Getting Low Cost Car Insurance Rates in Minnesota

Reader’s Question:

I just wanna make sure I do everything I can to be able to have low cost car insurance. What is the best tactic for me to choose the right car insurance for me here in Minnesota?

Jason

St. Paul, MN

You can definitely save a lot of money if you purchase only the minimum required in the state of Minnesota. However, least amount of coverage required may not be an adequate amount to protect your assets. Rather than considering the price of the coverage, a better tactic for you to choose the right car insurance in Minnesota is to take into account the kind and amount of coverage you have for the price that you pay. You should know first the level of coverage that you should have and realize that having adequate amount of coverage won’t put you in the risk or using your personal assets to cover for medical bills and other expenditures.

If you already have an idea on the amount of coverage that you should have, you must then think about how much you could pay for your car insurance.

1. One of the money-saving options that you have is to raise your deductible amount as high as you can. You only pay in the event that an accident occurs and that your insurance company pays the claim. This alone will have a huge impact on your annual premiums.

2. Keeping a low annual mileage on your vehicle could also cut down the cost of your car insurance.  This coverage is refered to as “limited use” coverage, so ask your agent about it.

3. Maintaining a spotless driving record and installing anti-theft and other safety devices in your vehicle could also definitely reduce the car insurance premiums that you pay.

4. Cleaning up your credit report. A low credit score and bad marks on your credit report will cause your annual insurance premium to be higher than a driver with a better credit score and report.

5. Lastly, comparing car insurance quotes from different Minnesota car insurance companies would provide you the best alternatives for your coverage and at the same time, help you pick the best value for your money.  Don’t just settle on the first quote from the first company you contact. Get their quotes and use them against the next company you call until you find the best rate with the best coverage.

Is Auto Insurance Required for Vehicle Registration in Minnesota?

Reader’s Question:

I will be buying my very first car soon. Is auto insurance required to have the car registered in Minnesota?

Jonathan

Minneapolis, MN

Every car owner is required to obtain auto insurance coverage based on the financial responsibility laws of Minnesota. Likewise, for a car to be registered with the Department of Motor Vehicles (DMV), a proof of insurance needs to be presented for the car to be registered. Failure of any motorist to obtain auto insurance coverage may result to a driver’s license suspension. Moreover, thousands of dollars will have to be paid for statutory fines, attorney’s fees and driver’s license reinstatement fees. The car in question may also end up in the state impound.

With all these possible consequences, it is more practical to just comply with the auto insurance requirements. Not only will you be protecting your property and sanity, but other people’s safety, as well.

The State of Minnesota strictly adheres to the no-fault policy. This law has been adopted to cut back on lawsuits and extend prompt and necessary financial assistance to persons involved in a traffic accident. This law dictates that the insurer will be the one shouldering all the costs for medical treatment of its policyholder. It is for this reason that Personal Injury Protection (PIP) needs to be in effect at the time of the accident. All drivers also need to purchase the minimum liability auto insurance. This kicks in when the insured is liable and the other driver’s coverage was not enough to pay for medical care and repairs to the damaged vehicle.