Eden Prairie, MN Auto Insurance

Auto insurance is a contract between you and an insurance company. You pay a premium, and in return, the insurance company promises to pay for specific car-related financial losses during the term of the policy. It's important to understand the various types of coverage available to make an informed decision.

Auto insurance policies are typically comprised of several types of coverage. Some may be mandatory in your state, while others are optional. The main types of auto insurance coverage include liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, and personal injury protection.

Liability Coverage

Liability coverage is mandatory in most states, including Minnesota. It covers the costs of injuries and property damage you cause to others in an accident. In Minnesota, drivers are required to carry a minimum amount of liability coverage, which is $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $10,000 for property damage.

It's important to note that these are the minimum requirements and may not be enough to cover all the costs associated with an accident. Therefore, you may want to consider purchasing more than the minimum required liability coverage.

Collision and Comprehensive Coverage

Collision coverage pays for damage to your car resulting from a collision with another vehicle or object, or if your car flips over. Comprehensive coverage pays for damage to your car caused by events that aren't covered by collision coverage, such as fire, theft, vandalism, or contact with animals.

Both collision and comprehensive coverage are optional in Minnesota. However, if you're financing or leasing your car, your lender may require you to have these coverages.

Auto insurance premiums vary from one person to another and are based on a variety of factors. These include your driving record, the type of car you drive, your age, gender, marital status, credit history, where you live, and the amount of coverage you choose.

Insurance companies use these factors to determine the risk of insuring you. For example, a driver with a history of accidents or traffic violations is considered high risk and will likely pay more for auto insurance than a driver with a clean driving record.

Your Driving Record

Your driving record is one of the most significant factors in determining your auto insurance rate. If you have a history of accidents or traffic violations, you're likely to pay more for auto insurance. On the other hand, a clean driving record can help you get lower rates.

Insurance companies typically look at the past three to five years of your driving history. However, some incidents, like a DUI, can affect your rates for longer.

Your Car

The type of car you drive also plays a role in determining your auto insurance rate. Cars that are expensive to repair or replace, have a high theft rate, or are more likely to be involved in accidents often cost more to insure.

On the other hand, cars with safety features like anti-lock brakes, airbags, and anti-theft devices may qualify for discounts on auto insurance.

Finding the best deal on auto insurance in Eden Prairie, MN requires some research and comparison shopping. Start by getting quotes from several insurance companies. Be sure to compare the same types of coverage and deductibles to get an accurate comparison.

Don't just focus on price, though. Consider the company's reputation, customer service, and claim handling process. Check out reviews and ratings from current and former customers to get an idea of what it's like to do business with each company.

Discounts

Many insurance companies offer discounts that can help lower your auto insurance premium. Common discounts include multi-policy, multi-car, good driver, good student, and defensive driving course discounts. Be sure to ask each insurance company about their available discounts when getting a quote.

Remember, the cheapest policy isn't always the best. It's important to find a balance between cost and coverage to ensure you're adequately protected in the event of an accident.