Like many other states, Minnesota requires drivers to purchase liability insurance. This type of liability insurance protects the other driver when the insured driver is at fault. In Minnesota, drivers must also purchase uninsured and underinsured motorist insurance, often abbreviated to UM/UMI.
Understanding your coverage
When you are in a collision with a driver who doesn’t have car insurance or have enough of it to pay for your accident-related expenses, uninsured and underinsured motorist insurance comes into play. This means that while they were at fault for the accident, they don’t have liability coverage for your needs. Unfortunately, there are many insured or underinsured drivers in Minnesota. This additional coverage protects your financial interests after a car accident.
The required minimum uninsured and underinsured motorist coverage in Minnesota is $25,000 per person and $50,000 per accident. When this coverage applies, the insurance company covers injuries to yourself and/or your passengers. This is a minimum coverage requirement. Some policies will also cover the expenses related to property damage to your vehicle. They may also cover lost wages and other expenses related to the accident.
The state has a minimum requirement, but there are also plans with additional coverage. Many insurance experts recommend that drivers consider their overall net worth when comparing different insurance plans. Consider how much the plan costs, what your budget is and how much coverage you may need if you get into an accident. For instance, if you are driving an expensive vehicle, consider whether the UM/UMI coverage pays for property damage and to what amount. Choose the plan that meets the minimum legal requirements that you feel most comfortable with.