Personal Injury Protection

• All Minnesota drivers must purchase personal injury protection (PIP) insurance to cover medical costs, lost wages and other non-medical expenses in the event of an accident that causes injury. The person will receive benefits even if he caused the accident. The state requires a minimum coverage of $40,000, with half going toward medical bills and half toward other expenses.
  
  

Liability Requirements

• Liability insurance will cover costs resulting from any claims made by the other driver when the accident was the driver's fault. State minimums include $30,000 for injury to one party and $60,000 to cover two or more injured people. Additionally, liability insurance must provide at least $10,000 for property damage or damage to the other party's car.
  
  

Underinsured Requirements

• While many states make underinsured insurance coverage optional, Minnesota requires it. Underinsured coverage will pay for medical costs incurred beyond the amount of the PIP coverage if the other driver was found to have caused the accident and cannot cover the costs with her liability insurance. This coverage will pay only for medical claims normally covered by the person's regular policy. Minimum coverage must include $25,000 for injury to one person and $50,000 for injury to two or more people.
  
  

Uninsured Requirements

• The state also requires drivers to carry insurance to cover costs resulting from an accident in which the other driver did not have any insurance and was found at fault. This coverage will pay costs of medical coverage should medical issues exhaust the PIP benefits. Minimum requirements are the same as underinsured requirements.
  
  

Leased and Financed Vehicles

• In addition to the four types of insurance above, anyone who is financing a car with an auto loan or leasing a car must take out comprehensive and collision insurance. Comprehensive insurance covers damage resulting from theft, wildlife, weather and related conditions. Collision insurance will pay for car repair resulting from a collision with another vehicle. If a person fails to obtain these types of coverage, the legal owner of the car--the bank or dealer--can buy the insurance and force the driver to pay the premium. This can cost a lot of money and does not include any provisions for the four other types of coverage every driver in the state must have.