Facts and Tips in Obtaining Auto Insurance in Minnesota

Under Minnesota laws, a licensed vehicle must have an auto insurance that features basic coverage, which include personal injury protection, liability, underinsured motorist, and uninsured motorist. There are also supplemental coverage that you can also obtain, though this would certainly translate to higher premiums cost. Such is what happens when you acquire your vehicle through loan and the lender requires your to have comprehensive and collision coverage in your auto insurance policy.

Know that the insurance company, under state law, can elect to cancel your policies under certain allowed circumstances, such as nonpayment or occurrence of drunk driving. The coverage of auto insurance also extends to immediate members of your family who have no insurance policies of their own. If you give permission for an uninsured friend to use your vehicle and that persons got involved in an accident, your policy will also provide coverage for that event.

The State of Minnesota also requires auto insurance policy to provide minimum coverage for damages made to rental cars. In fact, whenever a car is rented within the state, a notice of coverage must be included in the rental contract. The state also implements a no-fault system on auto insurance policies. This means coverage must be given for medical expenses incurred following injuries caused by automobile accidents. The primary aim of this law is to assure each accident victim of prompt medical attention without having the hassle of establishing the fault first. The no-fault system is actually what is termed as the personal injury protection coverage in the policy. Under this coverage, policyholders are compensated for medical costs, wage loss, and even funeral expenses on the event of death. The minimum no fault coverage is $40,000 and some policies may even carry a higher amount and, of course, a higher premium.

In Minnesota, as in most states in the country, the rates of insurance policies are based on certain factors. One of these factors is age, as teenagers and senior citizens are imposed with high premiums due to the higher risks of accidents associated with these particular age groups. Luxury vehicles also carry higher premiums and so are vehicles typically driven in traffic-prone areas. If you have several accidents during the months prior to your insurance application, there is also a great possibility of higher charges in form of surcharges. In this case, insurance providers are required by law to provide you with the Surcharge Disclosure Sheet detailing the charges imposed.

Know also that there are also several opportunities for you to enjoy discounts in your auto insurance policy. Some companies would offer discounts if you purchased other forms of insurance policies with them. Purchase and installation of anti-theft devices in your vehicles could also mean additional savings. Some insurance providers also provide discounts to nonsmokers. The best way to obtain these discounts would be shop first and determine which insurance policy would provide the best value for your money. The state allows insurance companies to cancel a policy within 59 days of issuance for nonpayment, misinformation and misrepresentation of facts, has health problems that diminish their driving capability, defective vehicles, and nondisclosure of needed and complete information. The insurer, however, is required to notify the policyholder on the reasons for cancellation.

Know that there are also instances that insurance companies are allowed not to renew a certain auto insurance policy, such as leaving the scene of the accident without making any report, using the vehicle to commit felony crimes, driving of stolen vehicles, reckless driving, and driving under influence. Should your insurance policy be cancelled or you simply cannot afford a policy from private insurer, you can always approach the Minnesota Automobile Insurance Plan for assistance.

We help our Minnesota customers in Minneapolis, St. Paul, Rochester, Duluth, Bloomington, Brooklyn Park, Plymouth, St. Cloud, Eagan, Maple Grove, Coon Rapids, MN and other cities in The North Star State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Minnesota insurance agent and broker network, you can compare rates quickly from the comfort of your home.

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