Auto insurance laws in Minnesota change for 2016

car auto insurance

Drivers should be aware of the new requirements and make sure to have their proof of coverage handy.

For anyone in Minnesota who is getting set to purchase a new car, is purchasing a new auto insurance policy or who is renewing a policy will need to be ready to comply with the new laws.

Part of those new regulations involve having to provide proof of insurance information at certain times.

For instance, for residents of the state who are looking to renew their license tabs on an existing vehicle, or who are looking to buy or sell a vehicle, a proof of auto insurance card is a requirement as of the start of 2016. This applies to vehicles such as cars, SUVs, vans, pickup trucks and even motorcycles. The effective date for this change in law is January 1, 2016. This will change the regulation from what it had previously been, at which time drivers were simply required to honestly declare whether or not they had purchased an insurance policy for the vehicle. Now, the individual’s word isn’t enough and proof of coverage must be provided.

The reason for the new auto insurance law is to help to reduce the number of uninsured drivers in Minnesota.

car auto insuranceThe new car insurance law has passed following recommendations that were made by the Motor Vehicle Insurance Task Force. That organization was first established in 2014 by the Legislature in order to make this type of recommendations. It suggested that by requiring the proof of insurance policies to be presented at the time of purchase, sale and renewal of vehicles and licenses, it would help to cut back on the number of people who are claiming to have coverage but who are not actually adequately protected as per Minnesota law.

The Task Force made the recommendation after it presented data suggesting that 10.8 percent of drivers in Minnesota are doing so without auto insurance coverage. The law in the state requires that all vehicles be insured before they are used on the state’s roads and streets. It also requires that drivers have proof of their insurance policies whenever they are operating a vehicle or when there are plans to use the vehicle.

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