Insurance

Minnesota requires all drivers to get auto insurance, which will help pay for medical costs and damage if you’re in a crash. As a new teen driver with an instructional permit, you won’t need your own auto insurance coverage until you start driving without supervision. Check with your family’s auto insurance agent to find out when your coverage should begin.

Saving Money on Car Insurance

Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.

  • Raise deductibles to lower premiums. Ask your auto insurance representative how much you could save by increasing your deductible. If you file a claim after raising your deductible, you’ll pay a larger share of the costs.
  • Investigate discounts. Many insurers offer discounts for students with a “B” or higher grade average and for teens who complete driver education or defensive driving courses.
  • Share vehicles. How you classify your new driver—as the main or an occasional driver of one vehicle, for example, will affect auto insurance premiums, so consider sharing vehicles.
  • Just say “no” to sports cars and SUVs. TThe kind of car your teen drives can impact safety. Many experts agree that mid-sized sedans are the best choice for teens. Small cars don’t offer as much protection in crashes, sporty cars may encourage speeding or recklessness, and SUVs and pick-up trucks are more difficult to maneuver and more likely to have roll-over crashes.
  • Practice, practice, practice. Now is the time to drive a lot with your teen under varied conditions so there will be fewer surprises (and potential crashes) when you’re no longer in the vehicle.
  • Be involved. Research shows that teens with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your insurance rates down. A parent-teen driving agreement can help you set rules and stay involved.

Car Insurance Requirements in Minnesota

All Minnesota drivers are required to have auto liability insurance at these minimum levels:

  • $40,000 per person per crash for Personal Injury Protection.
  • Auto liability insurance of $30,000 for injuries to one person, $60,000 for injuries to two or more people, and $10,000 for physical damage to the other driver’s vehicle or for damage to property (30/60/10).
  • Uninsured motorist coverage of $25,000 for injuries to one person, and $50,000 for injuries to two or more people.
  • Underinsured motorist coverage of $25,000 for injuries to one person, and $50,000 for injuries to two or more people.

Auto insurance companies in Minnesota determine rates based on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what you drive.

Learn more about car insurance available through AAA.