Automobile Insurance Options

Q. WHAT AUTOMOBILE INSURANCE IS AVAILABLE TO COVER MY PERSONAL INJURY CLAIMS?

A. In Minnesota, the law says that if you own a motor vehicle, you must buy insurance for that vehicle. Automobile insurance companies are required to provide minimum coverage of four different types when you purchase insurance.

NO-FAULT INSURANCE/PERSONAL INJURY PROTECTION (PIP)

This covers up to $20,000 in medical expenses and up to $20,000 in wage loss and replacement services, regardless of fault. If you have more than one car, for only a few dollars, you can buy stacking which allows you to recover No-Fault benefits from two cars which doubles the amount of medical and wage loss coverage you can receive.

Liability insurance covers the damages incurred by occupants of the other vehicle, if you are at fault. The minimal amount you can buy is $30,000.

If you are so unfortunate as to be hit by a motorist who is uninsured, your own uninsured motorist coverage pays for your damages. Your recovery is limited by the amount of coverage you purchased. The smallest amount you may buy is $25,000.

If your injuries are because of the fault of another driver and your damages exceed the other driver's liability coverage ($25,000 minimum by state law), you are allowed to claim the excess damages on your own underinsured coverage.

This pays for damages to the other car and the owner's personal property if you are found to be the cause of the accident.

This pays for damages to your car no matter who is at fault. You are not required by law to purchase collision coverage on your own automobile. However, if the "at fault" driver has no automobile insurance and you have not purchased collision coverage, you will have to pay for your repairs or replacement vehicle out of your own pocket.

This pays for damage to your auto caused by fire, theft, vandalism and other perils.