Car Insurance in Minnesota

Posted & filed under States.

Minnesota QuarterMinnesota Auto Insurance Requirements

Reviewed by Dr. Christine Berry

Minnesota has very comprehensive auto insurance laws for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in Minnesota are mandated by state law and the Minnesota Department of Commerce. The following minimum coverage is required on every registered vehicle, except as noted below:

Table of minimum auto insurance requirements in the state of Minnesota

(Source: Minnesota Department of Commerce)

Driving without the mandatory liability insurance in Minnesota can result in a $100 fine and court costs for first offense, and/or jail time up to 90 days, and suspension of driving privileges.

The Minnesota Automobile Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the AIPSO website.

Factors Influencing Car Insurance Premiums in Minnesota

Getting a quote for cheap car insurance in Minnesota requires some research and rate comparisons between different insurance companies, even though Minnesota ranks below national averages for car insurance costs. Some factors that impact insurance rates in Minnesota include:

– Vehicle repair costs are generally less expensive in Minnesota than elsewhere
– Overall accident fatality rates are significantly lower than national averages
– Vehicle theft rates near national averages

The average auto insurance premium for residents in Minnesota is $694, which is a little less than the national average of $785.

Tips for Obtaining Cheap Car Insurance in Minnesota

– If you’re over 55, take a state-approved defensive driving course for a policy discount
– Some insurance companies offer “pay as you drive” car insurance for low mileage drivers in Minnesota
– If your vehicle is equipped with an authorized anti-theft protection device, you should receive a 5 percent deduction on comprehensive coverage If you have tickets or accidents on your record, you may get a surcharge from your company; check to see if other companies do not apply the surcharge and if that results in a lower premium; also make sure that the rates you are quoted include any surcharge.
-Maintain a good driving record
– Ask about discounts for college graduates and good students
– Bind multiple policies (homeowners, life, auto) with the same provider
– Maintain good credit score
– Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
– Discuss affinity discounts with your insurance provider
– Drop comprehensive and collision insurance on older vehicles that are paid off and are worth less than $1,000

Minnesota Statistics

Auto Theft: Minnesota has a vehicle theft rate near the national average, but it has been decreasing (as is the case in most states) consistently over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:

Table showing total and per capita motor vehicle theft in Minnesota, 1990 through 2010Graph illustrating the total number of stolen cars in Minnesota, by year from 1990 to 2010Chart showing per-capita auto theft in the state of Minnesota, annually from 1990 through 2010

(Source: Minnesota Department of Administration)

Automobile Accidents: The total vehicle miles traveled in Minnesota has remained almost constant in recent years. The vehicle accident fatality rate in Minnesota is among the lowest in the country.

Chart showing deaths from car accidents in Minnesota, 2006-2010(Source: National Highway Traffic Safety Administration)

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