Skip to main content
Auto insurance is a contract between a vehicle owner and an insurance company. The owner pays a premium, and the insurer agrees to pay for specific financial losses related to that vehicle during the policy period. In Minnesota, state law requires every registered vehicle to carry minimum levels of coverage before it can be legally driven on public roads. Drivers in Fridley and throughout the Twin Cities metro area shop among licensed car insurance companies to find a policy that fits both their legal obligations and their personal financial situation.

​
What car insurance actually covers

A standard personal auto policy is made up of several coverage types, and each one handles a different kind of loss. Liability coverage pays for injuries or property damage you cause to someone else in an accident. Minnesota requires minimum bodily injury limits of 30,000 dollars per person and 60,000 dollars per accident, plus 10,000 dollars in property damage liability. Personal injury protection (PIP) is required in Minnesota because the state operates under a no-fault insurance system. PIP pays for your own medical expenses, lost wages, and related costs regardless of who caused the accident. The state minimum is 40,000 dollars in PIP coverage. Uninsured and underinsured motorist coverage is also mandatory in Minnesota. It steps in when the other driver either has no insurance or does not carry enough to cover your damages. Collision coverage pays to repair or replace your vehicle after a crash with another car or object, regardless of fault. This coverage is optional under state law but is typically required by lenders when you finance or lease a vehicle. Comprehensive coverage handles vehicle losses that are not collisions, including theft, fire, hail, flooding, and hitting an animal. Minnesota winters and severe weather seasons make this coverage especially relevant for Fridley residents.

​
How car insurance companies are regulated in Minnesota

Car insurance companies that sell policies in Minnesota must be licensed by the Minnesota Department of Commerce. The Department reviews insurer financial health, approves rate filings, and investigates consumer complaints. When you compare companies, you can check an insurer’s complaint history and license status directly through the Department of Commerce website. Shopping among multiple licensed carriers is the most reliable way to compare premiums for the same coverage levels.

​
Factors that affect your premium

Insurance companies use several rating factors when calculating your premium. Common factors include your driving record, the year, make, and model of your vehicle, how many miles you drive annually, where the vehicle is garaged, your coverage selections and deductible amounts, and in many cases your credit-based insurance score. Minnesota does permit the use of credit information in auto insurance rating, though insurers must follow specific rules about how it is applied.

​
What to look for when comparing companies

Beyond price, consider the insurer’s financial strength rating from an independent rating agency, the availability of local or online service during business hours, how claims are filed and how quickly they are typically resolved, and any discounts that apply to your situation such as multi-policy, good driver, or low-mileage programs. Nelson and Associates is licensed in 20 states including Minnesota and Oregon and can help you compare options from multiple carriers. Our team is available Monday through Friday, 9 a.m. to 5 p.m. Central time.

​
Further reading

​
Get a quote

Ready to compare car insurance companies serving Fridley, MN and the surrounding area? Nelson and Associates can walk you through coverage options across multiple licensed carriers. Get a quote