Car Insurance 101
The personal car (auto) liability coverage protects you against financial loss if you are legally liable for a crash. The personal Auto Policy is a contract between you and your insurance company which defines coverage, exclusions, and limits provided.
Minimum liability limits required varies by State. Minnesota requires minimum bodily injury and property damage limits of $30,000 each person, $60,000 each accident, and $10,000 property damage. Basic Personal Injury Protection (PIP) No Fault benefit of $20,000 medical and $20,000 other Expense is required. A minimum Uninsured and Underinsured Motorist limit of $30,000 each person, $60,000 each accident is also required. Most people however should purchase increased limits to more adequatly protect their financial future.
Learn more at the Insurance Information Institute web site.
Auto Insurance 101 - compliments of the Travelers
What you need to know about - Auto Insurance. MN Commerce Dept.
General questions about auto insurance in minnesota, go to FAQ - Car Insurance
Minnesota Motor Vehicle Manuals On-Line.
Minnesota No-Fault Automobile Insurance Facts & Figures
Get Vehicle ratings at the Insurance Institiute for Highway Safety web site.
No-Fault Insurance.
In Minnesota, your automobile is required by law to have no-fault coverage. The minimum coverage required by law in the state of Minnesota is $20,000 for medical, chiropractic expenses, medications, and related mileage. Also, $20,000 for wage loss and replacement services. There are limitations on the amount of wage loss and replacement services an injured person can receive on a weekly basis. No-fault benefits are available for a person injured arising out of the maintenance or use of a motor vehicle regardless of who caused the injuries.
If a person has multiple vehicles, our office strongly suggests a person consult their insurance agent regarding “stacking” of their no-fault coverage. For a nominal charge, no-fault coverage on multiple vehicles can be stacked providing an injured person with higher no-fault coverage.
Uninsured Motorist Coverage.
This coverage on your own policy will allow you to place a claim for your injuries against an at-fault driver if the at-fault driver did not carry liability insurance on their motor vehicle. This coverage may also allow you to place a claim against hit and run drivers or by out of state drivers if their liability limits are less than $30,000. Uninsured motorist coverage is inexpensive and very Important. Our office believes that uninsured motorist coverage of at least $100,000 should be purchased, more coverage if your assets, or future income potential warrants.
Underinsured Motorist Coverage.
This coverage on your own policy, or on the vehicle that you were occupying, will allow you to place a claim for your injuries if the coverage carried by an at-fault driver is insufficient to compensate you for your damages. Our office believes that underinsured motorist coverage of at least $100,000 should be purchased, more coverage if your assets, or future income warrants.
Comprehensive Insurance (Other than Collision) Coverage.
Comprehensive provides coverage for any direct and accidental loss of, or damage to, YOUR covered automobile and its normal equipment, to include but not limited to fire, theft or malicious mischiefCollision Coverage.
Collision Coverage
Collision reimburses you for damage to YOUR automobile sustained in a collision with another car or with any other object, movable or fixed, (for example, you accidentally backed into another object while pulling out from a parking stall and causing damage to the bumper and fender of your covered automobile). Collison coverage is also desired if you wish for your vehicle to be repaired after someone runs into your vehicle while parked and you have no idea who did it.
Important:
Choose your Insurance Agent (Advisor) carefully. Insurance is a legal contact between you and your insurance company. Coverage and benefits are paid according state laws and policy language. If you are not using an experienced Trusted Choice Insurance Agent, call us and find out what you may be risking.
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