Car insurance is a necessity these days and it pays to do your research – to get good coverage at reasonable prices. Also important to keep in mind is the fact that requirements vary from state to state in the US.
Requirements in Minnesota
As per the state laws, Minnesota is a no-fault state and drivers have to meet certain minimum criteria. They are as follows
- Minimum of $40,000 in Personal Injury Protection coverage
- Liability coverage, coverage for underinsured and uninsured drivers
- Comprehensive and collision coverage absolutely required by people who are still making payments on their vehicle.
- The biggest benefit of liability coverage is that it protects drivers from getting hit with claims from other companies.
No-fault or Personal Injury coverage requirements were instituted in 1974. Residents and non-residents need this coverage to drive in this state.
This law was set up to make sure that people who were driving and involved in an accident so that they could get $20,000 to cover any economic losses and also get $20,000 towards car liability coverage.
Residents from other states who might be driving through Minnesota can also benefit from this rule if their insurance company is certified to do business here.
Tips to Consider
- Comparison shop and talk to different insurance companies before deciding.
- Check even with local companies – they may be able to offer better rates.
- Be aware that insurance costs are generally higher in the metros than in smaller towns.
- Age and experience are big factors – after age 25, rates begin to drop. Beginner drivers like teenagers usually end up paying more by way of premiums.
- Factors like good credit scores, age of the car, lack of traffic tickets and violations will help to keep rates down.
- Make sure to ask about surcharges so that you can find affordable insurance.
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