Minnesota Car Insurance

If you are currently residing in Minnesota, take a few minutes to review your car insurance policy to ensure you, your family, and your vehicle has the best possible protection. It is also wise to compare your policy with a variety of quotes from different insurance providers to ensure you are not paying too much. Drivers in Minnesota should check their car insurance policy at least once a year to ensure optimal protection.

Known as the land of 10,000 lakes, Minnesota has a little over five million residents. It is the nation's 21st most populated state, and has the 12th largest land mass. However, nearly 60% of Minnesota's residents live in the Minneapolis/Saint Paul metropolitan areas also known as the Twin Cities. Minnesota is home to major sports franchises including the Minnesota Twins, Timberwolves, and Vikings. Due to its numerous lakes and recreational activities, Minnesota enjoys a steady influx of visitors that in turn contribute millions of dollars to the local economy.

Minimum requirements

Minnesota law requires that all drivers possess and maintain the following forms of insurance: Personal Injury Protection (PIP), Liability, and Underinsured/Uninsured Motorist (UM). Below are the state minimums for each form of insurance:

PIP: $40,000 of protection for a single person involved in an accident ($20,000 for hospital/medical expenses, and $20,000 for non-medical expenses including lost wages and replacement services).

Liability: $30,000 of coverage for a single person involved in an accident, $60,000 for all parties injured in an accident, and $10,000 worth of property damage protection.

UM: $25,000 of protection for a single person, and $50,000 for all parties involved.

If you finance a car in Minnesota, you are required to carry both comprehensive and collision insurance. Comprehensive insurance protects drivers from theft, vandalism, and weather related damages such as hail. Collision insurance provides financial protection in the event of a motor vehicle collision and regardless of fault.

Although, the state determines the minimum amount of insurance, it is wise to consider increasing the financial limits for each form of coverage. For example, Minnesota drivers only have to carry $10,000 worth of property damage protection. If an accident occurs where the other vehicle sustains massive amounts of damage, $10,000 simply won't be enough. Drivers have the option of either increasing this limit or having to pay for the remainder of the balance out of their pocket.

Statistics

In 2006, Minnesota reported 78,745 traffic accidents. This number was the lowest amount of accidents on record since the 1960s. There were also 494 deaths due to traffic accidents in 2006. Surprisingly, two-thirds of all traffic deaths occurred in rural areas. A rural area is one that has fewer than 5,000 residents. Consequently, the State of Minnesota suffered 1.6 billion dollars in economic loss due to traffic accidents.

Not surprisingly, young drivers were involved in more accidents than any other age group. There are 3,871,160 licensed drivers in Minnesota. Teenagers account for only 7% of this number, yet were involved in 14% of accidents. Comparatively, drivers 65 and up represent 15% of the total drivers in Minnesota, yet were only involved in 7% of the accidents.

If you have a teenager in your family that is ready to get behind the wheel, take the extra time to ensure your policy best protects them from financial burden. It is also wise to enroll your teenager in driver's education courses and well as additional defensive driving classes to help them better prepare for the numerous risks on the road.

Deductibles

Every insurance policy requires drivers to choose a deductible. A deductible is the financial amount a driver is responsible for paying before the insurance company pays anything towards the financial limits of the policy. A general rule of thumb is that the higher the deductible, the lower the annual premium. However, choosing a high deductible does have risks. For example, if you raise your deductible to $1000, you must pay this amount before any funds come from your insurance provider. If you choose a smaller amount, you might only have to pay $500 before your insurance company pays for damages. Generally, drivers who have been involved in multiple accidents or those who frequently drive in risky areas should choose a smaller deductible. However, it is vital that Minnesota drivers discuss the costs of raising or lowering a deductible with a qualified insurance professional before making a decision.

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