MN Car Insurance - Frequently Asked Questions
1. My automobile policy was canceled because I did not pay my premium on time. Is this legal?
Minnesota law requires licensed companies to provide a grace period for premium payments 10 days beyond the due date. However if payment is not received by your company by that date, your policy cancels back to the original premium due date.
2. Can my insurance company cancel my auto insurance policy if I am found guilty of driving under the influence (DUI)?
Yes. In Minnesota, if you are convicted of driving under the influence your insurance may be cancelled by your company. However other companies may be happy to provide you replacement coverage.
3. What should I do if I receive a cancellation or nonrenewal notice from my insurance company?
First, contact your agent or your insurance company for specific details regarding the action. Minnesota law allows companies to cancel or nonrenew policies for certain reasons. If you still are not satisfied with your company's explanation, submit a statement detailing the reasons you disagree with the action to the Minnesota Commerce Department. The statement must be received by the Insurance Department within 30 days of your receipt of the notice.
4. What is a surcharge?
A surcharge is an additional premium charge, for a limited number of years, as a result of violations, suspensions or accidents on the driving record of any driver covered under your policy.
5. Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled?
Yes in some instances. The first named insured may exclude a family member from the policy provided that the person being excluded can prove he or she has auto insurance with another company or the Assigned Risk Plan. However, if the person to be excluded has a major violation such as a Driving Under the Influence within the last 5 years, some Companies cannot and will not allow an exclusion to avoid cancellation of the family auto policy.
6. How much is my insurance company required to pay me if my car is damaged?
Your insurance company is required to pay the amount necessary to return the motor vehicle to its same condition just prior to the damage in question. At your request, you may obtain information from the insurance company regarding repair facilities within a reasonable distance of where the motor vehicle is located and where work will be performed in accordance with the written appraisal. You are not required to use any specific repair shop.
7. Is it legal for my insurance company to nonrenew my auto insurance because I have too many claims?
A company may nonrenew a policy for two or more accidents of certain types within 36 months, when the amount paid in claims for both accidents exceeds $1050 after the insured pays any applicable deductible.
8. I don't understand all the terms in my policy. What should I do?
First, contact your agent. Your agent is responsible for servicing your policy, including responding to any questions you may have regarding the terms in your policy. If you purchased your policy directly from the insurance company, a company representative should be able to respond to your questions.
9. What could cause my premiums to increase?
Various factors can change the cost of your auto premium such as: adding or increasing coverages, adding another vehicle to the policy, replacing an older vehicle with a newer one, adding a new driver, changing the usage of the vehicle (driving to work, using for business purposes), increasing the number of miles per year and moving to another area, or change in your insurance scoring. Lastly, your company may have taken a rate increase since your renewal. Direct questions on increases to your agent or company.
10. How can I lower my auto insurance premium?
You may save money on your auto insurance premium by: increasing your collision and comprehensive deductibles or dropping collision and comprehensive coverage on an older car; lowering or eliminating your uninsured (UM) and underinsured motorist (UIM) coverage; rejecting the stacking option for personal injuring protection (PIP); and inquiring about special discounts offered by your insurance company. Make sure you understand the consequences of not purchasing the optional and or recommended coverages coverages prior to requesting changes to your policy.
11. What are the risks of changing insurance companies?
You should be aware that an insurance company has 59 days to underwrite and investigate your application. The company has the right to refuse or cancel your coverage for various reasons within the first 59 days. However, the company may not refuse someone because of age, marital status, occupation or any other unfair discriminatory reason.
12. Why do companies charge different rates for different geographical areas?
One factor used in determining insurance rates is the geographical area in which an individual resides. Based on the company's losses for that defined area, a company will determine premiums based on accident rates and repair costs for that area.
If you have a specific question, please write us at bmeyer@millerhartwig.com or call 952-469-0414.