Most states require drivers to carry a minimum amount of auto insurance. However, the required coverage levels vary among states. As a Minnesota driver, understanding its specific insurance requirements can help you avoid the potential penalties of driving without the right coverage. Minnesota not only requires liability coverage, but also personal injury protection (PIP) and uninsured/underinsured motorist coverage. PIP coverage, also known as no-fault coverage, pays for your own injuries after an accident, regardless of fault.

In addition to the minimum amount of required coverage, some drivers choose to purchase more protection. Here’s what you need to know about car insurance requirements in Minnesota.

Minnesota car insurance requirements

Minnesota has a 30/60/10 minimum requirement for car insurance, which means drivers must carry at least $30,000 per person and $60,000 per accident for bodily injury liability and $10,000 per accident for property damage liability.

Drivers must also carry at least $40,000 in PIP coverage per accident and $25,000 per person and $50,000 per accident in uninsured/underinsured motorist coverage.1

Bodily injury liability

Bodily injury liability is part of your liability car insurance coverage. Minnesota law requires drivers to carry at least $30,000 per person and $60,000 per accident.1

If you cause an accident, this coverage will help pay for the other party’s medical costs, up to the policy limits. This insurance won’t cover your medical bills for injuries from a car accident you cause.

Property damage liability

Property damage liability is the other half of your liability car insurance. Minnesota state law requires drivers to carry at least $10,000 per accident in property damage liability coverage.1

This type of insurance covers repair costs and damage expenses to other cars and property in an accident you cause. Again, property damage liability coverage doesn’t cover damage to your own car.

Personal injury protection (PIP)

Minnesota requires drivers to carry at least $40,000 per person in personal injury protection (PIP) coverage. The coverage breaks down into $20,000 for hospital and medical expenses and $20,000 for non-medical expenses.1 Non-medical expenses could include lost wages, replacement services, up to $2,000 in funeral expenses, and more.

Your PIP insurance provides coverage for you and your passengers regardless of fault. After an accident, you first make a claim through your PIP insurance for coverage. If you’re not at fault and your expenses exceed your PIP coverage, you then make a claim against the at-fault driver’s liability coverage.1

Uninsured/underinsured motorist coverage

Minnesota requires drivers to carry $25,000 per person and $50,000 per accident in both uninsured and underinsured motorist coverage. If an uninsured (or underinsured) driver causes an accident and you suffer bodily injury, uninsured motorist coverage covers your medical expenses.

If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will pay the rest of your medical expenses.

Do you need more than state-minimum coverage in Minnesota?

A liability-only policy meets the state’s minimum coverage requirements. While liability-only policies tend to be the cheapest option, they might not offer enough financial protection for every driver.

For some drivers, it’s a good idea to purchase a full-coverage auto insurance policy. This includes collision and comprehensive insurance, which covers your vehicle’s damages after an incident. Additionally, some drivers might purchase a policy with higher liability coverage limits.

How much coverage you need is a personal decision based on your unique financial situation. Drivers with enough emergency savings to cover repairs after an accident might forgo a full-coverage insurance policy. But drivers who want help covering repair costs after an accident should consider a full-coverage policy.

But if you finance or lease your car, the lender or lessor might require you to purchase comprehensive and collision coverages to protect its investment.

The cost of liability-only car insurance in Minnesota

Minnesota drivers pay an average of $93 per month for liability-only car insurance. After an accident you cause, this coverage helps pay for the other parties’ injuries and damages.

Here are average car insurance quotes from insurance companies in Minnesota.

The cost of full-coverage car insurance in Minnesota

Drivers with a full-coverage insurance policy tend to pay more. On average, drivers in Minnesota pay $172 per month for a full-coverage policy. Although it’s more expensive, a full-coverage policy comes with more robust financial protection on the road.

The table below shows the average costs of a full-coverage car insurance policy by insurance company in Minnesota.

Penalties for driving without proof of insurance in Minnesota

If you drive without sufficient insurance in Minnesota, expect severe penalties. Depending on the situation, you might face the following:

• Fines: You might face a fine of at least $200. In some cases, the state will accept community service instead of the fine.2

• Misdemeanor charges: The state may charge you with a misdemeanor for driving without the minimum amount of insurance.

• License and registration revocation: The state may revoke your driver’s license and plates if you fail to show proof of insurance.3

Optional car insurance coverages to consider

While you must carry a minimum amount of coverage, you can also purchase optional insurance coverages for more protection on the road. Below is a closer look at some of the optional coverages available: