Minnesota uses the no fault insurance system as a means of providing financial surety to all motorists who keep their policies valid and up-to-date. If a road traffic accident occurs, the driver deemed to be responsible will not have all claims from other drivers settled on their own policy. Instead, each person involved in an accident actually claims through their own insurer irrespective of who was at fault. This system was brought into place as a means of cutting down on expensive legal cases and effectively removes the right of one driver to sue another unless extenuating circumstances are involved.
The cost of auto insurance is still slightly higher than the national US average although new figures released have shown a drop of 10% on all policies purchased in Minnesota during the first quarter of 2010. The average price of a policy is now $1,591.
There is a minimum level of auto insurance coverage required when driving in Minnesota and this is laid out as follows:
- $30,000 worth of bodily liability coverage per person
- $60,000 worth of bodily liability coverage per accident
- $10,000 of property damage cover
- $25,000 worth of protection against uninsured or underinsured motorists per person
- $50,000 worth of protection against uninsured or underinsured motorists per accident
- $40,000 of personal injury protection
The early part of 2010 shows that there has never been a better time to purchase auto insurance in Minnesota and resident of the North Star State are enjoying the benefits of shopping online for policies in a bid to make even greater savings.