Minnesota car insurance: no-fault benefits explained

How Minnesota no-fault benefits work

After a crash in Minnesota, your own policy pays your economic losses first, whoever caused the accident. State law calls this coverage basic economic loss benefits; most people know it as personal injury protection. The minimum is $40,000 per person, split into two equal parts:

Income loss benefits replace 85% of the gross income you lose because you cannot work, up to $500 a week. Replacement services pay for help with things you would normally do yourself, such as household tasks, while you recover.

For example, if a driver earning $800 a week before taxes cannot work, 85% of that pay is more than the weekly cap of $500, so the benefit stops at the cap. Higher earners recover a smaller share of their pay this way, and the benefit also counts toward the combined $20,000 limit.

When you can sue after a Minnesota crash

No-fault trades quick payment for limits on lawsuits. Under state law, you can claim damages for pain, suffering and other noneconomic losses from the at-fault driver only if:

• your medical expenses (with some adjustments) are more than $4,000, or
• the injury results in permanent disfigurement, permanent injury or death, or
• you are disabled for 60 days or more.

This kind of rule is called a tort threshold. It does not stop claims for vehicle damage, which follow ordinary fault rules. If someone else caused the crash, their property damage liability pays for your car, or your own collision coverage pays and your insurer can seek repayment. Our what to do after a crash guide covers the first steps.

Required coverage checklist for Minnesota

Minnesota requires five separate coverages. Before you sign, check that your declarations page shows each of these:

1. Bodily injury liability of at least $30,000 per person and $60,000 per accident.
2. Property damage liability of at least $10,000.
3. Basic economic loss benefits of at least $40,000 per person.
4. Uninsured motorist coverage of at least $25,000 per person and $50,000 per accident.
5. Underinsured motorist coverage at the same minimums, as a separate coverage.

Collision and comprehensive are optional under state law but usually required by a lender. Whether insurers must offer medical payments coverage in Minnesota could not be confirmed on an official source, so ask the Minnesota Department of Commerce or a licensed agent. The coverage checklist helps you decide what else to add.

Minnesota costs compared with the U.S.

Minnesota drivers spent an average of $1,103.05 per insured vehicle in 2023, below the national average of $1,281. The average premium for a policy with liability, collision and comprehensive was $1,223.48, also below the U.S. average of $1,438, or about $102 a month.

About 11.3% of Minnesota drivers were uninsured in 2023, below the national rate of 15.4%. Even so, Minnesota requires both uninsured and underinsured coverage, so every policyholder has some protection against drivers with no insurance or low limits.

Rural roads and safety

IIHS counted 477 crash deaths in Minnesota in 2024, or 8.2 per 100,000 people, below the national rate of 11.5 per 100,000 people. The rate per miles driven was 0.81 per 100 million miles, compared with 1.19 per 100 million miles nationally.

Rural roads tell a different story: 58% of Minnesota crash deaths happened on rural roads, above the U.S. share of 41%. Wildlife and winter weather are common hazards on rural roads, which is why many drivers keep comprehensive coverage for deer strikes and storm damage. The winter driving guide covers what a policy pays for in snow and ice.

Neighboring states handle injuries differently. Wisconsin and Iowa are at-fault states, while North Dakota also uses no-fault.