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Auto Insurance Basics


Auto insurance can protect you from the financial costs of an accident or injury, provided you have the proper coverage. Yet many people are unclear about what their insurance policy covers until it is too late. They may have difficulties settling a claim or face rate increases or termination of coverage. We can help you understand how this particular type of insurance as well as the system in Minnesota works.

The No-Fault System in Minnesota


In 1974, the Minnesota Legislature passed the Minnesota No-Fault Automobile Insurance Act. This Act required Minnesota residents and nonresidents at all times to maintain basic economic loss benefits and automobile liability coverage (also known as Personal Injury Protection or PIP) on vehicles they own, provided use of a vehicle is contemplated and one of the following is true:

  1. The vehicle required to be registered or licensed in Minnesota, or

  2. The vehicle principally garaged in Minnesota

Secondly, the Act also required a nonresident of Minnesota to maintain PIP and liability coverage on any other owned vehicle whenever the nonresident drives this
vehicle within the borders of Minnesota.

Additionally, companies listed on this No-Fault Certification Form have formally agreed to provide Minnesota no-fault benefits to their non-Minnesota insureds if those insureds are involved in an accident while driving their vehicle in Minnesota.