How To Buy Minnesota Car Inusrance

All insurance regulations and operations are overseen by the Department of Commerce in the state of Minnesota. Vehicle insurance is a must for every person who drives and/or owns a vehicle in the state. While the state prescribes certain minimum mandatory insurance requirements, you can choose additional insurance coverage, provided you can afford the increased costs.

In Minnesota, the mandatory coverage required includes:

• Liability insurance
• Personal Injury Protection
• Uninsured driver coverage
• Underinsured driver coverage

Additional options available to Minnesota residents include:

• Collision coverage
• Comprehensive coverage

In addition to the individual taking up insurance coverage, the policy also covers the spouse, children, relatives living at the same address as the main policy holder, minors under policy holder's or his/her relatives' custody and unrelated drivers using the primary holder's car with permission. Minnesota is among the states which recognize "no-fault" coverage - insurance claims are paid as per terms, irrespective of who was at fault for causing the accident or damage.

Minimum Coverage Requirements in Minnesota

Every vehicle registered or garaged in the state of Minnesota must be covered by the minimum coverage requirements listed below. You can always opt to insure your vehicle(s) for a higher amount if you wish to, but the insurance you buy cannot be for an amount lower than these limits.

Personal Injury Protection

• $40,000 per person for each accident
• $20,000 for medical/hospitalization expenses
• $20,000 as compensation for loss of wages, replacement, etc

Liability Protection

• $30,000 for one person injured
• $60,000 for 2 or more persons injured
• $10,000 for physical damage to another's vehicle or property

Uninsured Protection

• $25,000 for one person injured
• $50,000 for two or more persons insured

Underinsured Protection

• $25,000 for one person injured
• $50,000 for two or more persons insured

How No-Fault Coverage Works

In Minnesota, no-fault coverage is available and comes as a part of your PIP coverage. A popular misunderstanding is that no-fault coverage means that the insurance company will pay out all losses, irrespective of whose fault the accident is. In reality, the process works as below:

• Coverage is applicable only to expenses resulting from injuries if you are in an accident.
• It covers expenses incurred for medical treatment, expected loss of wages during the hospitalization/recuperation period, costs incurred towards home care or housekeeping services and a maximum payout of $2,000 in the case of death.
• Claims should be first made against your own PIP policy. If you've exhausted your PIP coverage, or if the expenses are greater than the available coverage, then you can file a claim against the other liable driver's liability coverage, if the accident was not your fault.
• All no-fault claims must be made within a period of 6 months along with proof of expenses incurred, a completed application form for benefits and if required, appear for a medical test conducted on the instructions of the insurance company.

Shopping for the best insurance package

It is important to remember that the cost of insurance (your insurance premiums) is decided on several criteria, such as your age and gender, additional coverage sought, prior driving/insurance history, mileage, type of vehicle, deductibles you ask for, discounts offered by the company, area of residence, applicable fees and surcharges, etc. It is important to provide the same details and particulars to each of the insurance companies or providers, so that you can get comparable quotes for your desired insurance package. Providing the same details allows you to do an apple-apple comparison, rather than an apple-orange comparison which could give you a wrong cost estimate.

Some helpful tips...

• Determine your insurance requirements before you begin to shop for deals.
• Know the amounts you can afford to pay as deductibles, since this decreases the cost of coverage.
• Be aware of the discounts offered in various categories.
• Check with as many agents as possible, both captive as well as independent and get quotes.
• Be aware of surcharges or any other hidden costs which can get added to your premium.

With the above information, you should now be in a position to secure the best-possible insurance coverage Minnesota.