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Auto insurance is typically required of all licensed vehicles. It can
vary from state to state as each state has their own requirements for
the minimum coverage.
The state of Minnesota requires all licensed vehicles to carry
insurance. The minimum requirements of auto insurance are Personal
Injury Protection (PIP), Liability, Uninsured and Underinsured. Two
types of optional types of coverage are collision and comprehensive.
PIP pays for you and others in your household in the event of an
accident. It covers lost wages, medical expenses and also replacement.
PIP is used no matter whose fault the accident is. Minnesota's minimum
PIP coverage is $40,000 per person per accident. That amounts to
$20,000 for medical expenses, including hospitalization and $20,000 for
costs not considered medical.
Liability coverage is what covers the driver when the accident is their
fault. This covers any damage done with their car. The minimum coverage
for liability is $30,000 for injuries to one person, $60,000 for
injuries to two or more people, and $10,000 for physical damage to the
other car or property.
Uninsured coverage pays your expenses after PIP has been exhausted when
the other driver is at fault with no insurance. The minimum coverage
for uninsured coverage is $25,000 for one person with injuries and
$50,000 for two or more people with injuries.
Finally, we have underinsured coverage. This is coverage that comes
into use after PIP is exhausted but the at fault party doesn't have
enough liability coverage to cover the medical expenses of the other
car's occupants.
Collision insurance is an optional insurance that will cover your
vehicle when there is damage to it either from an accident with another
car or object. Comprehensive insurance is used when the damage is not
from a collision. The can include, but not limited to fire, deer/car
collision, break-in or even objects hitting the car and causing damage.
Auto insurance requirements for Minnesota are set so that the insured
driver is protected from the financial burden in the event of an
accident. The minimum requirements insure the policy holder has the
proper coverage when its needed.
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