Minnesota has some of the best mandatory automobile liability insurance laws in the country. The applicable statute even requires drivers to carry uninsured and underinsured motorist insurance. Nearly all of the other states don't require that. What comes to issue though is that the coverage limits of $25,000 per person and $50,000 per occurrence just aren't enough.
Regardless of mandatory vehicle insurance laws, about 10 percent of motorists in Minnesota are uninsured and another 10 percent are underinsured and only carry minimum coverage. In the case of a serious accident though, even minimum coverage simply isn't enough.
Uninsured Motorist Coverage
An uninsured motorist insurance claim is made when you're injured in a collision that was the fault of an uninsured driver. You'll file your claim against your own insurance company. Most vehicle insurance companies pay for damages like:
- Medical bills
- Lost earnings past and future
- Pain and suffering
- Permanent disfigurement
- Permanent disability
Most insurers aren't going to pay for repair or replacement of your vehicle in an uninsured motorist claim. If you have collision coverage, you can make your property damage claim under that. You're probably not the only person covered by your uninsured and underinsured motorist coverage either. Check your policy. Residents of your household who are blood relatives are probably covered too, even in a hit-and-run-accident or when any of you are bicyclists or pedestrians. Minimum mandatory uninsured/underinsured coverage in Minnesota is $25,000 per person and $50,000 per occurrence. That $25,000 simply isn't enough if an insured person breaks a leg and requires orthopedic surgery, hospitalization and extended therapy.
Underinsured Motorist Insurance Coverage
The good news is that if you're in an accident that's caused by an underinsured motorist, there's at least $25,000 of coverage available. That's still not enough to pay the hospital, orthopedic surgeon and therapists. Unless you carry underinsured motorist coverage, you're personally on the hook for the balance.
Whether you're injured in an accident that's the fault of an uninsured driver or an underinsured driver, it's likely that your minimum mandatory vehicle insurance won't be enough. You'll want to make the smart choice, and boost your insurance coverage so that you and your family are protected. At Value Plus Insurance, we can add uninsured and underinsured coverage to your existing coverage, or we can access many different companies to find coverage consistent with your needs. Don't forget about that collision coverage either.
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