Auto Insurance Coverage Explained

Basic Auto Insurance Is Required By Minnesota Law

It gives you some financial protection in the event of an accident. Learn more about the types of coverages available.

Minnesota provides excellent opportunities for scenic drives and recreation year-round. Keep in mind: these opportunities pose driving hazards, especially in the frigid winter temperatures. You need to know how to drive in ice and snow, and you need the proper auto coverage — wherever you decide to go by car. All Things Insurance makes it easy to get a quote.

The Basics of Auto Insurance: What Is It?

Auto insurance is a contract between you and an insurance carrier that protects you from financial loss if an accident or theft happens. In exchange for paying a premium, the insurer agrees to cover your losses as stated in your policy.

If you own a vehicle and you’re a law-abiding citizen, chances are you have car insurance. While it’s a very common type of insurance, there are still some confusing terms that come with it. Don’t worry — we’ll explain the basic auto coverages in simple terms.

Auto Coverages: An Overview

Many different types of coverage are available to help suit your needs. But there are three main types of auto coverages that you can get with most providers: liability, collision, and comprehensive.

Liability Coverage

Liability is the state of being legally responsible for something. 

Liability coverage protects you if you cause damage to someone else and/or their things. It can help cover somebody’s medical bills or what it costs to repair their car and property damaged from the wreck.

In Minnesota, the law requires specific minimum coverages on your auto insurance:

  • Bodily Injury Liability: $30,000/person and $60,000/accident
  • Property Damage Liability: $10,000
  • Personal Injury Protection (PIP): $40,000
  • Uninsured Motorist Coverage: $30,000/person and $60,000/accident
  • Underinsured Motorist Coverage: Same as uninsured.

It’s often smart to carry more than the required amount, as this will lower your chance of incurring high out-of-pocket expenses later on.

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Collision Coverage

Collision coverage is just like it sounds. It covers your vehicle if you hit another car, person, or non-moving object (like a rock, lightpost, etc.).

Specifically, it helps cover the car repair costs no matter who’s at fault.

Note: Collision doesn’t cover you if you hit an animal or if your vehicle breaks down because it’s old.

Comprehensive Coverage

When insurance coverage is comprehensive it means widespread, complete, or all-inclusive. This coverage protects your vehicle from things besides liability and collision, such as:

  • Fire
  • Theft
  • Vandalism 
  • Severe weather
  • Hitting a deer, etc.

Comprehensive auto coverage is usually sold with collision coverage. They’re ok on their own but better together!

For more on the auto coverage requirements in Minnesota, call (763) 645-5450. 

All Things Insurance Can Help

An All Things Insurance agent can answer your auto coverage questions and help you protect what matters most.

We serve all of the North Star State, including communities like Saint Paul, Bloomington, Victoria, North Oaks, Minnetrista, Medina, Waconia, and Chanhassen.