the medical expenses of you and your household in a covered accident regardless of fault. It does not include property coverage, nor does it replace liability insurance.

Liability Insurance Still Required

In PIP states, drivers still have to carry liability insurance. Minnesota liability policies are of the split for variety, meaning the limits of coverage and the deductibles are each divided up among the coverage types included in the policy. Split form liability includes single victim bodily injury, multiple victim bodily injury, and single accident property damage liability protection for the covered driver. It does not include any medical expense or property damage protection for the covered driver or vehicle. It is only intended to pay off liability expenses related to at fault accidents.

Underinsured and Uninsured Motorist Coverage

Also required under Minnesota auto insurance rules and regulations are underinsured and uninsured motorist protection. These are set aside as secondary areas of coverage, meaning they are only applied once other applicable limits are exhausted. Uninsured covers the cost of medical expenses to the insured driver and passengers when the liable driver in the other vehicle has not insurance. Underinsured protection similarly delivers coverage for that same group under circumstances where the other driver's liability limits are insufficient to handle all costs.

Personal injury protection or no fault insurance, liability, uninsured and underinsured motorist coverage are all required under Minnesota state car insurance law. Beyond these areas, any additional coverage is up to the driver, although one notable exception does exist. Even though collision and comprehensive insurance are not required by the state under its auto insurance rules for drivers, motorists still are compelled to carry both of these when they have an auto loan or a lease. Lien holder will compel this type of coverage, and will apply forced coverage at great expense to the driver that only includes comprehensive and collision if the driver does not get coverage on her own [1].

Drivers in Minnesota are best protected when they not only abide by state laws governing car insurance, but also go beyond the minimum requirements of the law and maximize the span and breadth of their policies to the greatest extent possible. Certain areas of coverage like comprehensive and collision tend to diminish in value once cars are paid off and depreciate significantly, but PIP, liability, uninsured and underinsured protection do not decrease in value as a car gets older. They are more about protecting a driver and passengers than they are about looking after the covered car. Making sure to keep these areas of coverage up to date and including the best protection you can afford is crucial if you want to protect yourself the best you can.

Minnesota is a no fault state, but that does not mean that fault is unimportant in car accidents. Auto insurance law here is designed to ensure that drivers get quick medical care when they are injured in accidents. Get to know Minnesota car insurance rules and regulations.

[1] http://www.state.mn.us/mn/externalDocs/Commerce/What_You_Need_to_Know_about_Auto_Insurance_013003105358_Auto Insurance3-00.pdf Retrieved 2010-03-14.

 

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