Minnesota Auto Insurance Laws

Features

All Minnesota auto insurance policies that include comprehensive coverage must include coverage to repair or replace broken auto window glass. Liability coverage cannot be cancelled or reduced during the effective period of any policy unless the premiums are not paid or there was material information not disclosed or required information not given on the application for insurance. There are also six other conditions under which such changes can be made.

Benefits

Under state law, discounts must be provided of at least 10 percent for insured individuals who are at least 55-years-old and complete an accident prevention course. Insurers are required to give at least a 5 percent premium reduction when the covered vehicle has an anti-theft protection device installed. Every accident, either involving a motor vehicle or motorcycle in Minnesota, which causes an injury, entitles the person or persons who are injured to basic economic loss benefits. These benefits are spelled out in minimum amounts in the state law.

Considerations

Every owner of an auto or other vehicle that is required to be licensed in Minnesota has to have reparation security, that is, a way to insure against financial loss from their liability. This can be accomplished either through an insurance policy, or, by following very specific requirements, through self-insurance. The self-insurance involves proving there are sufficient deposits or other commitments that would be equal to a comparable insurance policy and hefty application and renewal fees.

Special Provisions

In the case of a divorce, if one spouse was insured under a policy with the other spouse for at least six months before a divorce, and follows some other provisions, an insurance company has to issue new auto insurance to the former spouse of an insured party. Insurance companies offering discounts to university and college students must offer the same discount to students in technical colleges. Insured limousines have to have insurance for at least $300,000 per accident for each limousine.

Premium Increases

Before issuing an auto policy and accepting the first premium, the insurance company must disclose to the buyer what the company policy is regarding surcharges or premium increases. This disclosure statement cannot be changed without prior notice to the people insured under the policy. Unless the plan permits, changes in premiums cannot be applied to accidents taking place before the change. Traffic violations will not be charged to a driver unless that person is convicted of the offense or has their license revoked because of it.