Insurance Minnesota: A Guide to Auto & Home Coverage
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The homeownership rate in Minnesota is 72.3%, and the average property value is $286,800. The typical household owns at least two cars and brings in an income of $84,313. When you factor in the house and cars ($30,000 each), you get assets worth around four times the average household salary. So, how do you protect your assets without risking your financial security?
Minnesota insurance is the primary way to reduce financial risks should an accident or disaster damage your property. Still, do you know how much coverage you need or the type that offers the most protection? Minnesota makes it easy with auto insurance and mandatory minimums, but is that enough in a no-fault state?
Minnesota's No-Fault Insurance System
Minnesota uses a no-fault system for auto insurance. This means that, regardless of fault, each driver is responsible for their injuries and damages. Each driver files a claim with their respective Minnesota insurance companies to receive payment for covered damages, medical costs, and other losses, like lost wages.
However, you can still hold other drivers liable for damages in certain situations. For example, if a driver runs a red light and crashes into you, causing severe injuries like head trauma and broken bones, you might be able to sue.
Minnesota might allow you to sue if the sustained injuries cause permanent disabilities, the financial cost of the damages exceeds your personal injury protection (PIP) coverage, or if you have ongoing medical expenses. An attorney can offer more clarity.
Minimum Liability Coverage and Legal Requirements
Minnesota auto insurance requirements exist to reduce the need for litigation and ensure adequate protections for all drivers. Despite it being a no-fault state, you must purchase and maintain liability and PIP coverage.
Every Minnesota insurance company must offer minimum coverage policies. Some refer to the policies as a 30/60/10 split. This means that a driver has $30,000 per person and $60,000 per accident in bodily injury liability coverage. The 10 stands for $10,000 per accident for property damage.
PIP coverage is likely the most critical coverage in a no-fault state because it covers personal injuries. That said, it doesn't cover property damage to your vehicle or belongings. You'll need collision and comprehensive coverage for that.
The state requires a minimum PIP coverage limit of $40,000 per accident: $20,000 for medical expenses and $20,000 for nonmedical costs, such as lost wages.
Review the insurance requirements of your state:
Home Insurance in Minnesota: Key Considerations
When looking for homeowners insurance in Minnesota, you should consider the climate and risks of the area. From heavy snow to strong winds and flooding, the state experiences severe weather throughout the year. More mountainous regions of the state can experience landslides.
Minnesota is best known for its harsh winters. Not only can freezing temperatures last for months, but the state averages around 70 inches of snowfall annually in the northeast and 30 inches in the southeast. And blizzards occur twice a winter on average.
You don't want to pay out of pocket for damages caused by freezing rain, ice, sleet, or heavy snow. To limit your risks, invest in an affordable home insurance policy to limit your risks.
Comparing Insurance Policies in Minnesota
Licensed Minnesota insurance companies offer similar policies at different rates to consumers. However, finding an affordable policy that covers everything you need can be challenging, so comparing one policy to another is usually necessary.
You can compare insurance quotes manually by reviewing the documents side by side, but the amount of paperwork and the complexity of the language might complicate the process. Comparing policies digitally is typically much more straightforward.
EverQuote offers a free comparison tool that lets you compare several policies simultaneously. Its layout is easy to read, and navigation is simple, reducing the frustration caused by manual comparisons.
Finding Affordable Insurance Options
When it comes to affordable home insurance and cheap car insurance in Minnesota, the best rates typically go to those with good credit and a healthy claims history. Still, even people with less-than-perfect credit can secure decent rates if they know how.
Most insurance companies offer discounts. Some require qualifications like military service, while others only require upgrading home security systems or performing routine vehicle maintenance.
You can also qualify for lower premiums by bundling your home and auto policies. Bundling refers to using the same insurance company for multiple policies.
Understanding Minnesota-Specific Regulations
Minnesota car insurance is the primary required insurance in the state. You must maintain a policy with minimum coverage limits on every vehicle you own. Failure to maintain policy limits or coverage can result in fines and other penalties.
Resources for Insurance Quotes and Guidance
Visit the Minnesota Department of Commerce Insurance Division to learn more about state requirements. For insurance quotes and policy details, use EverQuote's comparison tool.
Secure the Right Auto Insurance Today
Whether you are looking for Minnesota insurance to cover your home or car, you'll want to compare several quotes. The EverQuote comparison tool is free and allows simultaneous, side-by-side comparisons of multiple policies and insurers.