Minnesotans are on the road an average of 120 million miles each year. Yet, over 11 percent of the drivers on those roads are behind the wheel with no insurance, according to the Insurance Research Council. With that in mind, l what insurance you need to drive and protect yourself in the Land of 10,000 Lakes.
Minnesota Vehicle Insurance Requirements
It is against the law to operate a vehicle on Minnesota roads without insurance or other proof of financial responsibility. Most states require liability insurance, but Minnesota requires you to carry triple coverage: liability insurance, personal injury protection, and uninsured motorist insurance.
Who Needs Vehicle Insurance in Minnesota?
All vehicle owners, except the handful who choose to post a substantial bond (See Alternatives to Insurance, below). State law requires drivers to carry insurance at all times, including coverage for vehicles that owners are "contemplating" using.
Proof of Insurance
State law requires drivers to show an insurance card or other proof of coverage when:
- Registering a vehicle
- Taking a driving test
- Renewing a vehicle registration
- Requested by a law enforcement officer during a traffic stop or after an accident
The state legally allows drivers to carry proof of insurance electronically on a mobile device. Whether you carry it on your phone or in your wallet, your proof of insurance should include coverage, the insurance company's name, the expiration date of the policy, and a list of insured vehicles.
Minimum Insurance Requirements in Minnesota
Minnesota has more basic insurance requirements than many other states. The types and minimum amounts of vehicle insurance you need to buy are:
Personal Injury Protection (PIP), also known as "no-fault" insurance
- $40,000 per person, per accident
- $20,000 for medical expenses for any one person
- $20,000 for income loss, funeral expenses, and other non-medical costs
- $30,000 for injuries to one person in an accident
- $60,000 for injuries to two or more individuals in an accident
- $10,000 for property damage
Uninsured Motorist Coverage
- $25,000 for injuries to one person in an accident
- $50,000 for injuries to two or more people in an accident
Underinsured Motorist Coverage
- $25,000 for injuries to one person in an accident
- $50,000 for injuries to two or more people in an accident
It's important to note that PIP coverage does not apply to motorcycles, so motorcyclists must purchase a separate policy.
Is this package enough to cover the costs of a catastrophic accident? See: "How Much Car Insurance Coverage Do I Need?" below.
High-risk auto insurance program
The Minnesota Automobile Insurance Plan offers high-risk insurance plans to people who have a bad driving record and can't get coverage. To be eligible, applicants must demonstrate they have attempted to obtain automobile insurance within the past 60 days and were denied coverage.
Alternatives to insurance in Minnesota
Residents have alternatives to purchasing automobile insurance in Minnesota as long as they can provide "proof of financial responsibility." In other words, the driver must prove he or she has enough savings or equity to meet the minimum liability requirements set by the state (via surety bond or cash deposit).
If the costs of a catastrophic accident exceed your bond or deposit, of course, you'll still be liable for the costs.
What Happens If You Don't Have Car Insurance in Minnesota?
If you allow your insurance to lapse or are found driving without insurance, you face stiff penalties and fines. You can be fined up to $1,000 for a first offense. You may also have your license revoked and vehicle registration suspended. In some cases, you could serve up to 90 days in jail. If you are unable to pay the fine, the state law does allow you to complete community service instead.
How Much Vehicle Insurance Do You Need?
Minnesota requires more insurance than most other states. However, the minimum coverage still isn't likely to cover all of the costs of an accident. The required no-fault coverage (PIP) only applies to the expenses from an injury in an accident (e.g. medical costs, wage loss, and funeral expenses); it won't cover vehicle repair or replacement.
Minnesota Lack Vehicle Insurance? 11.5% National Average: 13 % (Source: Insurance Research Council - latest data, 2015)
You may want to consider a more robust insurance policy that will offer better protection. Most consumer and insurance industry groups recommend you have at least $100,000 per injury and $300,000 per accident, according to the Insurance Information Institute.
For more on the different types of insurance coverage and possible discounts you may qualify for, see MoneyGeek guide to car insurance on the topic.
Teen Drivers in Minnesota
Minnesota has a graduated driver's license system designed to slowly introduce teenage drivers to the behind-the-wheel experience. The steps include a learning permit, a provisional license, and a full license. Young drivers with an instructional permit may be added to their parent's insurance policy and—in most cases—insurance companies will not charge for someone with a learner's permit. When moving into a provisional and full license, teenage drivers must have auto insurance in order to drive unaccompanied. Typically, it is cheaper to add a teenage driver to a family policy than to purchase a new policy.
Minnesota Car Insurance: The Difference a Teen Makes
Median annual price change for families with a teen driver on their policy:$1,493 increase This is a difference of 100%.
Average annual premium increase if your teen gets a speeding ticket while driving 11-15 mph over the speed limit:
Discounts for Teens in Minnesota
Impact on annual premium with Good Student and Defensive Driving discounts:$428 saved
Compare Premiums from Minnesota Providers
Auto policy costs are different from insurer to insurer, so do some comparison shopping. Check out the annual average premiums for a married couple with a 16-year-old teen driver in Minnesota:
Minnesota Premiums: Mustang vs. Minivan
Insurers view sports cars as a more risky choice for teens than sedans and minivans. If your teen wants a sports car, consider the long-term costs.
Average premium for two 2014
Average premium for two 2008
Town and Country Limiteds
Annual benefit of minivans:
College Students in Minnesota
New residents in Minnesota have 60 days to register their vehicles. If you are an out-of-state student attending college in Minnesota, register your vehicle with Driver and Vehicle Services. In addition, call your insurance agent to make sure your auto coverage meets Minnesota's minimum insurance requirements.
If you're a Minnesota resident planning to head to school in another state and leave your car at home, alert your insurance agent. You have to keep your current registration and auto insurance policy in Minnesota. If you are living in the state but moving out of your parent's house, you also need to notify your insurance company of your address change.
Do College Students Have Lower Premiums in MN?
Median annual premium change with a college student vs. high school driver$673 decrease This is a decrease of 20%.
How Annual Premiums Compare for Minnesota Insurers
Each year, scrutinize your policy before it renews to see whether you could get a better deal elsewhere. Here are the average premiums for a married couple with a 19-year-old college student in Minnesota.
Minnesota College Students: Distance Discount
You may see a slight break in your family's premium if your student lives 150+ miles away from home.
Average premium for a 19-year-old male
- $3,628 at home
- $3,154 at school
- $474 in savings
Average premium for a 19-year-old female
- $3,026 at home
- $2,718 at school
- $308 in savings
College Students in Minnesota: Mustangs vs. Minivans
For a college student, driving a minivan rather than a sports car will help keep auto premiums on the lower side.
2014 Mustang GTs (2)$4,093
2008 Town and Country Limited minivans (2)$2,591
Annual benefit of minivans
Military Drivers in Minnesota
Military discounts on auto insurance are available for active-duty members of the armed forces and veterans in the North Star State, with about 600 active-duty members and well over 300,000 veterans. Major insurance carriers offer them, as well as specialized companies that work only with military members and vets. To find the best rate, consider your net worth and the value of your car, compare it with the mandated minimum insurance for Minnesota and get several quotes from insurance companies.
Once your auto insurance is squared away, as a military member you won't need to register your insured vehicle while stationed in Minnesota so long as it is properly registered in your home state. Minnesota residents on active duty out-of-state are exempt from registration tax for up to one year after discharge. You must be the owner or co-owner, and the vehicle must be registered in Minnesota throughout your service.
Minnesota Service Members:
How the Vehicle You Choose Affects Your Premium
Rollover crashes are more common among SUVs and pickups, according to the Insurance Information Institute, but an older model SUV is still less likely to affect your premium than a recent model sports car.
Military Drivers: A Comparison of Premium Ranges by Driver Age and Vehicle
Age-Based Savings for Minnesota
Median auto insurance
for service members:
Compare Average Premiums Available to Minnesota Military Personnel
When you're looking for the best auto insurance policy, it pays to do some comparison shopping. Check out the average annual rates you can get in Minnesota.
Seniors in Minnesota
If you are 55 years old or older, you can qualify for a state-mandated discount on your auto insurance by completing a state-approved defensive driving course. The discount can trim 10 percent off your premiums for three years. You can complete this course either in the classroom or online.
Undocumented Workers in Minnesota
According to the National Conference of State Legislatures, undocumented immigrants in Minnesota may not currently receive a driver's license - a prerequisite to car insurance.
Ridesharing Insurance in Minnesota: Are You Covered?
Under state law, drivers must carry appropriate levels of coverage when the driver is logged into the network—whether or not giving a ride. This coverage may be provided by either the driver, the TNC, or a combination of both:
- $50,000 for injury or death for one person
- $100,000 for injury or death to two or more persons per accident
- $30,000 for property damage per accident
If you're a ridesharing driver, check with your insurance agent to see what you need to do to be fully covered.
Unlike most states, which set the limit at $1 million, Minnesota's state regulations on rideshare insurance requirements require $1.5 million of liability coverage when engaged with a passenger.
Car Accidents: How to File a Claim
If involved in an accident, Minnesota law requires you to stop at the crash site. Contact law enforcement and provide assistance to anyone, if needed. After the accident, take the following steps:
- Exchange names, addresses, vehicle license plates and driver's license information with the driver(s) involved in the crash
- Collect the names, addresses and license plate numbers of witnesses
- Provide evidence of vehicle insurance to investigating law enforcement officer (if asked)
- File an accident report with Driver and Vehicle Services if the accident resulted in injury or death, or if it caused more than $1,000 in damage
- Call your insurance agent or claims processing number for your insurance company
- Follow your insurance company's claims process, which may include getting an estimate for vehicle repair
- Call the other driver's insurance company to file a claim against that driver
Driver Safety: How Does Minnesota Rank?
Minnesota is among the 10 safest states to drive in terms of fatal crashes, according to federal data (see chart below). The state also has the second lowest rate of crashes in the country involving drunk driving, but since approximately a third of all fatal crashes in Minnesota involve alcohol, it is working hard to reduce that and other problems still further.
"In 2003 we noticed that with traffic fatalities, the trend line was going up," says Donna Berger, director of the Minnesota Office of Traffic Safety. "We knew we couldn't be doing the same thing, so we worked with the departments of health and transportation to form our Toward Zero Deaths program. We have engineers talking to law enforcement talking to traffic safety stakeholders and EMS. And through 2014 we had a 40 percent decrease in traffic fatalities."
Below is the overall ranking of Minnesota in terms of driver safety.
Minnesota Driver Safety Ranking
The driver safety table shows the different safety factors that contribute to your state's overall safety rank (in the green box). The overall safety ranking and the National Ranking column scores in each category (including crash fatality rates) are from safest to most dangerous, with 1st being the safest and 51st the least safe.
How did we create the safety rankings?
We created a traffic safety ranking of all US states plus the District of Columbia by combining data from the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety. We looked at fatality rates by distance traveled as well as by population and gave more weight to behaviors that were riskier and preventable (i.e., drunk driving, not using a seat belt), as well as to accidents that involved more than one party (i.e., multi-vehicle).
|Driver Safety Profile||Number of Fatalities||Fatality Rate
The fatality rate is the rate per one billion vehicle miles traveled, except for pedestrian and bicyclist fatality measures, which are per measured per a population of 100,000.
Rankings are in order of safest to least safe. A state with the lowest fatality rate would be the safest, and thus ranked #1.
|Drunk Driving-Related Fatalities||97||1.70||2nd|
|Passenger Vehicle Unrestrained Fatalities||80||1.40||2nd|
|Unhelmeted Motorcycle Fatalities||34||0.60||25th|
|Multiple Vehicle Fatalities||202||3.55||12th|
|Total Vehicle Fatalities||387||6.79||3rd|
Sources: National Highway Traffic Safety Administration, Insurance Institute for Highway Safety
Minnesota: Protecting You from Injury on the Road
Minnesota adapts solutions to specific regional problems, rather than imposing a one-size-fits-all program on every locality. Not surprisingly, it has driven its Toward Zero Deaths program down to the local level with countywide grants.
"The thing is, regions in our state differ quite a bit in terms of problem areas," says Berger. "Some areas see low drunk driving and high seatbelt use, and it's just the opposite in other areas. Some counties might have more of a problem with speeding than others. So we tailor programs to solve the problems at the local level. We have high visibility enforcement, and we really publicize it as a deterrent. We want to change behavior and prevent accidents.
"Overall, it's about changing the driver culture," Berger continues. "Maybe 40 years ago, drunk driving didn't get as much attention as it does today. Drunk driving is bad, and we want people also to feel that way about texting, aggressive driving - anything they might do that puts themselves and other people on the road at risk."
Safe Driving Laws - Minnesota
|Mandatory seat belts||All drivers and passengers must use appropriate seat belts and child safety restraints. Seat belt tickets and fees range from $25 to $100.|
|Child passenger safety||Children under 8 must ride in a federally approved car seat; children age 8 or older or 4'9" or taller may use traditional seat and lap belts.|
|Driving under the influence (DUI)||The legal alcohol concentration driving limit is 0.08 (but motorists can still be arrested at lower BAC levels). Fines can range from $1,000 for a first offense to more than $14,000 for a 4th offense. Depending on the number of convictions and other factors, drivers may lose their license for 90 days to four years and may be required to serve 90 days to seven years in jail.|
|Ignition interlock after DUI||Partial||First time DUI offenders arrested at or above 0.16 alcohol concentration and second-time offenders must use an ignition interlock device or lose driving privileges for one to two years; drivers with three offenses or more within a 10-year period will face suspensions and multi-year ignition interlock requirements.|
|Talking on cell or texting while driving||Texting and using hand-held devices is prohibited for all ages; provisional drivers under 18 are banned from all cell phone activities.|
|Protections for young drivers||Drivers may not drive between the hours of midnight and 5 a.m. until age 16.5 and have passenger restrictions until age 17.|
|Motorcycle helmet law||Partial||< 18 drivers must wear a state-approved helmet|
|Bicycle helmet law||No statewide bicycle helmet regulations|
Car Insurance Resources for Minnesota Residents
The Minnesota Automobile Insurance Plan is a state-mandated plan that provides insurance coverage to drivers who are denied auto insurance through traditional channels.
The Minnesota Driver and Vehicle Services handle the car registration and driver licensing processes in the state.
The Minnesota Department of Commerce publishes an informative brochure, "What You Need to Know" about auto insurance in the state of Minnesota.
Safe Roads MN is an advocacy organization promoting licensing and insurance for undocumented immigrants in Minnesota.