In Minnesota, if you cause damage to another driver’s property in an accident, expect your auto insurance policy to cover damages up to specified liability limits. Unfortunately, with Minnesota’s minimum property damage liability of only $10,000, insurance will only pay out up to $10,000, with any excess damages paid out of your pocket if you are determined to be at fault.
Suppose you are inadequately insured and cause damage to another driver’s vehicle or property (e.g., house or mailbox). In that case, that driver reserves the right to file a lawsuit to recover all damages.
To choose the proper coverage limits in an at-fault state, assess the estimated costs of property damage repairs or replacement in your area. For example, suppose you live in a dense urban area with heavy traffic congestion. In that case, there is a greater likelihood of a future property damage claim due to a minor/major vehicle collision, so choose a higher property damage liability limits (e.g., $100,000).