What is Full Coverage Auto Insurance in Minnesota?

Introduction

The term "full coverage" is commonly used but can be misleading. Understanding what full coverage actually means helps you make informed decisions about your auto insurance needs in Minnesota.

What Full Coverage Typically Includes

Full coverage auto insurance generally refers to a policy that includes liability, comprehensive, and collision coverage, though the exact components can vary.

Liability Coverage

Required in Minnesota, liability coverage pays for damage and injuries you cause to others in an accident where you're at fault.

Collision Coverage

Optional coverage that pays for damage to your vehicle from collisions with other vehicles or objects, regardless of fault.

Comprehensive Coverage

Optional coverage that protects your vehicle from non-collision incidents like theft, vandalism, weather damage, fire, and animal collisions.

Additional Coverages to Consider

Beyond the basic full coverage components, you may want to consider:

Uninsured/Underinsured Motorist

Required in Minnesota, this protects you if you're hit by a driver without adequate insurance.

Medical Payments Coverage

Helps pay for medical expenses for you and your passengers, regardless of fault.

Rental Reimbursement

Covers the cost of a rental car while your vehicle is being repaired after a covered claim.

Is Full Coverage Right for You?

Whether full coverage makes sense depends on several factors:

Vehicle Value

If your vehicle is new, valuable, or financed, full coverage is typically recommended or required.

Financial Situation

If you couldn't afford to replace or significantly repair your vehicle out of pocket, full coverage provides important protection.

Risk Tolerance

Consider your comfort level with potential out-of-pocket expenses if you only carry liability coverage.

Understanding Coverage Limits

Even with full coverage, your policy has limits. Make sure your coverage limits are adequate for your financial situation and potential risks.

Key Takeaways

• Full coverage typically includes liability, collision, and comprehensive
• It's not required by law, but may be required by lenders
• Consider your vehicle value and financial situation
• Review coverage limits regularly

Next Steps

If you're unsure whether full coverage is right for you, consult with a licensed insurance professional who can help you evaluate your specific needs.