One of the most expensive aspects of owning a car is the car insurance premiums. Unfortunately, a car accident can lead to an increase in your car insurance premiums.
According to The Zebra, car insurance premiums in Minnesota can increase as much as 40% or more after an at-fault accident. Forbes Advisor states the national average rate increase after an accident involving injuries is around 47%. The increase in car insurance rates after an accident in Minneapolis depends on several factors.
Continue reading to learn more about how car insurance works in Minnesota and what factors can cause your costs to increase.
Understanding Car Insurance in Minnesota
Minnesota is a no-fault state for car insurance. However, unlike some no-fault states, Minnesota also requires drivers to purchase liability insurance.
The minimum coverage for car insurance in Minnesota is:
- $40,000 in personal injury protection (PIP) coverage per person, per accident (not required for motorcycles)
- $30,000 in liability insurance for injuries to one person ($60,000 per accident for injuries to two or more people)
- $10,000 in liability insurance for physical property damage, including to vehicles
- $25,000 ($50,000 per accident) of uninsured motorist coverage
- $25,000 ($50,000 per accident) of underinsured motorist coverage
Drivers typically file insurance claims with their PIP provider regardless of who caused the accident.
Minnesota law allows an accident victim to file a claim against an at-fault driver for economic damages not covered by PIP and non-economic damages if either:
- The victim incurs at least $4,000 in medical bills or
- The victim sustains a permanent injury, 60 days or more of disability, or disfigurement.
Filing a claim against the driver who caused the accident can provide compensation for pain and suffering damages, which are not available through a no-fault insurance claim.
Factors That Affect Car Insurance After an Accident in Minnesota
Car insurance premiums may not increase immediately after an accident. Many insurance companies adjust insurance rates when the policy renews.
Factors that can affect your car insurance costs include:
- Your prior accidents and violations. If you have a clean driving record, your rates might not increase as much as if you have multiple accidents and/or traffic tickets on your record.
- Your insurance company. Some insurance companies offer “accident forgiveness” for a first-time accident. Each insurance company sets its insurance rates and policies for increases.
- The severity of the accident and the cost of the claim. Accidents with high property damage and personal injuries often result in a more substantial increase in insurance rates.
- Specific state laws governing how accidents impact insurance rates.
- Some insurance companies assess surcharges to drivers who are at fault for causing the accident.
- Whether you are entirely at fault for causing the accident or partially to blame.
- Your age and experience driving. Younger drivers may be viewed as a higher risk, especially after an at-fault accident.
- The make and model of your vehicle. Some vehicles are more expensive to repair, which can lead to increased insurance rates after an accident.
- Your geographic location. Where you live can also impact insurance rate increases.
Even if you did not cause an accident, your insurance rates could increase depending on other factors. You can discuss your coverage with your insurance agent to determine if options are available to save money on car insurance premiums.
Get Help from Our Team
A Minneapolis car accident lawyer can review your case to advise you of your rights during a free consultation. If the other driver caused the crash, you may be entitled to compensation for damages not covered by your PIP insurance.
Contact the Minnesota Car Accident Law Firm of Hall Law Personal Injury Attorneys For Help Today
For more information, please contact an experienced car accident lawyer at Hall Law Personal Injury Attorneys to schedule a free initial consultation today. We have three convenient locations in Minnesota, including Minneapolis, St. Cloud, and Edina.
We proudly serve Hennepin County, Stearns County, and its surrounding areas:
Hall Law Personal Injury Attorneys – Minneapolis
825 Nicollet Mall, Suite 615
Minneapolis, MN 55402
(800) 292-1979
Find us with our GeoCoordinates: 44.97514068188609, -93.27349979814521
Hall Law Personal Injury Attorneys – St. Cloud
1010 W St Germain St # 320
St Cloud, MN 56301
(320) 255-1000
Find us with our GeoCoordinates: 45.55903612908877, -94.16420517306956
Hall Law Personal Injury Attorneys – Edina
5200 Willson Rd #203
Edina, MN 55424
(952) 697-5560
Find us with our GeoCoordinates: 44.90963991439301, -93.34937342327198
