In Minnesota, every driver is required to have liability insurance. Purchasing liability insurance automatically provides “no-fault” benefits for you, which include medical expenses, wage loss, replacement services and out-of-pocket expenses such as mileage for transportation to medical appointments.
A driver can also purchase collision insurance that would cover damage to your car, regardless of fault.
If you cause an accident, your liability insurance will pay for the damage. If another driver causes damage to you or your car, the other driver’s insurance will pay for the damage caused to you (except that your no-fault coverage will pay the benefits described above).
When you purchase collision insurance, you also have an option to purchase coverage that will pay for your losses if the other driver does not have insurance (uninsured motorist coverage). You can also purchase insurance for damages that exceed the liability coverage that the other driver has (underinsured motorist coverage).
It is highly recommended that you maintain high limits on your liability coverage, your uninsured motorist coverage, and your underinsured. The difference in price between the minimum coverage and coverage that is sufficient to cover most accidents is worth paying.
You should also make sure an insurance company does not sell you “split coverage,” such as 100,000 per person and 300,000 per accident (a 100-300 policy). You should purchase a 300-300 policy because most crashes involve 1 person in your vehicle. Our office recommends a 500-500 policy.
If you are in an accident, make sure you do everything possible to preserve evidence, including taking photographs, physically inspecting driver’s licenses and insurance cards and calling the police. If you are injured in an accident, you should call an attorney as soon as possible after the accident. Generally, you will want to talk to an attorney before you talk to any insurance adjustors. Our office provides free legal consultations for most accidents.
The information in this post is not intended as legal advice. You should consult with an attorney for specific questions about this subject matter.