Expensive car premiums hit everyone hard and weigh you down if you’re on a budget. Most people opt for the least amount of insurance possible as a quick fix to get by.
This is what the Minnesota Department of Commerce calls “minimum car insurance coverage in Minnesota”. But if you carry no car insurance or a policy with less protection, they can fine you or even impound your vehicle.
You deserve the cheapest car insurance so you can take care of your family and protect what matters most.
We want to tell you more about Minnesota car insurance minimums limits to avoid legal consequences and stressing over finances in a crash.
Required Minnesota Auto Insurance Coverage
Minimum car insurance coverage is especially handy in the state’s harsh winters. Icy, snowy terrain makes it dangerous to drive on roads, even after a good salting.
When you abide by the state’s auto insurance requirements, you and your family don’t have to worry about accidents. The carrier pays for injuries, vehicle damages, and more, letting you relax.
Plus, minimum car insurance coverage in Minnesota pays the other driver’s economic losses if you caused the accident.
You’ll need bodily liability coverage, uninsured and underinsured motorist coverage, and other types of car insurance too.
| Type of Coverage | Definition | Amount |
| Bodily Injury Liability | Covers the other driver’s injuries | $30,000 per individual & $60,000 per accident |
| Property Damage Liability | Covers the other driver’s vehicle damages | $10,000 |
| Personal Injury Protection | Covers you and your household for lost income, replacement services, etc. | $40,000 |
| Uninsured Motorist Coverage | Covers the at-fault driver’s expenses if they don’t have insurance | $25,000 per individual & $50,000 per accident |
| Underinsured Motorist Coverage | Covers the at-fault driver’s expenses if they don’t have enough insurance | $25,000 per individual & $50,000 per accident |
No-Fault Coverage for Minnesota Car Insurance
If you’ve lived in Minnesota for a while or moved here for the first time, you may have heard the term “no-fault coverage.” This type of coverage is also called personal injury protection (PIP), which the state requires at least $40,000.
No-fault coverage is useful no matter who is at fault for the accident. Under this protection, your carrier covers crash costs, so you don’t have to pay out of pocket.
It acts similarly to liability insurance since it can pay for someone’s damages if you were involved in an accident and at fault.
- Medical expenses
- Loss of income
- Housekeeping
- Funeral expenses (up to $2,000)
We recommend speaking with an agent or broker to make a claim against the other driver if your PIP coverage isn’t enough. If they caused the crash, they could cover unwanted bills and expenses you didn’t see coming.
Minnesota Consequences for Driving without Insurance
You’ll incur minor to severe legal trouble by refusing to purchase the minimum car coverage. Minnesota takes insurance protection seriously and has a responsibility to keep all drivers safe by checking proof of insurance from every resident.
Take heed of the driving consequences before turning the key and hopping on the interstate. The following loss of benefits varies by state and may not be the same as where you moved from.
| Consequence | Legal Application |
| Fines | You could rack up thousands in unnecessary state bills. |
| Suspended license | The Minnesota Department of Commerce can take away driving privileges via your license. |
| Impounded vehicle | Towing your car against your will, Minnesota won’t return it until you prove minimum car coverage. |
| Out-of-Pocket Accident Costs | If you land in a car crash, you’ll have to pay the price, whether in damages or legal fees. |
| Car Premium Increase | Minnesota labels you as a “high-risk driver”, making it more difficult to get a cheaper monthly payment. |
FAQ on Minimum Car Insurance Coverage
How can I get the cheapest minimum coverage car insurance?
Budget can be an issue for you if you have teenagers, gaps in insurance, or other factors that cause higher premiums.
We recommend speaking to an experienced insurance broker. They can show you dozens of car quotes at once, saving the time of researching individual carriers.
If I have a car loan, what is the minimum coverage for the vehicle?
Most lenders require comprehensive or collision coverage to protect the money they let you borrow.
Although these protections are above what the Minnesota Department of Commerce deems “minimum coverage”, you’ll need it anyways.
Be careful since mortgage companies purchase “forced insurance” if you don’t comply. This is more expensive legal car insurance that drains your account more than if you got comprehensive or collision coverage.
Protect Your Family and Vehicle with Minimum Car Coverage
At the end of the day, minimum car insurance coverage protects what matters most: you and your family. The Minnesota state government wants you to enjoy driving through its snowy scenery without fearing an accident.
Our local brokers consider your budget when looking for your family’s lifelong vehicle coverage. We’re a brokerage in Waite Park and Elk River with over 40 of America’s most reliable car insurance carriers.
To save time and money on minimum car coverage, call us today at (888)-232-2583.