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Mike Bryant
Mike Bryant
Attorney • (800) 770-7008

How Does Minnestoa Auto Insurance Compare Nationally?

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I like our system. It isn’t the type of system that I could actually make more money in. You see if there wasn’t no fault and tort thresholds, there would be even more possible cases and we would be able to collect a percentage on everything that was recovered. But, for my clients, a system that pays them some wage loss and gets their medical bills paid, actually saves families when they need the help the most. That is a good trade off in my mind.

But the Insurance Federation is back in full force claiming these outrageous losses being suffered by the "out of control" system we work in? Well what do the numbers say?

General Minnesota No Fault Information

What we know about no fault?

Case Filings: Personal Injury case filings in district court are down over 46% since 1997. # of cases in 1997 = 6,167; # of cases in = 2010 3,586.

Source: Minnesota Court Administration

Arbitrations: No Fault Arbitrations which would be forced to district court in the case of no fault repeal

2009 4844

2010 5476

Source: American Arbitration Association

How does Minnesota Compare?

The comparison charts below are based on how insurance premiums (expenditures) are calculated. The 2010 Insurance Fact Book by the Insurance Information Institute, states: “Expenditures are affected by the coverages purchased as well as other factors. In states where the economy is healthy, people are more likely to purchase new cars. Since new car owners are more likely to purchase physical damage coverages, these states will have higher average expenditure.” p. 59

The National Association of Insurance Commissioners (NAIC) notes that urban population, traffic density, and per capita income have a significant impact on premiums.

Comparison by Mandatory Coverages -

Four states require five coverages – BI, PD, PIP, UI, UIM (Premiums are 2007 numbers)

State

Limits

No Fault?

Avg. Premium

National Rank:

State Coverage

New Jersey

15/30/5

Add-on Choice No Fault

$1,104

#2

Maryland

30/60/15

Add-on

$922

#13

Minnesota

30/60/10

No Fault

$721

#28

North Dakota

25/50/25

No Fault

$512

#51

National Average for Premiums = $795

Comparison by Population (Premiums are 2007 numbers, states with 10 electoral votes) -

State

Coverage & Limits

No Fault?

Avg. Premium

National Rank:

Maryland

BI, PD, PIP, UI, UIM 30/60/15

Add-on Choice No Fault

$922

#13

Arizona

BI, PD

50/100/25

$879

#14

Minnesota

BI, PD, PIP, UI, UIM 30/60/10

No Fault

$721

#28

Wisconsin

BI, PD, UI, MP 50/100/15

$582

#45

National Average for Premiums = $795

Comparison by Population Density (Premiums are 2007 numbers) -

State

Coverage & Limits

No Fault?

Population Density

Avg. Premium

National Rank:

Arizona

BI, PD

50/100/25

56.3

$879

#14

Minnesota

BI, PD, PIP, UI, UIM 30/60/10

No Fault

66.6

$721

#28

Vermont

BI, PD

25/50/10

67.9

$662

#34

Mississippi

BI, PD

25/50/25

63.2

$680

#32

National Average for Premiums = $795

US Average Population Density = 87.4/sq mi

Compared to other No Fault States (Premiums are 2007 numbers and policy) -

State

Coverage & Limits

No Fault?

Avg. Premium

National Rank:

D.C.

BI, PD, UM

25/50/10

Add-on

$1,140

#1

New Jersey

BI, PD, PIP, UI, UIM 15/30/5

Add-on

$1,104

#2

New York

BI, PD, PIP, UM

25/50/10

No Fault

$1,047

#4

Florida

PD, PIP

10/20/10

No Fault

$1,043

#5

Delaware

BI, PD, PIP

15/30/10

Add-on

$1,012

#7

Massachusetts

BI, PD, PIP, UM

30/40/5

No Fault

$981

#9

Michigan

BI, PD, PI

20/40/10

No Fault

$928

#11

Maryland

BI, PD, PIP, UI, UIM 30/60/15

Add-on

$922

#13

Washington

Bi, PD

25/20/10

Add-on

$841

#15

Hawaii

BI, PD, PIP

20/40/10

No Fault

$837

#16

Pennsylvania

BI, PD, PIP

15/30/5

No Fault

$820

#17

Texas

BI, PD

30/60/25

Add-on

$808

#19

New Hampshire

FR only (?),UM

25/50/25

Add-on

$750

#23

Oregon

BI, PD, PIP, UM

25/50/20

Add-on

$723

#27

Minnesota

BI, PD, PIP, UI, UIM 30/60/10

No Fault

$721

#28

Kentucky

BI, PD, PIP

25/50/10

No Fault

$720

#29

Utah

BI, PD, PIP

25/65/15

No Fault

$697

#31

Virginia

BI, PD, UM, UIM

25/50/20

Add-on

$661

#35

Arkansas

BI, PD

50/100/25

Add-on

$660

#36

Wisconsin*

BI, PD, UI, MP 50/100/15

Add-on

$582

#45

Kansas

BI, PD, PIP, UIM

25/50/10

No Fault

$568

#46

South Dakota

BI, PD, UM

25/50/25

Add-on

$534

#49

North Dakota

BI, PD, PIP, UI, UIM 25/50/25

No Fault

$512

#51

National Average for Premiums = $795

*Wisconsin has had numerous reforms since 2007

Minnesota’s Rates Decreased = Since 2003 Minnesota’s net premiums decreased $116 or 13.9%.

Source: 2010 Insurance Fact Book, Insurance Information Institute

So what do we have? A system that works for most Minnesotans, is not overly expensive, and it has a sense of justice. Sure it’s higher than a couple of our neighbors, but look at the the population and the coverages provided. There is no "sky is falling" reality. Minnesota works so let’s make sure the consumers continue to be protected.