Car Insurance Minnesota
TAILED SOLUTIONS TO YOUR DRIVING NEEDS
Welcome to First State Insurance Agency Southwest
At First State Insurance Agency Southwest, we specialize in finding reliable car insurance in Minnesota which the residents can rely on for financial protection. Whether you’re driving in Minneapolis, St. Paul, or on the highways near our Worthington or Pipestone locations, we’re here to help you navigate the road to protection.
What is covered by Auto Insurance in Minnesota?
Liability Coverage
Protects you financially if you're at fault in an accident that causes injury or property damage to others.
Collision & Comprehensive
Covers repairs or replacement of your vehicle due to accidents, theft, vandalism, or natural events like hail or fire.
Uninsured/Underinsured Motorist
Helps cover costs if you're hit by a driver with little or no insurance.
AVOID OUT-OF-POCKET SURPRISES
Understanding The Minnesota Difference (No-Fault Law)
Minnesota is a “No-Fault” state which means each driver’s insurance policy covers for medical bills and lost wages after an accident, regardless of whose fault it is. This is a critical detail that every Minnesota driver needs to understand.
Your auto insurance policy is required to include Personal Injury Protection (PIP) which will pay for your:
- Medical expenses
- Loss of income
- Other essential services (e.g., in-home care, rehabilitation, etc.)
YOU DESERVE ONLY THE BEST
Why choose First State Insurance Agency for your Auto Insurance in MN?
When you choose us as your auto insurance agency, you are choosing an independent local partner—not a giant national call center.
- Local Expertise: With offices in Worthington and Pipestone, we understand Minnesota’s specific risks and mandatory insurance laws better than any out-of-state provider.
- Multiple Options: We don’t represent a single insurer. We compare policies from many leading carriers to find you the best rate for your Minnesota auto insurance.
- Personalized Service: We take the time to review your policy limits and identify any potential gaps, ensuring you get the right coverage level—not just the lowest price.
KNOW WHAT YOU NEED
Car Insurance Requirements in Minnesota
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Bodily injury liability Helps cover expenses related to the injury or death of another driver or a pedestrian when an accident is your fault. |
$30,000 limit per person/$60,000 limit per accident |
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Property damage liability Helps cover expenses related to the damage of another person’s property — like vehicles, homes, buildings and other structures — when an accident is your fault. |
$10,000 limit |
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Uninsured motorist Helps cover your medical expenses if you’re in an accident, the other driver is at fault and doesn’t have any insurance. |
$25,000 per person / $50,000 per accident |
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Underinsured motorist Helps cover your medical expenses if you’re in an accident, the other driver is at fault and doesn’t have enough liability insurance. |
$25,000 limit per person/$50,000 limit per accident |
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Personal injury protection If you and/or your passengers are hurt in an accident, this helps cover medical or funeral expenses. |
$40,000 limit per person, per accident |
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Collision Helps cover expenses to repair or replace your vehicle that’s been damaged in an accident. |
Not required unless the vehicle is leased or financed |
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Comprehensive Helps cover expenses to repair or replace your vehicle that’s been stolen or damaged by things like storms or vandalism. |
Not required unless the vehicle is leased or financed |
FAQs
How does the “No Fault” state system affect my claim?
The “No-Fault” state system means each driver’s insurance policy covers for medical bills and lost wages after an accident, regardless of whose fault it is. This system in Minnesota affects your claim by requiring your own Personal Injury Protection (PIP) coverage to pay for your medical expenses, lost wages, and replacement services following an accident, regardless of who was at fault. This structure ensures that you receive prompt financial assistance for your injuries without waiting for an official fault determination. However, this system also places limitations on your ability to sue the at-fault driver for non-economic damages (such as pain and suffering), requiring your injuries to meet a certain severe threshold—like permanent injury, significant medical expenses, or disability lasting 60 days—before you can pursue a tort claim against the other driver.
What factors affect my car insurance premium costs?
Your car insurance premium in Minnesota is calculated based on a combination of factors related to your personal risk profile, your vehicle, and your policy choices. Key factors include your driving record and claims history, as tickets, violations, or past at-fault accidents signal higher risk. Your age and driving experience also play a significant role. The type of vehicle you drive matters as well, as cars with high repair costs or theft rates cost more to insure. Finally, your location (down to your zip code), annual mileage, and even your credit-based insurance score can influence rates, in addition to the specific coverage limits and deductibles you select, since higher limits and lower deductibles increase the premium.
How costly is car insurance in Minnesota?
The average cost for a full coverage car insurance policy in Minnesota generally ranges from approximately $1,700 to $2,600 annually, which amounts to a monthly cost of about $142 to $213. Meanwhile, for drivers opting for minimum coverage, the average annual cost is around $400 to $700, or about $33 to $59 per month. These rates are estimated averages so it is recommended to consult with an expert insurance agency for an exact quote.
How can I lower my auto insurance costs in Minnesota?
To lower your auto insurance costs in Minnesota, the most effective strategies are to shop around and compare quotes from multiple companies, as rates vary significantly. Try to take full advantage of discounts for which you qualify, such as bundling your auto and home policies, having a clean driving record, being a good student, or for drivers aged 55 and older, completing a state-approved defensive driving course which can earn a 10% discount for three years. Additionally, you can adjust your policy by choosing higher deductibles for collision and comprehensive coverage to lower your premium, or by reducing coverage on older vehicles that are worth less than ten times the cost of the premium.
What happens if I lend my car to a friend? Does my policy still cover them?
In most cases, your car insurance policy will cover a friend who occasionally drives your car with your permission under what is known as “permissive use,”. Auto insurance typically follows the vehicle, not the driver. Your policy would generally act as the primary coverage for damages or injuries they cause in an accident, up to your coverage limits; however, if your friend is driving your car regularly, using it for business (like ridesharing), is unlicensed, is specifically excluded from your policy, or if the resulting damages exceed your policy limits, coverage could be denied or your friend’s personal insurance may act as secondary coverage.