Shopping for Auto Insurance

You can't control every factor that determines what you pay for auto insurance, but being proactive and informed can save you money and ensure that your assets are protected in case of an accident or loss.

Determine what kind of coverage you need and call several agents for a quote. Be sure to ask what the surcharge policy is for accidents and traffic violations. Be sure to mention if your car has safety or anti-theft devices and ask about discounts that might available.

Keep in mind that the minimum amount of coverage might not be enough to protect your assets. Talk with your agent or company to determine the right amount of coverage for you.

Types of Coverage
Saving Money
Determining your rate
Vicarious Liability Limits

Types of Coverage

Minnesota requires four different types of coverage.
- Personal Injury Protection (PIP): coverage for medical expenses, lost wages, and replacement services.
- Liability: helps cover injury and property damage expenses that occur when an accident is considered to be your fault.
- Underinsured coverage: pays for medical claims when the other driver is held responsible for the accident and does not have enough liability to cover the claims.
- Uninsured coverage: pays for your medical expenses after you have used all of your PIP benefits and when the other driver is held responsible for the accident but is not covered by insurance.
Optional Coverage
- Collision covers damage to your vehicle when you are involved in an accident with another vehicle or object.
- Comprehensive covers physical damage that is not the result of a collision. This includes losses from fire, theft, hail, falling objects, vandalism, animal collisions and floods.
5 Tips to reduce your rate
- Shop around: compare prices from several companies and get in the habit of checking again every couple of years - particularly if you experience a major life change such as getting married or adding teen drivers to your policy.
- Ask for higher deductibles: deductibles represent the amount you pay before your policy kicks in. A higher deductible can lower your premiums substantially.
- Reduce coverage on older cars: it may not make sense to keep optional coverage like collision or comprehensive.
- Take advantage of discounts: many insurance company offer discounts that may include purchasing other types of insurance from the same company, having a good driving record, or installing safety and security features.
- Maintain good credit: while driving habits are the best way to keep your insurance costs low, repairing a damaged credit rating can help you on and off the road.
Determining your rate

There are a number of factors that affect the insurance premiums you pay and how your rates are determined will vary by company.

Generally, the following factors will help determine how much you pay for coverage:
- Additional option coverage such as collision and comprehensive coverage will increase the cost of your policy.
- Demographic factors such as age, gender, and marital status.
- The type of vehicle your drive (make, model, and year) and your driving habits such as how many miles you drive and where you drive.
- Driving record, credit history, and history of prior claims.
- Discounts for multiple lines of insurance with the same company.
- Surcharges for traffic violations of accidents. How and when a surcharge is applied will vary by company, but your insurer must provide you with a "Surcharge Disclosure Sheet" when you apply for the policy.
- The amount of the deductible (how much you pay before your insurance company pays).

Vicarious Liability Limits

Minnesota Statute 65B.49 Biennial Limits requires the Commissioner of Commerce to adjust the Vicarious Liability Limits Applied to Owners of Rented Motor Vehicles every other year. Here are the updated numbers, to be effective 1/1/2025.

Vicarious Liability Limits Applied to Owners of Rented Motor Vehicles

Date Effective	Bodily Injury for one person	Bodily Injury per accident	Property Damage
1/1/1995	100,000	300,000	50,000
1/1/1997	100,000	305,000	50,000
1/1/1999	105,000	320,000	50,000
1/1/2001	110,000	335,000	55,000
1/1/2003	115,000	350,000	55,000
1/1/2005	120,000	370,000	60,000
1/1/2007	130,000	395,000	65,000
1/1/2009	140,000	430,000	70,000
1/1/2011	140,000	425,000	70,000
1/1/2013	150,000	450,000	75,000
1/1/2015	155,000	465,000	75,000
1/1/2017	155,000	470,000	75,000
1/1/2019	165,000	495,000	80,000
1/1/2021	170,000	510,000	85,000
1/1/2023	190,000	580,000	95,000
1/1/2025	205,000	615,000	100,000

The dollar amounts stated in this paragraph shall be adjusted for inflation based upon the consumer price index for all urban consumers, known as the CPI-U, published by the United States Bureau of Labor Statistics. The dollar amounts stated in this paragraph are based upon the value of that index for July 1995, which is the reference base index for purposes of this paragraph. The dollar amounts in this paragraph shall change effective January 1 of each odd-numbered year based upon the percentage difference between the index for July of the preceding year and the reference base index, calculated to the nearest whole percentage point. The commissioner shall announce and publish, on or before September 30 of the preceding year, the changes in the dollar amounts required by this paragraph to take effect on January 1 of each odd-numbered year. The commissioner shall use the most recent revision of the July index available as of September 1. Changes in the dollar amounts must be in increments of $5,000, and no change shall be made in a dollar amount until the change in the index requires at least a $5,000 change.