A Guide from Today’s Driving School
Getting your driver’s license is an exciting milestone, but before you hit the road, consider your car insurance needs. In Minnesota you are required to have car insurance, it is illegal to operate a motor vehicle on public roads without it. Understanding insurance and getting a policy that adequately protects you and others is a daunting task. We will try to simplify things for you.
1. Why Do You Need Car Insurance?
Having car insurance isn’t just a suggestion, in Minnesota it is required by law. Without insurance you risk:
• Hefty fines
• Legal trouble
• Loss of driving privileges
• Liability that can lead to financial ruin
Minnesota Law and Insurance Requirements: In Minnesota, all drivers are required to carry minimum liability insurance that includes:
- Liability
- Covers injury and property damage when you are deemed at fault.
- $30,000 injuries to one person.
- $60,000 injuries to two or more people.
- $10,000 physical damage to other person’s vehicles or property.
- Personal Injury Protection (PIP)
o $40,000 covering medical and non-medical expenses.
- Uninsured:
- Pays for your medical expenses after you have exhausted your PIP benefits. This is applied when the other driver is at fault and does not have car insurance.
- $25,000 for injuries to one person.
- $50,000 for injuries to two or more people.
- Underinsured
- Pays for medical expenses after you have exhausted your PIP benefits. This is applied when the other driver is responsible for the crash and does not have enough insurance to cover your medical claims.
- $25,000 for injuries to one person.
- $50,000 for injuries to two or more people.
It is important to understand that this is rarely sufficient coverage for most incidents, you should consider purchasing more than the minimum required by law.
Even increased coverage will fall short in the event of a cataclysmic loss. This type of loss can leave you responsible for hundreds of thousands of dollars or more in liability. An option to protect yourself against the cataclysmic loss is to purchase what is known as “Umbrella Insurance”. An umbrella policy covers liability that exceeds the coverage your auto policy provides. This means when your auto policy is exhausted, your umbrella policy kicks in for additional coverage. A million-dollar umbrella policy is surprisingly affordable.
When shopping for insurance it is important to work with an insurance agent that you trust. They will be able to help you put together the most affordable and effective policy to protect yourself.
What is Covered by Insurance:
Insurance can cover a variety of situations, including:
- Accidents (damage to your car and others)
- Medical expenses
- Damage from theft, vandalism, or natural disasters
- Legal fees in case of lawsuits
2. Types of Car Insurance Coverage
As a new driver, it’s important to understand the different types of coverage available. Some are required by law, while others offer added protection.
Liability Insurance (Required in MN)
This is the most basic type of car insurance and is required by law in Minnesota. It covers damages to others' vehicles or property and medical expenses in the event you are found responsible for a collision.
Personal Injury Protection (PIP) (Required in MN)
Because Minnesota is a no-fault state, this coverage pays for your own medical expenses and other losses (like lost wages) after an accident—regardless of who caused it.
Uninsured/Underinsured Motorist Coverage (Required in MN)
This type of coverage helps protect you if you’re involved in a collision with someone who doesn’t have enough insurance or any insurance at all. It can cover medical bills and damages to your vehicle.
Collision Insurance (Optional in MN)
Collision insurance covers damages to your car if you hit another car or object (like a tree or a guardrail). While not required by law, it's often a good idea for new drivers, especially if you're driving a newer or more expensive vehicle.
Comprehensive Insurance (Optional in MN)
Comprehensive coverage helps pay for damages to your car caused by events other than a collision, like theft, vandalism, or weather-related incidents (hail, fire, flooding, etc.).
3. How Much Does Car Insurance Cost for New Drivers?
Car insurance rates vary based on several factors. The higher the risk you are, the more you pay for insurance. There are ways to help manage your rate.
SOME Factors That Affect Insurance Rates:
- Age: Teen drivers and young adults are typically charged higher premiums because they are considered higher-risk drivers.
- Vehicle Type: Newer or more expensive cars usually cost more to insure. Cars with better safety ratings and lower theft rates may qualify for discounts.
- Driving Record: If you're a new driver, you’ll start with a clean slate, but any accidents or moving violations can significantly raise your rates.
- Location: Insurance premiums vary based on where you live. Urban areas often have higher rates due to a greater likelihood of collisions or theft.
(This list is not all encompassing)
How to Lower Your Rates:
- Complete a certified driver’s education course — like the ones offered at Today’s Driving School! Most insurers offer discounts.
- Drive Responsibly – Keeping a clean driving record demonstrates you are a responsible driver.
- Maintain good grades — Many providers give a discount for students with good grades.
- Bundle policies — If your family has homeowners or renters insurance, you might save by bundling with auto.
- Drive a practical vehicle — Cars with strong safety ratings and low repair costs usually cost less to insure.
4. Being Added to a Parent’s Policy
As a new driver, one of the easiest ways to start your insurance coverage is by being added to your parent’s or guardian’s existing policy. Adding a new driver to a family policy is often cheaper than purchasing a separate policy for yourself.
Benefits of Being on a Parent’s Policy:
- Lower Rates: Parents who have had continuous insurance coverage for years may have access to lower rates, which you can benefit from.
- Shared Coverage: You’ll receive the same level of coverage as your parents, ensuring you’re fully protected on the road.
- Convenience: It’s easier to manage your insurance when it’s tied to the same account.
However, when you’re added to your parent’s policy, the cost of their insurance will likely increase.
Drawbacks of Being on a Parent’s Policy:
- Driving Record: If your parents have a poor driving record, your rates will be higher, even if you are a good driver. The same is true in reverse, if you have a poor driving record, your parents’ rates will increase, along with their blood pressure.
- Increases Parents’ Premium: Adding a young driver can significantly increase their overall premium.
- Limited Control: You have little, or no control over policy options or deductibles.
5. How to Shop for Car Insurance
Shopping for car insurance can feel overwhelming, but it doesn’t have to be. Here’s how you can find the best coverage for your needs:
- Speak with an Agent: Find an insurance agent you trust and sit down with them to discuss your insurance needs. They can help you put together a policy that is affordable and provides the coverage you need.
- Compare Quotes: Use online tools to compare quotes from multiple insurance providers. Rates can vary significantly between companies, so it’s worth shopping around.
- Ask About Discounts: Insurance companies often offer discounts for things like good grades, completing driver’s education courses, or driving a car with advanced safety features.
- Understand Your Needs: Think about how much coverage you need. If you’re driving an older car, you may not need comprehensive or collision insurance.
Final Thoughts
Car insurance might seem like just another item on your checklist, but it’s one of the most important parts of becoming a responsible driver. Knowing what’s required in Minnesota—and what coverage makes sense for your situation—gives you peace of mind every time you get behind the wheel.
At Today’s Driving School, we’re here to help you navigate your journey to becoming a skilled, confident, and safe driver. If you are ready to get your license, register on our website at todaysdrivingschool.com. Call us at (844) 374-8315 with any questions you have.
Jacob Ahner
Driving Instructor with Today’s Driving School