Minimum car insurance requirements in Minnesota

Minnesota law is specific about car insurance. It names the coverages every driver has to carry and sets a minimum dollar amount for each one. Because Minnesota is a no-fault state, those rules look different from most of the country: your own policy pays your medical bills first, whatever caused the crash, and you're required to carry protection that many states treat as optional.

Here's what the law actually requires, with the statute behind each number.

Who has to carry coverage

Every owner of a motor vehicle that's registered, licensed, or principally garaged in Minnesota has to maintain what the statute calls a "plan of reparation security" for as long as the vehicle is in use.¹ In plain terms, that means an auto insurance policy meeting the state minimums. The obligation runs with the vehicle, so it applies whether you drive daily or the car sits for most of the winter.

Motorcycles fall under a separate provision. Their owners must carry liability coverage, but they aren't required to buy the no-fault medical coverage that cars must have.¹

The coverages Minnesota requires

A legal Minnesota policy bundles several coverages together. Leave any of them out and the policy doesn't meet the law.

Liability: 30/60/10

Liability coverage pays for the injuries and property damage you cause to other people. Minnesota sets the floor at:²

• $30,000 for bodily injury to one person in a single accident
• $60,000 for total bodily injury when two or more people are hurt in the same accident
• $10,000 for damage to other people's property

The shorthand for that combination is "30/60/10." The property damage figure is the one worth a second look. Ten thousand dollars covers a minor fender bender, but it won't replace a newer vehicle you total, and it does nothing for the resale value a repaired car loses afterward. That lost value is its own claim you may be able to bring against the driver who hit you.

No-fault (PIP): $40,000

This is the coverage that sets Minnesota apart. Every car policy has to include personal injury protection, which the statute calls "basic economic loss benefits." The minimum is $40,000 per person, and it splits in two: $20,000 for medical expenses, and $20,000 for everything else, meaning lost income, replacement services (hiring help for tasks you can't handle while injured), and funeral or survivor's benefits.³ Funeral costs inside that second $20,000 are capped at $5,000.³

PIP pays these benefits no matter who was at fault, which is the core idea of a no-fault system. You file with your own insurer and collect without first proving the other driver caused the crash.

Uninsured and underinsured motorist: 25/50

Many states make this optional. Minnesota does not. Every policy has to include both uninsured motorist and underinsured motorist coverage, each at a minimum of $25,000 per person and $50,000 per accident.² Uninsured motorist coverage steps in when the driver who hit you carried no insurance at all. Underinsured coverage fills the gap when they had a policy but not enough to cover what they did to you. Since both are mandatory here, it's worth checking your declarations page to confirm they're actually listed.

How no-fault pays, and when it runs late

Because your own insurer pays first, the timing rules carry real weight. Once you give the insurer reasonable proof of the fact and amount of your loss, PIP benefits are overdue if they aren't paid within 30 days.⁴ An insurer that batches claims gets a short accumulation window, but 30 days is the general rule. Anything paid after the deadline carries simple interest at 15 percent a year.⁴ That interest gives the insurer a reason to move, and it gives you something concrete to point to if yours stalls.

When you can step outside no-fault and sue

No-fault benefits cover your economic losses. They don't pay for pain and suffering. To bring a claim against the at-fault driver for those non-economic damages, your injuries have to clear a threshold written into the statute. You qualify if any one of these is true:⁵

• Your reasonable medical expenses come to more than $4,000
• The injury disables you for 60 days or more, meaning you can't do substantially all of your usual daily activities
• You suffer a permanent injury
• You suffer permanent disfigurement
• The crash results in death

Clear the threshold and you can pursue the at-fault driver for the full range of damages, pain and suffering included. Fall short and you're generally held to what no-fault covers. If your injuries are serious enough that this line matters, that's the point where it pays to talk with a lawyer.

What driving uninsured costs you

Minnesota treats this as a crime, not a ticket, and two separate statutes apply.

Failing to produce proof of insurance when a peace officer asks for it is a misdemeanor, carrying a fine of at least $200.⁶ You're expected to keep proof in the vehicle and hand it over on demand. Letting the required coverage actually lapse is the more serious problem. Driving without insurance is a misdemeanor on a first offense, and the consequences build from there.⁷

On conviction, the commissioner of public safety can revoke your driver's license for up to 12 months, and if you own the vehicle, its registration for up to 12 months too.⁷ Before you get either back, you have to file a certificate from an insurer confirming you've obtained the coverage the law requires.⁷ The charge rises to a gross misdemeanor if you collect repeat convictions within ten years, or if you drive uninsured and cause a crash that kills someone or leaves them with substantial bodily harm.⁷

Why the minimum may not be enough

The state minimums are a legal floor, not financial advice. One serious injury can run well past a $30,000 liability limit, and once that limit is gone, the injured person can pursue your personal assets for the rest. The same exposure applies to the property damage and UM/UIM minimums. The Minnesota Department of Commerce, which regulates auto insurers in the state, is the place to start with a coverage question or a dispute with your carrier.⁸

Meeting the numbers above keeps you legal. Whether they're enough for your situation is a separate question, and a better one to answer before you're the person filing the claim.

This article is general information, not legal advice.

Sources

1. Minnesota Statutes § 65B.48, Maintenance of plan of reparation security. https://www.revisor.mn.gov/statutes/cite/65B.48

2. Minnesota Statutes § 65B.49, Required coverages (subd. 3, residual liability; subd. 3a, uninsured and underinsured motorist). https://www.revisor.mn.gov/statutes/cite/65B.49

3. Minnesota Statutes § 65B.44, Basic economic loss benefits. https://www.revisor.mn.gov/statutes/cite/65B.44

4. Minnesota Statutes § 65B.54, Timing of payment of benefits. https://www.revisor.mn.gov/statutes/cite/65B.54

5. Minnesota Statutes § 65B.51, Tort threshold (subd. 3). https://www.revisor.mn.gov/statutes/cite/65B.51

6. Minnesota Statutes § 169.791, Criminal penalty for failure to produce proof of insurance. https://www.revisor.mn.gov/statutes/cite/169.791

7. Minnesota Statutes § 169.797, Penalties for failure to provide vehicle insurance. https://www.revisor.mn.gov/statutes/cite/169.797

8. Minnesota Department of Commerce, Auto Insurance. https://mn.gov/commerce/insurance/auto/