What Minnesota requires you to carry

Minnesota law requires every driver to carry liability insurance — the kind that pays for damage or injury you cause to someone else. You must have at least $30,000 in bodily injury coverage per person, $60,000 total per accident, and $25,000 in property damage coverage. These are the state minimums, and they are the floor, not a recommendation.

You also need uninsured motorist coverage at the same limits. This protects you if someone without insurance hits you. Minnesota calls this "UM" coverage, and it is mandatory on every policy unless you sign a form refusing it — which most people should not do, because it costs very little and covers a real gap.

The state does not require collision or comprehensive coverage (the kinds that pay for damage to your own car), but your lender will. If you have a loan or lease, your contract requires you to carry both. If you own the car outright, you can choose to skip them, though that leaves you paying out of pocket for accidents, theft, or weather damage.

Key Takeaways

  • Minnesota requires $30,000/$60,000 bodily injury and $25,000 property damage liability coverage on every vehicle you drive.
  • Uninsured motorist coverage at the same limits is mandatory unless you actively refuse it in writing.
  • If you finance or lease your car, your lender requires collision and comprehensive coverage; if you own it outright, those are optional.
  • Your insurer must offer you the option to refuse uninsured motorist coverage, but doing so leaves you unprotected against uninsured drivers.
  • Rates vary by insurer, driving history, age, location within Minnesota, and the car itself — shopping around can save hundreds per year.

How rates are set in Minnesota

Insurance companies in Minnesota use several factors to calculate your premium. Your driving record is the heaviest weight — accidents and violations stay on your record for three to five years and raise your rate significantly. A single at-fault accident can increase your premium by 20 to 40 percent, depending on the insurer and the severity.

Your age matters too. Drivers under 25 and drivers over 75 pay more because statistics show they have more accidents. If you are a young driver, getting a good student discount (usually 3 to 5 percent off) requires maintaining a B average or higher in school.

Where you live in Minnesota affects your rate. Urban areas like Minneapolis and St. Paul have higher rates than rural areas because there are more accidents and more theft. Your zip code is one of the first things an insurer looks at. The car itself also matters — a sports car or a car with a high theft rate costs more to insure than a sedan or a truck.

Insurers also consider how far you drive to work, whether you use the car for business, and how many miles you drive per year. If you work from home or drive very little, you may find discounts for low mileage.

Shopping for insurance and comparing quotes

Minnesota does not have a state-run insurance pool or a single place to get quotes from all insurers at once. You have to contact companies individually or use comparison websites that gather quotes from multiple carriers. Major insurers writing policies in Minnesota include State Farm, Progressive, Allstate, GEICO, American Family, and many regional companies.

When you get a quote, the insurer will ask for your driver's license number, vehicle identification number (VIN), and driving history. They will pull your record from the Minnesota Department of Public Safety. Be honest about accidents and violations — insurers verify everything, and lying on an process can void your coverage later.

Compare the same coverage limits across quotes so you are looking at the same thing. A quote for $30,000/$60,000/$25,000 from one company is not the same price as the same limits from another. Ask about discounts: bundling home and auto insurance, paying in full instead of monthly, maintaining continuous coverage, and safety features on your car can all lower your rate.

What happens if you drive without insurance

Driving without insurance in Minnesota is a misdemeanor. If you are stopped by police and cannot show proof of coverage, you face a fine of $100 to $500 for a first offense. Your vehicle registration can be suspended, and you will have to pay a reinstatement fee to get it back.

If you cause an accident while uninsured, you are personally liable for all damages. The other person can sue you for medical bills, lost wages, vehicle repair, and pain and suffering. A judgment against you can follow you for years and result in wage garnishment or bank account levies. Uninsured drivers also cannot recover anything for their own injuries or vehicle damage, even if the accident was not their fault.

If you cannot afford insurance, some Minnesota insurers offer low-income programs or payment plans that break the premium into smaller monthly payments. The Minnesota Department of Commerce can direct you to companies that serve high-risk drivers.

Coverage types beyond the state minimum

Collision coverage pays to repair or replace your car if you hit something or roll over — regardless of who is at fault. You choose a deductible (usually $250, $500, or $1,000), and you pay that amount out of pocket when you file a claim. The insurer pays the rest, up to the car's actual cash value.

Comprehensive coverage pays for damage from things you did not cause: theft, vandalism, weather, hitting an animal, or glass breakage. It also has a deductible. If your car is newer or you have a loan, your lender requires both collision and comprehensive. If your car is very old, the cost of these coverages may exceed what the car is worth, and you might choose to drop them.

Medical payments coverage (also called "med pay") pays for medical treatment for you and your passengers after an accident, regardless of fault. It is optional but inexpensive and useful if your health insurance has a high deductible. Uninsured and underinsured motorist coverage protects you if hit by someone without insurance or without enough insurance to cover your damages. Minnesota requires uninsured motorist coverage unless you refuse it in writing.

How to file a claim in Minnesota

If you are in an accident, call your insurance company as soon as safely possible. Have your policy number ready and be prepared to describe what happened, where, and when. The insurer will assign a claims adjuster who will contact you to schedule an inspection of your vehicle.

Gather information at the scene if it is safe to do so: the other driver's name, phone number, address, driver's license number, vehicle information, and insurance details. Take photos of the damage, the accident scene, and the other vehicle. Get the names and contact information of any witnesses. If police responded, get the report number.

Send your insurer copies of the police report, photos, and any medical records if you were injured. Do not admit fault or sign anything the other driver asks you to sign. Your insurer will handle communication with the other party's insurance company. The claims process typically takes two to four weeks, depending on the complexity of the accident.

Discounts and ways to lower your premium

Most Minnesota insurers offer discounts for bundling auto and home insurance — often 10 to 25 percent off your auto premium. Paying your premium in full instead of monthly can save 5 to 10 percent. Maintaining continuous coverage (not letting your policy lapse) qualifies you for loyalty discounts with some companies.

Safety features on your car — anti-theft devices, automatic seatbelts, airbags, or newer safety technology — can lower your rate. Taking a defensive driving course approved by the Minnesota Department of Public Safety can reduce your premium by 10 percent and also removes points from your driving record if you have a violation.

Some insurers offer usage-based programs where they monitor your driving through an app or device. If you drive safely, you can earn discounts of 10 to 30 percent. Ask your insurer what programs they offer and whether they are worth the privacy trade-off for your situation.

Frequently Asked Questions

What should I do if I get pulled over and do not have my insurance card?

Tell the officer your policy number and the name of your insurance company. Ask if you can look up your policy on your phone or provide it later. In Minnesota, you can show proof of insurance electronically. If you truly have no insurance, you will receive a citation, but being cooperative and honest is your best approach.

Does my insurance follow me if I lend my car to a friend?

Yes, your insurance covers the car, not the driver. If a friend borrows your car and causes an accident, your insurance pays first. Your friend's insurance is secondary. This is why you should be careful about who you lend your car to — an accident will raise your rate, even if someone else was driving.

How long do accidents stay on my driving record in Minnesota?

Accidents typically stay on your record for three to five years, depending on the insurer. After that time, they have less impact on your rate. Violations like speeding or reckless driving also stay for three to five years. You can request a copy of your driving record from the Minnesota Department of Public Safety to see what insurers see.

Can I get insurance if I have had multiple accidents or violations?

Yes, but you will pay more. Insurers that specialize in high-risk drivers will write policies for people with poor driving records. You may also find that some standard insurers will not renew you after an accident, but you can shop around. The Minnesota Department of Commerce maintains a list of insurers that serve drivers with violations and accidents.

What is the difference between actual cash value and agreed value for an older car?

Actual cash value is what your car is worth on the market right now, minus depreciation. Agreed value is a set amount you and the insurer agree on before a loss. Agreed value is usually only available for classic or collectible cars. For regular used cars, insurers use actual cash value, which means an older car may not be worth repairing after an accident.