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What are state minimums for car insurance in Minnesota?

Things to remember...

  • Minnesota requires its drivers to have personal injury insurance, liability insurance, and uninsured motorist insurance
  • Some auto lenders have additional auto insurance requirements that drivers must meet
  • Minnesota has very serious penalties for non-compliance with the state’s auto insurance requirements
  • Law enforcement officials in this state often learn about a driver’s non-compliance with auto insurance laws when the driver is pulled over for a moving violation

In many states, drivers are financially responsible for any expenses or damages they create while behind the wheel, and this holds true in Minnesota as well.

Many drivers do not have the financial means to pay for the expenses associated with a car accident, so Minnesota requires its drivers to obtain auto insurance coverage in an effort to pay for some accident-related expenses. What are state minimums for car insurance in Minnesota? We’ll look at that first.

When you learn more about Minnesota auto insurance minimum coverage requirements as well as the penalties for not being properly insured, you may be ready to start shopping around and comparing rates for a new Minnesota auto insurance plan.

And while being uninsured in an accident can be expensive, you should be aware that Minnesota has hefty penalties for uninsured drivers as well. Make sure you are getting the best rate with our free quote tool above!

Table of Contents

Minimum Auto Insurance Coverage in Minnesota

What is the state minimum auto insurance for MN? You may be wondering how much auto insurance Minnesota requires its drivers to have.

Minnesota auto insurance statutes from the MN Driver and Vehicle Services require a minimum amount of insurance that you need to drive legally, as you can see here for the state:

  • Personal injury protection that includes $20,000 for medical coverage and $20,000 for loss of income
  • $10,000 for property damage liability per accident
  • $30,000 per person and $60,000 per accident for bodily injury liability
  • $25,000 per person and $50,000 per accident for uninsured motorist coverage

These state insurance requirements pertain to most drivers who drive a car for personal use, but there are special situations when unique coverage requirements prevail.

For example, if your car is used for commercial or business purposes in this state, you may need to comply with other auto insurance requirements.

What is the average cost of auto insurance in Minnesota?

How much will Minnesota car insurance set you back? The table below shows the average rates for auto insurance in MN for the major insurers.

Average Annual Auto Insurance Rates by Company in Minnesota
CompanesAverage Annual Auto Insurance Rates
State Farm M$2,066.99
AMCO Insurance$2,926.49
Illinois Farmers Ins$3,137.45
American Family Mutual$3,521.29
Allstate $4,532.01
Liberty Mutual$13,563.61

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Who has the cheapest car insurance in Minnesota? For these major insurers, your rates will likely be cheapest with State Farm, USAA, and AMCO. But there are so many factors that go into auto insurance rates that the only way to know for sure is to shop around.

And these are certainly not the only insurers in Minnesota. Other major insruers like Progressive, Nationwide, and Travelers also have a presence in the state.

Driving While Uninsured in Minnesota

The penalties for breaking the insurance law in Minnesota are significant. If you are caught driving without the standard or basic amount of auto insurance required in this state, you face penalties that include:

  • Imprisonment
  • A $200 fine
  • The suspension of your car registration
  • The suspension of your driver’s license

Keep in mind that you may face additional penalties if you commit insurance fraud. The best idea is to obtain the proper coverage and complies with the state’s insurance requirements at all times.

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Minimum Required Auto Insurance vs. Recommended Coverage

What coverage do I really need for auto insurance?

With such significant penalties associated with not having the proper amount of auto insurance in Minnesota, you understandably may be eager to start shopping for new coverage today.

Keep in mind that some drivers will purchase the minimum amount of coverage required by their auto lender and by the state in order to keep their premium amount as low as possible.

However, because any expenses that are not paid for by your insurance benefits are still your responsibility, some drivers choose to buy more than the minimum amount of auto insurance required in this state.

Shopping Around for Auto Insurance

Most Minnesota drivers will benefit from shopping around for new auto insurance rates every six months.

It can seem time-consuming to compare at least three to four quotes for insurance so frequently, but you can save time and energy with this endeavor by requesting online quotes from a few providers.

Remember that you need to focus your attention on finding highly reputable and established insurance companies as a first step, and you also need to decide which coverage types and amounts to buy before you request quotes.

While nobody wants to pay more than necessary for auto insurance in Minnesota, you also may not want to deal with the consequences of being underinsured.

How to Read Auto Insurance Requirements

Understanding Minnesota’s auto insurance requirements is a necessary first step to take to ensure that you are properly insured per state law. You will find that there are both optional and required coverages available to choose from.

Ensure that all of the state’s requirements met before you add optional coverage to your policy.

Remember that optional coverage can increase your premium, but it could potentially decrease your out-of-pocket expenses if you need to file a claim.

  • Bodily Injury Liability – One of the required auto insurance types that Minnesota drivers need is bodily injury liability. This type of auto insurance covers the medical and health expenses for other parties if you cause injuries to other people in an accident.
  • Personal Injury Protection (PIP) / Medical Payments – While bodily injury liability pays for other parties’ medical expenses, PIP pays for medical expenses caused by the accident for everyone in your vehicle. This is required coverage for Minnesota drivers, and it may be used in conjunction with your health insurance policy.
  • Property Damage Liability – You are also responsible for a replacement or repair work on a vehicle belonging to someone else that is damaged in an accident you cause. Property damage liability pays for other parties’ damaged property, and this coverage type is required by law in Minnesota.
  • Collision – Some lenders require drivers to have collision or comprehensive insurance. These are coverage types that pay for your own vehicle’s repair costs and other related expenses. With collision coverage, only vehicle damage sustained in a collision is covered.
  • Comprehensive – With comprehensive insurance, the damage that is caused by a collision, a bad weather event, a flood, a fire, theft, and many other factors is covered.
  • Uninsured and Underinsured Motorist Coverage – Driving without insurance is illegal in the state. Minnesota requires its drivers to have uninsured or underinsured motorist insurance. This insurance type provides compensation for your vehicle repairs, medical bills, and more if you are involved in an accident with a hit and run driver or an uninsured driver.

This video from Allstate touches on Uninsured Motorist Coverage and why you need it.

When you are shopping for new insurance in Minnesota, you need to pay attention to the coverage types as well as the limits for each coverage type that you purchase.

The coverage type indicates the expenses that will be paid for through the policy, and the limit for each coverage types places a maximum dollar amount on the benefits that you may receive.

Frequently Asked Questions

We’ve added a few more FAQs below.

#1. What is the MN car insurance grace period?

If you purchase a new vehicle in Minnesota, the grace period for getting full coverage auto insurance varies but typically is between two to 30 days. After that grace period is over, you should have auto insurance on the vehicle or you shouldn’t be driving it until you do.

Most lenders also require that you keep full coverage on your car for the duration of the loan. If you don’t get full coverage, your lende may opt purcahse force-placed coverage on your vehicle.

The Consumer Financial Protection Bureau notes that this is usually much more expensive than traditional auto insurance coverage, and this price may be tacked onto the price of your loan and doesn’t even cover you but only covers the lenders interest.

#2. Does auto insurance follow the car or the driver in Minnesota

So, does insurance follow the car or the driver in Minnesota?

This depends on the type of auto insurance coverage. Typically, insurance coverage like liability, comprehensive, and collision follow the vehicle. But your PIP coverage will generally travel with you.

Comparing rates periodically will help you to keep this expense as low as possible while also keeping your coverage updated. Don’t miss out on our free quote tool below and make sure you have the right coverage for Minnesota auto insurance requirements. Just enter your zip code and start comparing rates for free now.


  1. https://dps.mn.gov/divisions/dvs/forms-documents/Pages/motor-vehicle-forms.aspx
  2. https://www.consumerfinance.gov/ask-cfpb/what-is-force-placed-insurance-en-827/


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