Minnesota Auto Insurance Laws
Auto Insurance Laws and Trends in MN
Minnesota has implemented the no-fault system of insurance. This means that each insurance company involved will pay for their own injuries up to the maximum amount covered by personal injury protection (PIP). The minimum limit for PIP is $40,000. If the injuries and medical expenses exceed this amount, the victim can seek compensation through the responsible party. Other mandatory coverage includes under/uninsured motorist coverage ($25,000 per person and $50,000 per accident), bodily injury ($30,000 per person and $60,000 per accident), and property damage ($10,000 per accident).
Auto insurance details for Minnesota
There are many factors that influence insurance premiums. These include the age, gender, and marital status; vehicle make, model, and the amount of mileage driven annually; an individual's driving record, and the number of accidents, suspensions, or tickets accumulated; the amount of deductible chosen; and any discounts that may apply.
Under Minnesota law, insurance companies have the right to cancel an insurance policy within 59 days after the date of issue, except for discriminatory reasons. After these 59 days, an insurance company can cancel a policy for the following reasons:
- Non-payment
- Misrepresentation
- Fraud or fraudulent claim
- Failure to disclose accidents or traffic violations
- Omitting other drivers in the household from the policy
Grounds for refusal of auto insurance in MN
Auto insurance policies in Minnesota can be refused renewal for the above reasons, but a policy can also be cancelled if the driver has accumulated too many points, according to Minnesota's point system. Points are given to a driver if they have:
- Been involved in an at fault automobile accident
- Been convicted of DUI, reckless driving, or careless driving
- Accumulated several speeding tickets
- Been convicted of vehicular manslaughter or vehicle theft
Points are accumulated on an individual's driver's license and affect ability to obtain registration and insurance. Insurance rates will increase or the policy may be cancelled or refused renewal. Drivers will then be required to obtain a SR-22, essentially high risk insurance, for a period of 3 years.