How to Get Car Insurance in Minnesota
Minnesota car insurance is more affordable than you may think. In fact, it costs nearly 12 percent less than the national average. This allows you to shop for very competitive rates that cover more than the state minimum requirements. However, insurance prices increase significantly for at-fault accidents and other violations. To avoid these penalties, practice defensive driving, keep track of your driving record and stay informed on state laws and regulations.
Obtaining car insurance quotes is critical to finding the lowest rates for the best coverage. You may compare car insurance quotes online, or by calling different companies directly. Remember that the lowest quote does not always mean you will receive high-quality insurance. Therefore, it is important to compare company ratings, discounts and customer service reviews. To make sure that your comparisons are accurate, ask each company for the same type of coverage and the same deductibles.
Best Auto Insurance Companies in Minnesota
Finding the best car insurance for you – and your family – takes time and research. The larger, well-known companies often do the most advertising, and make it easy to understand state insurance requirements. However, you may want to obtain a few quotes from smaller companies, as well, because they can offer rates that are just as competitive.
Instead of looking for cheap insurance companies in MN, look for the best coverage at the most affordable price. It may also help to look at auto insurance company ratings to see what other customers have to say about coverage, premiums, customer service and more. A few companies that insure Minnesota residents include:
- State Farm.
- Progressive Insurance.
- Geico Insurance.
- AAA insurance.
- Farm Bureau Financial Services.
- West Bend Mutual.
The bigger auto insurance companies, such as State Farm and Allstate, provide competitive rates, good customer service and premium discounts. Farm Bureau Financial Services (FBFS) and West Bend Mutual are lesser-known companies that also offer competitive rates, but work in unique ways. FBFS requires you to have a membership in order to receive insurance. West Bend Auto Insurance covers your vehicle and home on one, comprehensive policy, so that you only pay one premium. You may even receive more coverage on this policy than you would on a standard auto policy. If you already have home owner’s insurance, however, this type of coverage may not be for you.
Best Insurance for Young Drivers in Minnesota
In general, new driver insurance may dramatically raise your premium. Fortunately, many insurers offer discounts to help ease the cost of young drivers and improve their safe driving skills. FBFS, for instance, offers a young driver safety program to new and inexperienced drivers. If your teen (or you) successfully completes the course, you will receive a discount on your premium.
Cheap insurance for young drivers in MN may be difficult to find, especially if your teen is 16 to 18 years of age. If you want to add a teen driver to your plan, you may also want to research companies that provide small and large accident forgiveness. For example, Progressive does not raise your rate for a claim less than $500 if you are a first-time policy owner. If you have been with Progressive for at least five years and have had no accidents in the last three years, you may not have an increased rate after a major accident.
How much is car insurance in Minnesota?
Wondering how to buy cheap auto insurance online? The low price may not be worth it if you cannot verify the company. If a rate seems unrealistic, it probably is. Rates also very drastically, depending on your circumstances, so a low rate is never guaranteed. Focus, instead, on comparing quotes from verifiable companies.
How much does car insurance cost in Minnesota? Luckily, there are many affordable policies in the state. The average cost of insurance is $1,258 per year, which is significantly lower than the national average of $1,426 per year. This average yearly car insurance premium varies for MN residents who are not considered standard drivers. Non-standard drivers include young drivers, drivers with poor credit scores or drivers with violations on their car records.
How to Lower Your Car Insurance Premiums
Traffic school, which often has a different name under different insurance providers, is a way of lowering your premium if you are younger than a certain age, older than a certain age or have multiple traffic violations or accidents on your record. Different programs include defensive driving courses for older drivers and driving safety courses for younger drivers.
There are many other ways to lower car insurance in Minnesota if you do not want to take a driving course. You may choose to bundle your auto plan with a homeowner plan, ask for a higher deductible, reduce coverage on older cars or maintain a good credit score. You may also benefit from shopping for new insurance every two to three years. This is because some companies take advantage of customer loyalty by increasing their premiums over time.
Minnesota Auto Insurance Discounts
Discount car insurance is not difficult to obtain for good drivers. This is because most companies offer a safe driver discount, also known as a good driving discount. To qualify, you and the other drivers in your household must have no moving violations and no at-fault accidents during a certain time period. For State Farm, Progressive and other companies, this time period is three years, while the time period for Geico and other companies is five years.
A MN good student discount is another option offered by many companies, including State Farm, Progressive, Geico, FBFS and more. Eligible students must be below a certain age, currently enrolled in school and maintaining a minimum GPA.
Some companies offer military discounts for car insurance to help support servicemen and women. To qualify, you must be on active duty, retired from the military or a member of the National Guard or Reserves. The Geico military insurance plan also offers emergency deployment discounts to certain members of the U.S. Armed Forces. Other company-specific discounts include the:
- Allstate new car discount.
- Geico air bag discount.
- Progressive automatic payment discount.
- FBFS bundling discount for bundled insurance plans.
Keep in mind that many companies have similar discounts under slightly different names.
Factors That Will Make Your Insurance Prices Increase
High risk insurance in Minnesota and most states typically involves high premiums, because the drivers who need it have serious faults or violations on their records. You may be considered a high-risk driver if you have a poor credit score, at-fault accidents on your record, severe traffic violations, do not own a home or have a DUI suspension on your record.
“How much does insurance go up after an accident?” is a common question asked by consumers. Unfortunately, the average premium in the state increases by 87 percent after one at-fault accident. Fortunately, the average insurance rate is relatively low, so an increased premium in the state may be lower than increased premiums in other states. If the accident is minor, or is the fault of another driver, the increase in premium will be less. Some companies offer accident forgiveness for a first-time accident. Other factors that can increase a person’s insurance prices include: age, gender and marital status. For example, a young and single driver will have higher insurance than an older, married driver.
Car Insurance Requirements in Minnesota
“How much car insurance do I need in MN?” is a common question asked by consumers. Under the state No-Fault Automobile Insurance Act, residents and nonresidents must meet minimum insurance requirements. These requirements include:
- A Personal Injury Protection (PIP) plan, also known as basic economic loss benefits.
- Liability coverage.
- Underinsured motorist coverage.
- Uninsured motorist coverage.
PIP, which is considered no-fault coverage, helps cover medical or funeral expenses if you – or your passengers – are hurt, or become deceased, due to a car accident. Contrary to popular belief, no-fault coverage does not cover all losses in an accident. Liability coverage consists of bodily injury liability and property damage liability. Bodily injury liability covers injury or death-related expenses of other drivers or pedestrians when you are at fault for an accident. Property damage liability covers you for an at-fault accident, and helps with damage expenses for another person’s property, such as vehicles, homes and buildings.
The other two car insurance requirements, underinsured and uninsured motorist coverage, help cover your medical expenses if you get into an accident, and the other driver is at fault. This coverage protects you from paying for your own expenses if the other driver has no liability insurance or not enough liability insurance.
Additional Coverage Options in Minnesota
Comprehensive insurance is a common optional coverage plan that people choose to add to their policies. This covers losses that are a result of fire, theft, falling objects or animal-collision accidents. MN collision insurance is another common add-on, which covers damage to your own vehicle or the cost of replaying your vehicle after a serious accident. Remember that these types of coverage, and other additional options, may be requirements for leasing or financing your vehicle.
Auto Insurance Alternatives in Minnesota
A surety bond in MN, and in most states, is defined as a contract between the consumer requesting the bond, the person or state requiring the bond and the company that guarantees payment, if the consumer is unable to pay. This process is sometimes called self insurance, because the consumer is setting aside his or her own money to be used in the event of an accident. Unfortunately, Minnesota is one of the 18 states where surety bonds in lieu of insurance are not allowed.
Proof of Insurance in Minnesota
You must present proof of insurance when you register your car in person, at a motor vehicle Deputy Registrar Office or by mail, with Driver and Vehicle Services (DVS). Proof is typically in the form of an insurance identification card, which may be presented in a hard copy, or in an electronic format. You must always have your insurance identification in your vehicle while you are driving, and present it to a licensed officer when requested. To obtain proof of insurance, contact your insurer.
Penalties for Not Having Car Insurance in Minnesota
The penalty for driving without insurance may include fines, imprisonment, license suspension, registration suspension, community service and having your vehicle impounded. If you do not show a licensed officer your proof of insurance upon request, you will be found guilty of misdemeanor. Fines for this misdemeanor range from $200 to $1,000. You may be imprisoned for up to 90 days, and your license will be suspended for 30 days, or until you provide proof of insurance. If 12 months pass, and you still do not provide proof of insurance, you may face other consequences. The car insurance law in MN for community service allows a court to sentence you with community service if you are unable to pay a fine.
Car Accident Rates in Minnesota
Car accidents in MN have decreased in recent years, according to statistics. In 2016, the total number of reported crashes reached 79,069, while the total number of reported crashes in 2017 was 78,465. The number of people who died from traffic-related incidents also decreased by 9 percent. Of the 2017 reported accidents, 4,418 were alcohol-related, 358 people died and 29,412 people were injured. While the state has improved in terms of how many accidents occur, it cannot determine the exact level of improvement, because it changed its crash reporting system in 2016.
How to File a Car Insurance Claim With Your Insurance Company
To file a car insurance claim in Minnesota, first obtain the names of the other drivers involved, their insurance companies, policy numbers and license plate numbers. If there were witnesses, obtain their names, addresses and phone numbers. Most major insurance providers allow you to file a claim online, by phone or through the company’s mobile app. If you are unsure of the appropriate filing method, it is recommended that you at least call your agent or the claims processing number for your policy.
Minnesota SR-22 Insurance
The SR22 in MN is known as an insurance certification. This type of certification is usually required for drivers with DUI offenses, moving violation convictions or multiple traffic offenses in a certain time period. If a person is caught driving without insurance or was in an at-fault accident without insurance, he or she may also be required to obtain an insurance certification upon the reinstatement of his or her license. There is no such thing as SR-22 insurance, but there is high-risk insurance. To find affordable SR22 quotes, look for providers that offer high-risk insurance plans.
Tips for Avoiding Car Insurance Fraud in Minnesota
A car insurance scam may be committed by the insurance provider, the insured or outside entities, such as a medical provider. A scam committed by the provider may occur when an agent takes a person’s premium payments, and does not pass them onto the insurance company. The agent may also give the person a fake policy or issue no policy at all. Sometimes, an entire company may be illegitimate. Be sure to verify a company before you purchase anything from it. Check for reviews, contact the company by phone and never make checks out to an individual agent. If a consumer unknowingly purchases fake insurance from a fraudulent company, he or she may be on the hook for penalties or fines.
Most Stolen Cars in Minnesota
The most commonly stolen cars in MN are typically older models, as these cars often do not have smart keys or anti-theft technology. The cars most likely to be stolen in 2017, listed by vehicle type and year, included the:
- Honda Civic, 1998
- Honda Accord, 1997
- Chevrolet Pickup, full size, 1999
- Honda CR-V, 2000
- Ford Pickup, full size, 2001
- Toyota Camry, 1999
- Chevrolet Impala, 2008
- Toyota Corolla, 1997
- Dodge Caravan, 2005
- Chevrolet Malibu, 2005
Minnesota Auto Insurance Plan
The Minnesota Automobile Insurance Plan (MNAIP) aims to help people who have been denied insurance from a private company. Oftentimes, this occurs because the person is considered a high-risk driver. If a driver qualifies for MNAIP, he or she will be automatically placed with an insurance company. All Minnesota auto insurance providers must participate in MNAIP. They must also give their applicants an acceptance or denial within 30 business days of the application dates. If a company denies a claim, it must provide a legitimate reason.