Minnesota State Minimum Car Insurance Requirements and Laws (2021)

There’s nothing more exciting than driving to the places you can’t wait to get to. That is, of course, if you’re properly insured.

In the state of Minnesota, driving without car insurance has serious consequences. If you don’t carry the minimum auto insurance coverage that state law requires, you can face high legal fines and even potential jail time.

Driving uninsured is simply not worth the risk. Especially if getting an insurance policy that meets coverage requirements in Minnesota is much easier and cheaper than you may think. Use a comparison tool like Insurify to compare real-life car insurance quotes from dozens of companies in under five minutes and save an average of $489 a year.

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Minimum Car Insurance Requirements in Minnesota

Auto insurance protects you from financial loss after a car accident or bodily injury. You agree to pay a certain monthly premium, and the insurance company agrees to cover any financial damages you suffer. Insurance policies come with different deductibles (what you have to pay out of pocket before your insurance kicks in) and payout limits (the maximum amount your insurer will cover).

To drive legally in Minnesota, you must carry the minimum amount of coverage state law requires. At a minimum, you need liability coverage, personal injury protection (PIP) coverage, uninsured motorist coverage, and underinsured motorist coverage.

Liability coverage: If you’re at fault during an accident, liability coverage covers the damage to the other driver’s vehicle. It also covers bodily injury that the other driver has sustained. Liability coverage does not apply to the damage to your vehicle or your bodily injury.

Personal injury protection coverage (PIP): If you’re injured after an accident and suffer economic losses due to that injury, this policy covers your medical bills, lost wages, and replacement services for you and your household members. Minnesota is a no-fault state, so PIP provides coverage regardless of who caused the accident. This is why PIP is also known as no-fault insurance.

Uninsured motorist coverage: If you run out of your PIP coverage, uninsured motorist coverage pays for your medical expenses. It also applies when the other driver was at fault but was driving uninsured.

Underinsured motorist coverage: This coverage is also an extension of your personal injury protection (PIP) coverage, and you can use it when the other driver is at fault but doesn’t have enough liability insurance to cover your medical expenses.

Your insurance policy needs to cover certain amounts in damages to satisfy Minnesota law. According to the Minnesota Department of Commerce, you need to have the following minimum limits to drive legally: