Best Car Insurance in Minnesota

No, you cannot insure a car with a salvage title in Minnesota. Salvage vehicles are cars that have been declared a total loss, meaning they're too damaged to be worth repairing and cannot be driven legally. As a result, no legitimate car insurance company writes policies for them.

Although insurance companies in Minnesota won't insure a car with a current salvage title, you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. If it's declared safe to drive, the DMV will issue the car a rebuilt title. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a rebuilt title.

Keep in mind that some insurers will only sell liability insurance for rebuilt cars, meaning that they won't pay for any physical damage to the vehicle. Even if you are able to get collision and comprehensive insurance, your policy may not cover the full value of the car if it's totaled again.

Insurance companies in Minnesota have 45 business days to settle a claim after it is filed. Minnesota insurance companies also have specific timeframes in which they must acknowledge the claim and then decide whether or not to accept it, before paying out the final settlement.

Insurance Claim Timeline in Minnesota

• 10 business days to acknowledge the claim and send the policyholder instructions and paperwork. This includes proof-of-loss forms, which serve as a sworn statement from the policyholder about the scope of the damage or injuries.
• 30 business days to make a decision on the claim after receiving completed proof-of-loss forms.
• 5 business days to make the final payment if the claim is approved.

There are several factors that can affect exactly how long it takes for an insurance company to settle a claim. For example, claims involving serious or multiple injuries take longer to settle. Additionally, poor communication between the driver, insurance company, and insurance adjuster can slow down the process.

Still, you are entitled to an efficient settlement. If you think that your insurance company is violating the law or operating unethically, you can file a “bad faith” lawsuit, which may award you the original settlement amount with added interest and penalties.

You can get car insurance discounts in Minnesota based on how you drive, the car you own, and your relationship with your insurance company. In Minnesota, car insurance companies are allowed to consider factors like marital status, driving experience, and insurance history when setting premiums. That means there are also discounts available for being married or driving safely over time. In Minnesota, insurance companies cannot use your employment or residential status to determine rates. That means you can't get discounts for owning a home or being affiliated with certain employers.

Almost anyone can get a discount on car insurance in Minnesota because most insurance companies make it easy to qualify for a variety of savings. Minnesota insurers typically offer discounts that fall into one of three categories—policy discounts, driver discounts, and vehicle discounts.

Policy discounts typically reward customer behavior that is desirable to the insurance company. For example, most Minnesota drivers can save by registering for paperless billing or getting both home and auto policies from the same company. Driver discounts are available to Minnesota residents who are lower-risk to insure, like those with clean driving records. And vehicle discounts help drivers save if their car has certain safety features or anti-theft systems.

Car Insurance Discounts in Minnesota

Remember, discounts vary among different insurance companies, so it's always best to contact the provider directly to determine which discounts you qualify for.

Yes, Minnesota is a no-fault state. Minnesota being “no-fault” means each driver's insurance pays for their own medical bills no matter who causes a collision. Minnesota drivers purchase personal injury protection (PIP) coverage for that purpose.

Drivers in no-fault states such as Minnesota can't sue other motorists as easily as drivers in so-called tort states, where fault matters, either. Specifically, Minnesota has contributory negligence laws. If you are even 1% at fault for an accident, you can't sue the other driver for damages.

Why You Should Care That Minnesota Is A No-Fault State

No-fault means faster payouts. Police and your insurance company don't need to investigate the accident's cause before you can get paid for your medical bills. As a result, your bills get paid more quickly than they would in a tort state, where fault for the accident determines the payout.

Another benefit of no-fault insurance is the knowledge that you're covered no matter who causes an accident. That can make driving in Minnesota a bit less nerve-wracking.   

No-fault insurance also has downsides, unfortunately. The most obvious is higher premiums. States with no-fault insurance struggle with high rates of fraudulent claims, which raise the costs of insurance for everyone.

No-fault rules don't apply to property damage, either. One or both drivers will be at fault after a collision, no matter which state you live in. The police and your insurance company consider Minnesota's laws, the circumstances of the collision, and drivers' testimonies before deciding who is at fault.

Minnesota vs Other No-Fault States

All states have a statute of limitations for lawsuits after a car accident. In Minnesota, the statute of limitations is quite long: six years. That means you have six years after your accident to file a lawsuit for medical damages.

Minnesota no-fault insurance data

All states have a statute of limitations for lawsuits after a car accident. In Minnesota, the statute of limitations is quite long: six years. That means you have six years after your accident to file a lawsuit for medical damages.

Minnesota no-fault insurance data

No-fault insurance can make the process of recovering from a collision easier for everyone involved, but it's generally more expensive. Buy as much coverage as you can afford to protect yourself in the event of a costly collision.

Full coverage insurance in Minnesota is usually defined as a policy that provides more than the state's minimum liability coverage, which is $30,000 in bodily injury coverage per person, up to $60,000 per accident, and $10,000 in property damage coverage. Full coverage in Minnesota also includes optional collision and comprehensive insurance. As a result, full coverage insurance costs an average of $1,320 per year in Minnesota, while a state minimum policy costs $579.

If you can't afford to repair or replace your car after an accident, collision and comprehensive are important coverage types—even if they're not required. Collision insurance covers repair or replacement costs if you are in an accident, drive into an object, or flip your car. Comprehensive insurance covers repair or replacement costs if your car is damaged by falling objects, natural disasters, floods, fires, theft, vandalism, or animals. Full coverage insurance costs an average of $1,320 per year in Minnesota, while a state minimum policy costs $579. Lenders usually require collision and comprehensive in addition to the insurance you must have under Minnesota law when you finance a car.

Most people should also choose higher liability coverage limits than what is required by Minnesota law. If you cause an accident and your liability limits don't cover the whole bill, you are still personally responsible for the rest. In the end, “full coverage” means having the right amount of coverage to protect your assets in a worst-case scenario.