If you possess a licensed vehicle in Minnesota, you are required to have auto insurance. However, every good policy should include the minimum amounts of coverage for specific types of car insurance required by Minnesota law. These policies will include coverage for the individuals in your car and for the individuals in the other car involved in the accident.
Personal Injury Protection
Since Minnesota is a no-fault insurance state, you are required to have coverage that will pay for your and your passengers' immediate expenses after an accident, regardless of which driver was at fault. You must carry at least the minimum coverage of $40,000, which includes:
- $20,000 for medical expenses
- $20,000 for lost wages
This policy provides coverage for expenses and liability when a vehicle accident is a result of your negligence. It covers the occupants of the vehicle you hit. The minimum coverage requires:
- $30,000 for bodily injuries for each individual
- If multiple people are injured, then $60,000 for each accident for bodily injuries
- $10,000 for each accident for property damage
Uninsured Or Underinsured Motorist Insurance
If you are in a vehicle accident and the driver of the other car is at fault and has inadequate or no insurance coverage, this policy can be applied to your costs up to the limits of your coverage for you and your passengers. The Minnesota minimum coverage requires:
- $50,000 for each accident
- $25,000 for each individual
Often the auto insurance an individual has will provide more coverage for the other people injured in an accident than it will for the individual in his or her own car. You may decide to get more than the minimum coverage required by state law, especially when you consider these additional factors:
- Your Assets. If you have substantial personal assets, you want to have enough liability coverage to protect them. You should make sure that your coverage is equal to or more than the total value of your assets or financial net worth.
- Your Driving Habits. If you have a tendency to speed, a history of vehicle accidents or routinely drive on high-risk roads, such as winding roads, during a lengthy commute, you may want to obtain more complete coverage. This can entail adding a collision policy for striking inanimate objects or a comprehensive coverage policy for damages that result from something other than an accident, such as hail.
- The Problem With Umbrella Policies. Despite its name, an umbrella policy does not cover all of your insurance needs. Instead, it allows you to protect your personal assets and provides additional coverage for costs that exceed the limits on your auto insurance so that you do not have to pay the remaining balance yourself.
What qualifies as good car insurance will depend on each policyholder's unique circumstances. You should closely examine your financial situation and ensure that your auto insurance provides the correct amount of coverage for any vehicle accident situation that may arise.