What Does “Full Coverage” Car Insurance Include in Minnesota?
If you’re shopping for car insurance in Minnesota, you’ve probably heard the term “full coverage.” But what does it actually mean? Contrary to what many believe, “full coverage” isn’t a specific type of insurance policy but rather a combination of coverages that protect you, your vehicle, and others in an accident. Here’s a breakdown of what’s typically included in a Minnesota Car Insurance Policy that carries “Full Coverage”
1. Liability Coverage (Required by Law)
Minnesota law mandates that all drivers carry a minimum amount of liability coverage. This will help to cover damages and injuries to others if you’re at fault in an accident. In reality, these liability limits are way too low to adequately protect you if you do cause damage to someone or something else. We recommend much higher higher liability limits.
- Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees for injuries you cause to others.
- Minimum required: $30,000 per person / $60,000 per accident
- Property Damage Liability: Covers damage to another person’s vehicle or property.
- Minimum required: $10,000 per accident
2. Personal Injury Protection (PIP) – Required
This medical coverage will pay for the first $20,000 of your medical bills regardless of who is at fault in an accident.
- Minimum required: $40,000 per person per accident
- $20,000 for medical expenses
- $20,000 for lost wages and other costs
3. Uninsured/Underinsured Motorist Coverage – Required
If you’re in an accident with a driver who has no insurance or not enough insurance, this coverage will help cover your medical expenses if you are injured in an accident. It is estimated that roughly 17% of drivers in the state of Minnesota are uninsured.
- Minimum required: $25,000 per person / $50,000 per accident
4. Collision Coverage – Optional but Recommended
Collision coverage helps pay to repair or replace your vehicle if it’s damaged in an accident, regardless of who is at fault. If you have a loan or lease, your lender will likely require this coverage. This coverage will include a Deductible. The Collision Deductible is the amount that you pay from a claim. The car insurance company will pay the remainder of the claim.
5. Comprehensive Coverage – Optional but Recommended
Comprehensive coverage pays for non-collision damages to your car, such as:
- Theft
- Vandalism
- Fire
- Natural disasters (hail, storms, flooding)
- Animal collisions (such as hitting a deer, which is common in Minnesota)
6. Other Optional Coverages
Depending on your needs, you can enhance your full coverage policy with additional options, such as:
- Roadside Assistance: Helps if you get a flat tire, run out of gas, or need a tow.
- Rental Car Reimbursement: Covers the cost of a rental car while your vehicle is being repaired.
- Gap Insurance: If your car is totaled, gap insurance covers the difference between what you owe on your loan and the car’s depreciated value.
Do You Really Need Full Coverage?
While Minnesota law only requires liability, PIP, and uninsured/underinsured motorist coverage, full coverage (including comprehensive and collision) provides peace of mind and financial protection. If you have a newer vehicle, a loan, or simply want to avoid out-of-pocket expenses after an accident, full coverage is worth considering.
Get the Right Coverage for Your Needs
At Ameriguard Insurance, we help Minnesota drivers find the right coverage at the best rates. Contact us today at 763-767-0522 for a personalized quote and ensure you have the protection you need on the road.