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Minnesota’s Mandatory Car Insurance Fines & Penalties

Minnesota is state with comprehensive and strict insurance laws. The state is a no-fault state which means every driver is going to be required to carry Personal Injury Protection or (PIP). The no-fault status of the state helps to increase the claims process no matter who is at-fault during the accident and has reduced the amount of insurance fraud for the state of MN. The minimum requirements for the state of MN is as follows:

Personal Injury Protection

  • $40,000 per person per accident and $20,000 for hospital/medical expenses and $20,000 for non-medical expenses such as lost wages, replacement services, etc.

Bodily Injury Liability

  • $30,000 for injuries to one person & $60,000 for injuries to two or more people

Property Damage Liability

  • $10,000 for physical damage to the other driver’s vehicle or for damage to property

Uninsured and Underinsured

  • $25,000 for injuries to one person & $50,000 for injuries to two or more people

Although these are the minimums most drivers carry more insurance in the state of Minnesota including comprehensive and collision cover. It is important to note if you have financed your vehicle, the bank, which technically owns the car while it is finance, will require you to carry the minimum cover including comprehensive and collision.

Minnehaha Falls

Really neat picture of Minnehaha Falls Cave. Photo courtesy of MJI Photos / Flickr: capturingwonder / Via Creative Commons

If you do not purchase the non-mandatory insurance then the lending institution may buy it and charge you for the premium. This is called “force insurance” which is very expensive. Banks and lending institutions will pay for comprehensive and collision insurance and will charge you for the amount of the cover which can be hundreds of dollars. They will enforce the insurance plan as long as you do not provide evidence of both types of cover.

Even if you have not financed your vehicle you want to consider comprehensive and collision coverage since the Twin Cities has severe weather during the winter season and this will protect you in case you may hit a animal, such as deer, or cracked glass from hail.

Not only does Minnesota have strict laws for car insurance the penalties for not carrying insurance are higher than the nations average. First time offenders can have a fine of $1,000 plus court cost and fees. If you are unable to provide proof of insurance to the police officer your fine may be waived if you are able to provide proof of insurance at the time of your court date.

The most effective ways to reduce insurance costs in the state of MN are as follows:

  • Be sure to comparison shop – we have a comparison tool at the top of the page

  • Be sure to talk to more than one agent and insurance firm

  • Consider increasing your deductible which will lower your monthly premium

  • Always ask the insurance firm for any available discounts

  • Consider taking a defensive driving course recommend by the state

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Greg Fowler
I love to network, travel, and spend time with my children. When I am not doing that I am working on AutoInsureSavings or other websites. If I am working, the best way to reach me is via my Google+ Profile.

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