What types of auto insurance coverage are available?

Transcript:

So in Minnesota there are certain coverages that are required by law. Those include liability coverage. Liability coverage is a type of protection so that if you’re in an accident and the accident is your fault, you could become legally liable for damages and liability coverage has your insurance company paying the damages of the other party who was injured.

A second form of required coverage under Minnesota is no-fault coverage. No-fault coverage is primarily to benefit you when you’re injured in an accident or your family members. So if you have medical expenses of wage loss, for example, no-fault coverage pays for your medical expenses and your wage loss without regard to whose fault the accident was. Even if the accident was your own fault, your insurance company under the no-fault coverage will pick up your medical expenses and your wage loss up to limits of $20,000.00 each for each form of coverage.

Then a final required coverage under Minnesota law is called uninsured/underinsured coverage. That’s the one that probably most people have difficulty understanding. What that is is that’s a kind of protection for you. If the person that is involved in an accident with you does not have the legally required insurance coverage, then they can be said to either be uninsured or sometimes underinsured. They have the legal required coverage, but it’s very low in amount and you have a serious injury and you need more coverage.

What uninsured and underinsured coverage does is it has your insurance company then pay for your damages, your harms over and above what’s available because of the other driver who was at fault.