All 50 U.S. states require drivers to carry auto insurance, but the level of required coverage varies from state to state. All Minnesota drivers must show proof of insurance in order to register or renew registration on a vehicle. Driving without proper insurance is a misdemeanor in Minnesota and the penalties can range from fines of $250-1,000 to prison time of up to 90 days.

Minimum Required Insurance Coverage in Minnesota

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $30,000 for one person
• Minimum of $60,000 total for the other driver and all passengers

PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and other public or private property surrounding the accident scene

• Minimum of $10,000 for all damages
• Minimum of $35,000 without deductible for rental car coverage

PIP (Personal Injury Protection): Coverage for injuries to yourself and your passengers

• Minimum of $40,000 per accident ($20,000 for medical/hospital expenses and $20,000 for non-medical expenses resulting from the injuries)

UMC (Uninsured/Underinsured Motorist Coverage): Coverage for injuries to yourself and your passengers from an accident caused by an uninsured or inadequately insured driver

• Minimum of $25,000 per person
• Minimum of $50,000 per accident

About Liability Coverage

Liability insurance is designed to cover the medical and property damage expenses of the other driver if you cause an accident. It does not, however, cover damages to your own vehicle. If your vehicle is damaged in a collision caused by another driver, that driver’s liability insurance will cover the cost of repairing your vehicle. If you cause an accident and you do not carry collision coverage, the damage to your vehicle will not be covered by insurance at all.

Rental Car Coverage

As part of their PDL plan, Minnesota drivers are required to include a minimum of $35,000 in coverage for rental vehicles, with no deductible.

About Personal Injury Protection

Because Minnesota is a no-fault state (see below for explanation), your PIP coverage will automatically pay for your injuries (and those of your passengers) following an accident, regardless of who is at fault. The minimum required PIP coverage of $40,000 may not be sufficient to cover all of your medical costs, including medical bills, lost time, rehabilitation/physical therapy, and pain and suffering, so you should consider purchasing more than the minimum required amount of coverage. On the other hand, most health insurance plans also cover this type of injury, so if you have health insurance, it may be sufficient to purchase the minimum amount of required PIP coverage through your auto insurance provider.

Optional Coverage

In order to be covered for damages to your vehicle in an accident that is your fault, you must purchase collision coverage. Additionally, depending on whether you have a loan or a lien on your vehicle, you may be required to carry collision coverage (pays for damage to your own vehicle if you cause an accident) or comprehensive coverage (pays for damage to your vehicle caused by factors other than an accident, such as fire, flood, vandalism, and theft). Though these additional types of coverage are not required by the state of Minnesota, you should check with your lender or lien-holder to determine what types of coverage you are personally required to carry.

No-Fault Insurance System

Minnesota operates under a no-fault insurance system regarding personal injury. This means that injuries resulting from an accident are the responsibility of the injured person’s insurance, regardless of who caused the accident. The no-fault system only applies to physical injuries, costs resulting from the injuries such as lost wages and rehabilitation, and funeral costs of up to $2,000. Property damage, on the other hand, is the financial responsibility of whoever is at fault for the accident. If your PIP plan does not cover the entire expense of your injuries in an accident caused by another driver, you are entitled to recoup the remaining expenses from that driver’s BIL coverage.

Under the no-fault system, you are prevented from seeking legal recourse against an insured driver, even if that driver caused the accident. There are some exceptions to this rule, depending on the severity of the accident and whether the accident took place within the state. Check with your insurance company to find out the specific exceptions to the no-fault litigation guidelines.

State-Issued Proof of Insurance

Minnesota drivers are required to carry proof of insurance in their vehicles at all times. If you are involved in a traffic accident or traffic stop, you will be asked to provide proof of insurance. Uninsured Minnesota drivers may be subjected to fines of $250-1,000 and up to 90 days in prison.