Minnesota car insurance buyers are required to have the following types of coverage in place to drive legally in the state:
Personal Injury Protection (PIP) is also known as no-fault insurance. This type of protection compensates the insured for medical bills and lost wages, within the limits set out in the policy. It also pays for replacement services, such as lawn care or housekeeping.
Liability coverage compensates the other driver and his or her passengers for injuries and damages sustained in the accident. It pays for medical and rehabilitation expenses, as well as lost wages. The liability portion of the policy also pays for the cost of repairs to the other driver’s car and any public property damaged in the accident.
Uninsured Motorist protection pays out when the at-fault driver in an accident does not have coverage. Even though all drivers in the state are required by law to have insurance coverage in place, it doesn’t mean that all of the comply. This part of the policy pays out up to the policy limit that you choose.
Underinsured Motorist coverage pays out in addition to your PIP coverage and comes into play when the at-fault driver does not have enough insurance coverage to pay for the damages he or she has caused in an accident. The other driver’s liability coverage is used first (up to his or her policy limit) and then your Uninsured Motorist protection is used to pay the balance owing, up to the policy limit you choose.