You Need Coverage For Your Vehicle in Minnesota
If you own a motor vehicle, you must have insurance on it. But too many people don’t understand how to buy this coverage.
Liability Coverage–A Must in Minnesota!
Liability insurance coverage is required by law in the State of Minnesota (and most other states) if your vehicle is going to be used on public roadways. It protects your assets if you are held liable for property damage or personal injury. This is not the time to be stingy because it could bite you later if you need to pay out and don’t have adequate coverage.
The Levels of Liability Coverage
Liability coverage levels are shown in three numbers, such as 50/100/50 or 250/500/250. These numbers signify the limits for individual bodily injury liability / total bodily injury liability/property damage liability.
Think of it this way. If your liability limits are 100/300/100 limits, your coverage tops out at:
- $100,000 for bodily injuries per person you injure in a crash.
- $300,000 total for all bodily injuries you cause in a collision.
- $100,000 total for property damage you cause in a crash. This includes cars, structures (like houses), and objects (like mailboxes).
The amount of liability coverage you have should exceed your net worth. So when choosing liability car insurance coverage, you’ll want to ensure the highest number or the total bodily injury limit should be equal to or greater than the value of your house and total savings combined.
Minnesota is a “no-fault” state. This means that when injuries occur, each driver in a crash files a claim with their own insurance company to pay for them. Beyond the state’s PIP limit, the at-fault driver’s liability insurance must cover the rest.
Do You Need Full Coverage Auto Insurance?
The state requires liability because it protects the other drivers on the road, their passengers, and their property. But it doesn’t cover you, your car, or your passengers. So who pays for those bills? This is where “full coverage” car insurance comes in. A full coverage policy includes liability coverage plus comprehensive and collision coverages. To have full coverage, you purchase liability and add collision and comprehensive coverage in the amounts you want.
Comprehensive vs. Collision Coverage
Collision Insurance Covers:
- Damage to your car in an accident you cause.
- Damage to your vehicle if you hit property, such as a fence or pole.
- Damage to your car if someone else hits you. In this case, you could also make a claim against the other driver’s liability insurance.
Comprehensive Insurance Covers
- The value of your car if it’s stolen and not recovered
- Tornado Damage
- Hail Damage
- Flood Damage
- Fire Damage
- Damage from Falling Objects
- Damage Due to an Explosion
- Crashes with an Animal, Such as a Deer
- Damage due to a Riot or Civil Disturbance
Information You Will Want To Have On Hand
When you talk to an insurance agent to get a quote for car insurance, you will want to have a few pieces of information on hand to help the agent give you an accurate quote.
You will want to give them the information for everyone you want to be included in your policy. This includes:
- Date of Birth
- Driver’s License
- Marital Status
You will also want to give them your driving history, including all claims and moving violations you’ve had over the past five years and any completed driving courses.
You will need the vehicle information for each car covered under your policy.
- Purchase Date
- Vehicle Identification Number (VIN)
If you haven’t purchased the car yet, the mileage, make, model, and year of the vehicle you will be buying will suffice.
Some insurers won’t cover you unless you can prove a continuous auto insurance coverage history. If a household member is not included on your policy, you will need to prove they have coverage elsewhere. So you will be asked the name of your current or previous insurance companies and those of other household members.
How to Find the Best Rates
When comparing policy quotes, you must look at policies for the same type and amount of coverage to gauge which policy will offer you the best price.
- The same levels of liability and uninsured/underinsured motorist protection
- The same deductibles for collision and comprehensive coverages (if you are buying them)
- The same drivers and cars
- Any discounts for which you are eligible
The Best Way to Find the Best Insurance For You
At Hermann Insurance Inc, our independent insurance agents can help you sort through the numbers and match you with a policy that meets your needs.