Minnesota Department of Commerce
Auto Insurance Basics
Required: Under most circumstances, a licensed vehicle in the state of Minnesota must have personal injury protection, liability, uninsured motorist, and underinsured motorist coverage.
- Personal Injury Protection (PIP) coverage provides basic economic loss benefits. If injured in an accident, this portion of the policy pays, within the stated limits, for medical expenses, lost wages, and replacement services. These costs are paid no matter who is at fault. This is what is known as “no fault” coverage. No-Fault claims must be made within six months of the accident. They must include proof of expenses, a completed application for benefits, and the injured must submit to a medical examination if requested.
- Liability coverage involves claims from another driver. This portion of the policy pays, within the stated limits, for damage to another’s vehicle.
- Uninsured coverage pays, within the stated limits, for the medical expenses after exhausting PIP benefits and when the other driver is held responsible for the accident but is not covered by insurance.
- Underinsured coverage pays, within the stated limits, only for medical claims of those covered by the policy. These benefits are in addition to the PIP benefits and are used when the other driver is held responsible for the accident and does not have enough liability coverage to cover medical claims.
Optional: Minnesota state law does not require comprehensive or collision coverage, but the vehicle’s lien holder will.
- Collision coverage pays damage to policyholder vehicle when involved in an accident with another vehicle or object.
- Comprehensive coverage pays a loss that is NOT the result of a collision. This usually includes fire, theft, vandalism, falling objects, or an accident involving a deer.
All amounts of coverage in the policy agreement, whether per person, per claim, per claimant, per occurrence, aggregate, or otherwise stated, are subject to and governed by the statutory tort liability amounts provided in Minnesota Statute 466.01 to 466.15.
Reference: Minnesota Statute, Chapter 65B – Automobile Insurance
Minnesota Statute, Chapter 466 – Tort Liability, Political Subdivisions