Minnesota Auto Insurance Requirements 2025 | No-Fault Guide

Minnesota requires 30/60/10 liability plus mandatory PIP and uninsured motorist coverage. Learn the state's no-fault rules and why minimums may not be enough.

Quick Answer: Minnesota Minimum Auto Insurance Requirements

Yes, Minnesota requires all drivers to carry liability insurance. Minnesota is a no-fault state, meaning your own insurance pays your medical bills regardless of who caused the accident.

Coverage Type	Minimum Required
Bodily Injury (per person)	$30,000
Bodily Injury (per accident)	$60,000
Property Damage	$10,000
Personal Injury Protection (PIP)	$40,000
Uninsured Motorist (UM) Bodily Injury	$25,000/$50,000

This is commonly written as 30/60/10 plus mandatory PIP and UM coverage.

Penalties for driving uninsured:

First offense: $200 minimum fine + license suspension
Vehicle plates impounded
SR-22 filing may be required

Minnesota No-Fault Insurance Explained

Minnesota is one of 12 no-fault states in the U.S. This fundamentally changes how car insurance works after an accident.

What No-Fault Means:

In a no-fault state:

Your own insurance pays YOUR medical bills (through PIP)
You cannot sue the other driver unless injuries are "serious"
Fault still matters for property damage
Insurance rates still increase if you cause accidents

Benefits of no-fault:

Faster medical payment (no waiting for fault determination)
Lower legal costs (fewer lawsuits)
Guaranteed coverage for your medical bills

Drawbacks:

Higher insurance costs (everyone pays for their own injuries)
Limited ability to sue for pain and suffering
PIP coverage required (adds $300-$800/year to premiums)

Minnesota Minimum Coverage Requirements

Bodily Injury Liability: $30,000/$60,000

What it covers:

Other drivers' medical bills if you cause an accident
Passengers in other vehicles
Pedestrians or cyclists you injure
Legal defense if you're sued
Pain and suffering claims (if injuries meet threshold)

Limits explained:

$30,000 per person: Maximum paid to one injured person
$60,000 per accident: Total maximum for all injuries in one accident

When it applies:

Only when you're at fault
Only for injuries meeting Minnesota's serious injury threshold
Only after PIP benefits are exhausted

Important: In no-fault Minnesota, bodily injury liability is rarely used unless injuries are "serious" (defined by law).

Property Damage Liability: $10,000

What it covers:

Damage to other vehicles
Damage to buildings, fences, guardrails
Damage to personal property in other vehicles

Minnesota's $10,000 limit is the lowest in the nation and dangerously inadequate.

Why it's not enough:

Average new car costs $48,000+
Average repair after moderate accident: $5,000-$15,000
If you total a vehicle worth $40,000, you're personally liable for $30,000

Recommendation: Carry at least $50,000 property damage coverage. The cost difference is only $100-$200/year.

Personal Injury Protection (PIP): $40,000

Minnesota requires $40,000 in PIP coverage—one of the highest PIP requirements in the nation.

What PIP covers:

Medical expenses: Up to $20,000
Lost wages: Up to $20,000
Replacement services: Up to $20,000 (housework, childcare)
Funeral expenses: Up to $2,000

Total maximum: $40,000 per person

Who PIP covers:

You (the policyholder)
Your passengers
Your family members in any vehicle
Pedestrians struck by your vehicle

Important features:

Pays immediately (within 30 days of claim)
No deductible required
Applies regardless of fault
Primary coverage (pays before health insurance)

PIP deductible options:

No deductible (most common)
$250 deductible (saves ~$50/year)
$500 deductible (saves ~$100/year)

Uninsured Motorist (UM) Coverage: $25,000/$50,000

Minnesota is one of few states that requires uninsured motorist bodily injury coverage.

What UM covers:

Your injuries if hit by an uninsured driver
Your injuries in a hit-and-run accident
Your injuries if hit by a driver with insufficient coverage
Your passengers' injuries

Why Minnesota requires this:

Approximately 12% of Minnesota drivers are uninsured
Hit-and-run accidents are common in urban areas
Ensures you have coverage even when other driver doesn't

Minimum required:

$25,000 per person
$50,000 per accident

Recommended: Match your bodily injury limits (e.g., if you have 100/300 liability, get 100/300 UM)

Who Must Carry Insurance in Minnesota?

Required:

✅ All registered vehicle owners

Cars, trucks, SUVs, vans, minivans
Must maintain continuous coverage
Electronic monitoring detects lapses

✅ Motorcycles

Same liability limits (30/60/10)
PIP not required for motorcycles
UM coverage required

✅ Rental cars

Rental companies must provide minimum coverage
Your personal policy may extend to rentals

✅ Out-of-state vehicles (30+ days)

Must meet Minnesota requirements
Must register vehicle in Minnesota

Exemptions:

❌ Self-insurance

Must prove financial responsibility of $60,000
Requires Minnesota Department of Public Safety approval
Very rare—not practical for most individuals

❌ Stored vehicles

Must surrender plates to county registrar
Cannot be driven or parked on public roads
No insurance required while in storage

Minnesota's Serious Injury Threshold

Minnesota's no-fault law limits your right to sue. You can only sue for pain and suffering if injuries meet the serious injury threshold.

Serious Injuries (Can Sue):

Death
Permanent serious disfigurement
Permanent loss of bodily function
Permanent disability (60+ days)
Medical expenses exceeding $4,000

If injuries don't meet threshold: You cannot sue for pain and suffering. Your only compensation is through PIP (up to $40,000).

If injuries meet threshold: You can file a lawsuit against the at-fault driver for:

Pain and suffering
Emotional distress
Loss of consortium (family relationships)
Damages exceeding PIP limits

Penalties for Driving Without Insurance

First Offense:

Fines:

$200 minimum fine
Up to $1,000 maximum
Court costs and fees ($100-$300)

License consequences:

Driver's license suspended until proof of insurance
Vehicle registration suspended
License plates impounded by law enforcement

Reinstatement requirements:

Provide proof of insurance
Pay reinstatement fee ($30)
Pay impoundment fee ($50-$100)
May require SR-22 filing

Total cost: $500-$1,500

Second Offense (Within 5 Years):

Increased penalties:

$400-$1,500 fine
Minimum 30-day license suspension
Vehicle plates impounded for 60 days
SR-22 required

Criminal charge:

Misdemeanor on your record
Up to 90 days in jail (rarely imposed)
Permanent criminal record

Third Offense:

Severe consequences:

$1,000-$3,000 fine
License revoked (not just suspended)
Must petition for license reinstatement
SR-22 required for multiple years
Vehicle may be forfeited to the state
Gross misdemeanor charge

At-Fault Accident Without Insurance

If you cause an accident while uninsured:

Personal liability: You're personally responsible for ALL damages
No PIP coverage: You pay your own medical bills
No legal defense: You pay for your own attorney
Wage garnishment: Up to 25% of your wages can be garnished
Asset seizure: Home, vehicles, savings accounts at risk
License suspended: Until all damages are paid or settlement reached
Future SR-22: Required for minimum 3 years

Typical costs:

Medical bills for others: $50,000-$250,000+
Vehicle damage: $15,000-$100,000+
Legal defense: $20,000-$75,000
Your own medical bills: $10,000-$100,000+
Total: $100,000-$500,000+

One accident can financially ruin you for life.

Why Minnesota Minimums Aren't Enough

Scenario: Winter Accident on I-35

Accident: You slide on ice and cause a 4-vehicle pileup.

Damages:

Vehicle 1 (SUV): $45,000 (totaled)
Vehicle 2 (sedan): $15,000 (major damage)
Vehicle 3 (truck): $30,000 (totaled)
Two injured drivers: $80,000 medical bills
Lost wages: $40,000
Total: $210,000

Your insurance pays (30/60/10 minimums):

Property damage: $10,000 (your maximum)
Bodily injury: $60,000 (your maximum)
Total: $70,000

You owe personally: $140,000

Consequences:

Lawsuit for $140,000
Wage garnishment for 10+ years
Potential bankruptcy
Home equity at risk

Minnesota Property Damage is Critically Low

Vehicle Type	Average Value	MN Minimum	Your Liability
Used sedan	$15,000	$10,000	-$5,000
New SUV	$48,000	$10,000	-$38,000
Luxury car	$75,000	$10,000	-$65,000
Work truck	$55,000	$10,000	-$45,000

Minnesota has the lowest property damage minimum in the U.S. If you total even a moderately priced vehicle, you're personally liable for tens of thousands.

Recommended Coverage Levels

Minimum Acceptable (Better Than State Minimums):

Bodily Injury: 50/100 (not much more expensive)
Property Damage: $50,000 (critical upgrade)
PIP: $40,000 (state minimum)
UM/UIM: 50/100 (match bodily injury)
Cost increase: $250-$600/year

This should be your absolute minimum. $50,000 property damage is essential.

Good Coverage (Recommended for Most):

Bodily Injury: 100/300
Property Damage: $100,000
PIP: $40,000 (or higher if affordable)
UM/UIM: 100/300
Collision: $500-$1,000 deductible
Comprehensive: $500 deductible
Cost: $1,200-$2,500/year (varies by driver)

Excellent Coverage (Best Protection):

Bodily Injury: 250/500 or 500/500
Property Damage: $100,000
PIP: $100,000+ (optional higher limits available)
UM/UIM: 250/500 or 500/500
Umbrella Policy: $1M-$2M
Cost: $1,800-$3,500/year + $300-$500 for umbrella

Umbrella policies are cheap: $1M in extra liability coverage costs only $300-$400/year.

Optional Coverage You Should Consider

Underinsured Motorist (UIM) Coverage

Minnesota requires uninsured motorist coverage but not underinsured motorist. You should add it.

Underinsured motorist covers:

Injuries when other driver has insurance but not enough
Gap between their coverage and your damages
Your passengers

Example: Other driver has 30/60 liability. Your injuries cost $100,000. UIM pays the $40,000 gap.

Cost: $50-$150/year

Worth it? Absolutely. Many Minnesota drivers carry only minimum coverage.

Collision Coverage

Covers: Damage to your vehicle after collision, regardless of fault

Required if:

You have a loan or lease
Vehicle worth $5,000+

Deductible options:

$250 (highest premiums)
$500 (balanced)
$1,000 (lowest premiums)

Cost: $400-$1,200/year depending on vehicle value

Comprehensive Coverage

Critical in Minnesota due to weather/wildlife.

Covers:

Deer strikes (extremely common)
Hail damage
Theft and vandalism
Falling tree branches
Broken windshields from road salt/debris

Minnesota-specific risks:

10,000+ deer collisions annually
Severe hailstorms in spring/summer
Tree damage from winter storms
High vehicle theft rates in Twin Cities

Cost: $200-$600/year

Worth it? Yes, especially for comprehensive ($200-$400/year). Deer collisions average $4,000-$8,000 in damage.

Rental Reimbursement

Covers: Rental car costs while your vehicle is being repaired

Coverage: $30-$50/day for 30 days

Cost: $30-$60/year

Worth it? Yes. Rentals cost $50-$80/day. This pays for itself if you need 2-3 days of rental.

Minnesota Insurance Costs

Average Annual Premiums by City:

City	State Minimum	100/300/100 + Full	Above Average Cost?
Minneapolis	$950-$1,500	$1,800-$3,200	Yes (theft, density)
St. Paul	$900-$1,400	$1,700-$3,000	Yes
Rochester	$700-$1,100	$1,300-$2,200	Average
Duluth	$650-$1,000	$1,200-$2,000	Below average
Bloomington	$850-$1,300	$1,600-$2,700	Slightly above
Rural Minnesota	$600-$950	$1,100-$1,900	Below average

Why Twin Cities Are More Expensive:

High traffic density = more accidents
Higher theft and vandalism rates
More uninsured drivers
Higher medical costs
Comprehensive costs more (hail/theft)

Minnesota-Specific Insurance Tips

Winter Driving and Claims

Minnesota winters are brutal: Ice, snow, and freezing temperatures lead to thousands of accidents.

Insurance considerations:

Comprehensive is critical: Covers weather damage (hail, ice, falling branches)
Collision is essential: Covers winter slide-offs and multi-vehicle pileups
Roadside assistance: Critical for winter breakdowns

Tips to lower rates:

Take defensive driving course
Install winter tires (some insurers offer discounts)
Have remote start (prevents theft, reduces claims)

Deer Collisions

Minnesota has 10,000+ reported deer collisions annually.

Peak months:

October-November (mating season)
May-June (fawning season)

Insurance coverage:

Covered under comprehensive (not collision)
Average damage: $4,000-$8,000
Total vehicles in serious strikes

Without comprehensive: You pay out-of-pocket.

FAQ

What happens if I let my insurance lapse in Minnesota?

Immediate consequences:

DMV receives notification from your insurer
License and registration suspended
Law enforcement can impound your plates during traffic stop
$200+ fine plus reinstatement fees
SR-22 may be required

Timeline:

Lapse detected: 1-7 days
Suspension notice mailed: 10-15 days
License suspended: 30 days from lapse

Reinstatement:

Get insurance first
Pay reinstatement fee ($30)
Provide proof to DVS
If plates impounded, retrieve them ($50-$100 fee)

Can I reject PIP coverage in Minnesota?

No. PIP coverage is mandatory in Minnesota. You cannot waive or reject it.

Minimum required: $40,000

You can buy more: $80,000, $100,000, or unlimited PIP available

Cost: $400-$800/year for $40,000 minimum PIP

Do I need insurance for a snowmobile or ATV?

Snowmobiles:

Liability insurance not legally required
Strongly recommended ($100-$300/year)
Required by many snowmobile clubs and trail systems

ATVs:

Not required for off-road use
Required if driven on public roads (rare)
Homeowners insurance may not cover—get separate policy

Recommendation: Get coverage. Snowmobile/ATV accidents can cause serious injuries and $50,000+ in damages.

What if I'm hit by an uninsured driver in Minnesota?

Your coverage pays:

PIP: Your medical bills up to $40,000
UM: Additional medical costs beyond PIP (up to your UM limits)
Collision: Your vehicle damage (if you have collision coverage)

If you don't have collision:

You pay for your own vehicle repairs
Can sue the uninsured driver (but they likely have no assets)

Why UM is critical: 12% of Minnesota drivers are uninsured. You need protection.

Does Minnesota require SR-22 insurance?

SR-22 is not insurance—it's a certificate proving you carry minimum coverage.

Required for:

DUI/DWI conviction
Driving without insurance
Multiple traffic violations
At-fault accident while uninsured
License reinstatement after suspension

How it works:

Buy regular auto insurance
Request SR-22 from insurer ($25-$50 fee)
Insurer files with Minnesota DVS electronically
Maintain for 1-3 years (depends on violation)

Cost impact: Insurance rates increase 50-100% with SR-22.

Can I use my Minnesota insurance in other states?

Yes. Minnesota insurance is accepted in all 50 states.

Important:

Your coverage travels with you
Some states have higher minimums (your policy still applies)
If you move permanently, you'll need insurance meeting new state's requirements

Is Minnesota a no-fault or at-fault state?

Minnesota is a no-fault state with serious injury threshold.

What this means:

Your insurance (PIP) pays your medical bills regardless of fault
You can only sue if injuries are "serious" ($4,000+ medical bills, permanent disability, etc.)
Fault still matters for property damage
Fault still affects your insurance rates

Not pure no-fault: You can sue for serious injuries, unlike some states with absolute no-fault laws.

How do I lower my insurance costs in Minnesota?

Proven strategies:

Shop around annually (quotes vary $500-$1,500)
Bundle home + auto (saves 15-25%)
Increase deductibles ($250→$1,000 saves $200-$400/year)
Take defensive driving course (saves 5-10%)
Maintain good credit (affects rates in Minnesota)
Ask about discounts:
- Multi-vehicle discount
- Good student discount
- Low mileage discount
- Safety features discount (anti-theft, airbags)
Consider usage-based insurance (Snapshot, DriveWise—saves 10-30% for safe drivers)

Summary: Minnesota Auto Insurance Requirements

State-Required Minimums (30/60/10 + PIP + UM):

✅ $30,000 bodily injury per person
✅ $60,000 bodily injury per accident
✅ $10,000 property damage (critically low!)
✅ $40,000 Personal Injury Protection (PIP) mandatory
✅ $25,000/$50,000 Uninsured Motorist mandatory

Critical Upgrades:

Increase property damage to $50,000 minimum ($100,000 recommended)
Add underinsured motorist coverage
Carry collision + comprehensive (winter weather, deer)

Minnesota is No-Fault:

Your PIP pays your medical bills (regardless of fault)
Can only sue for serious injuries ($4,000+ medical or permanent injury)
Higher insurance costs than tort states

Key Facts:

12% of drivers are uninsured—UM coverage is essential
10,000+ deer collisions annually—comprehensive is critical
Property damage minimum ($10,000) is lowest in nation
Twin Cities rates 30-50% higher than rural areas

Penalties:

First offense: $200+ fine + license suspension + plate impoundment
Second offense: $400-$1,500 + misdemeanor charge
SR-22 required for repeat violations

Bottom line: Minnesota's property damage minimum is dangerously low. Carry at least 50/100/50 with full coverage if vehicle is worth $5,000+.

Important Disclaimer

This guide provides general information about Minnesota auto insurance requirements based on publicly available sources. This is not legal advice. Insurance requirements can change, and individual circumstances vary. Always verify current requirements with the Minnesota Department of Public Safety, Driver and Vehicle Services (DVS), and consult with a licensed insurance professional for advice specific to your situation.

Last verified: December 2025 Sources: Minnesota Department of Public Safety, Minnesota Statutes § 65B.49, Minnesota Driver and Vehicle Services (DVS)