If you’re a Minnesota resident looking for insurance, you’re in the right place. We’ve compiled all the info you need to help you find home, auto, life, health or long term care insurance right here on this page.
We recommend you read it over, contact the Minnesota Department of Commerce at 651-296-4026 with any questions, and let us help you find the coverage you need today.
Auto Insurance
Auto insurance in this state is a competitive market, with about 200 companies competing for your business. Still, it costs significantly more in Minnesota than in neighboring states. This is due, in part, to the state’s requirement that residents carry all four of the following types of insurance coverage:
- Personal Injury Protection (PIP): also called “no-fault” insurance. Designed to pay medical expenses and lost earnings for a driver or passenger injured in or by your car, regardless of who is at fault. Minimum required is $40,000 per person per accident.
- Bodily Injury Liability: protects you against claims alleging your negligence or fault in an accident. State-mandated minimums are $30,000 per person, $60,000 per accident and $10,000 for property damage.
- Uninsured Motorist: pays for your medical expenses after you have exhausted your PIP benefits and when the other driver is at fault but is not insured. Required minimums are $25,000 per person and $50,000 per accident.
- Underinsured Motorist: covers personal injury or property damage caused by an underinsured driver. At least $25,000 per person and $50,000 per accident is required.
Please note: If you still owe money on your car, your lender will also require you to carry comprehensive and collision coverage, which protect your own car against damage.
The price you pay for car insurance depends on:
- Coverages you add above state minimums
- Your age and gender
- The type of vehicle you drive
- How many miles you drive annually
- Where you live
- Your driving record
- Discounts applied to your premiums
- Surcharges due to traffic violations or accidents
- How high you set your deductibles
You can offset some of these costs by comparison shopping between more than one insurer; setting your deductibles as high as you can afford; and asking for all possible discounts.
Health Insurance
Depending on your health status, you may be denied or given limitations on what your health insurance plan might cover. However, Minnesota does require all health plans to cover certain benefits, such as mammograms and prostate exams.
Be sure to ask your agent about other mandated benefits, and as always, review your policy for a clear outline of your benefits.
Your state has taken a number of provisions to make sure that residents like you are protected from any injustices:
- The guaranteed issue protects you if you are an employer purchasing small group insurance. It ensures that you will not be turned down on account of the age or health status of your group.
- Nondiscrimination protects you under a group plan by prohibiting denied or limited coverage because of your health status.
- Most health insurance policies in your state are guaranteed renewable. This means that your policy cannot be cancelled if you fall ill.
If you are financially unable to purchase medical insurance, there are still options available for you:
- If you earn a low or modest income, you may be eligible for Minnesota Medicaid, which provides free or subsidized health care for pregnant women, families, the disabled and the elderly.
- If you are unable to afford health insurance but meet other requirements, you may be eligible for discounted coverage through MinnesotaCare. MinnesotaCare is also available for families and children.
- If you feel you are at risk for cancer, you may receive screening and treatment through the Sage Screening Program. The Sage Screening Program does offer free breast and cervical cancer screening for women who qualify.
Home Insurance
Buying a house is one of the biggest purchases you’ll make—and you probably want to make sure it’s insured accordingly. Homeowners insurance can do exactly that.
Home insurance in this state is a considered a “package policy”:
(1) It protects you from legal damages if someone is injured on your property
(2) It protects you from financial losses if your home and/or possessions are damaged or destroyed
Many mortgage lenders require that you have some form of home insurance in order to protect their investment. According to the Insurance Information Institute (I.I.I) there are two main types of home insurance policies.
HO-2 is a basic policy that protects you against 16 different perils, including:
- Smoke, fire and lightning
- Wind and hail
- Vandalism and theft
- Water damage from home appliances
An HO-3 policy covers you from “all” perils, except for those named in the policy. Common exclusions from HO-3 policies include:
- Flood
- Earthquake
- Landslide, mudslide and sinkhole
- Nuclear accident
Important note: Home insurance does not protect you from flood damage. If you’re interested in purchasing flood coverage, make sure you ask your insurance agent, or apply with the National Flood Insurance Program (NFIP).
While finding a good policy is important, there are a few ways you can keep your costs down:
- Shop around. Prices differ from one insurer to the next, so comparing free quotes is the way to go.
- Increase your deductible. Increasing the amount you pay for a claim out-of-pocket (before the insurer starts paying) automatically lowers your premiums. Just make sure you choose a deductible you can afford in case you have to file a claim.
- Ask about discounts. Many insurers offer significant discounts if you have a home alarm system or insure your car with the same company. Ask your agent what other discounts they offer and see if you qualify.
- Make some home improvements. Updating your home or making improvements can help your home better withstand tumultuous weather. Your insurer will take this into consideration while determining your premium.
Life Insurance
Life insurance policies are sold by insurance companies to help meet the financial needs of your loved ones in the event of your death.
Many experts suggest using this formula to give a ballpark figure of your life insurance needs:
Short term expenses + Long term expenses – Resources = How much life insurance you need.
Short-term expenses can be broken down into three categories:
- Final Expenses — funeral, burial and attorney costs.
- Outstanding Debts — credit card debt, college or auto loans.
- Emergency Expenses — medical emergencies, repair to home or car.
Long-term expenses include your mortgage and college tuition for your dependants.
Once you’ve tallied your income needs, you can figure out what resources you already have to put toward them. Make sure to include any extra cash, savings, Social Security and pension.
Finally, subtract these resources from your total expenses. This will give you an approximate amount of insurance suitable for you and your family.