The LowestQuotes.com Insurance Index reports an average car insurance rate of $1,142 per year for Minnesota residents, 20 percent below the national average of $1,420. The minimum requirements for Minnesota are very similar to most Mid-Western states. Liability, personal injury protection, and uninsured/underinsured coverage is what you are going to need to keep your vehicle, (and yourself), out of hot water with the authorities.

Your Minnesota car insurance liability coverage must be a minimum of 30/60/10. This is insurance speak for $30,000 in bodily injury coverage for a single person in an accident, $60,000 for all persons injured in the same accident, and $10,000 to repair or replace property that is damaged in the same accident. This may seem like a lot, but these expenses can rise faster than yeast in a warm oven when you are involved in a car accident.

Minnesota also requires that you purchase personal injury protection or PIP. It must be at least $40,000 worth of coverage. The breakdown is, $20,000 for medical expenses and $20,000 for non-medical expenses. This is paid no matter who is at fault; this is to cover you and the people in your car. A “No Fault” state Minnesota adopted this system because it reduces the incident of insurance fraud, and assures that people in the accident will have their bills paid.

One last type of required coverage in Minnesota is the uninsured/underinsured part. The minimum is 25/50. This pays $25,000 for one person and $50,000 for all persons combined. This kicks in if the person you have an accident with is at fault and has either no insurance or limited insurance benefits. This pays after your PIP has been exhausted, and it has been determined that the person who caused the accident has no or not enough insurance coverage to pay all the expenses incurred.

If you allow your insurance to lapse or just blatantly do not get car insurance, the penalties in Minnesota will vary. Penalties are dependent on how many times you have been caught without car insurance. The first time is considered a misdemeanor. Subsequent times you allow this to happen will cause the charge to go to a gross misdemeanor if you have committed the same offense within 10 years of each other. If you are convicted you can go to jail for up to 90 days and/or pay fines that range from $250 to $1,000. You may have your driver’s license suspended as well.

Whether you are commuting to your job at the bank or mall, or heading out to the frozen winter wilderness for a day in the snow one thing remains consistent. You have to have car insurance if you are going to drive your vehicle anywhere in Minnesota. Car insurance is for your protection. Keeping a good policy in force will help you rest at ease as you drive, no matter where you are heading.