Imagine driving along the scenic bluffs near Lake City or heading home through snowy roads in Lutsen after a winter storm. You feel confident because your insurance card shows you are legal and covered.
Many drivers carry only the basic policy required by law in Minnesota. It meets the legal requirement, but when a serious accident happens in Red Wing or Ellsworth, people often discover why minimum coverage isn’t always enough to protect their savings, home, or future income.
At MBA Insurance, we see how these policies perform during real claims. State minimums are built to meet legal rules, not to fully protect your financial life. Our goal is to help you spot the gaps before an accident exposes them.
Minimum Coverage vs. Higher Limits
Minimum policies usually:
- Meet legal requirements only
- Offer lower liability caps
- Leave gaps after serious accidents
Higher limits typically:
- Cover more of the real cost of injuries and repairs
- Protect savings and home equity
- Reduce the risk of lawsuits affecting your finances
What Does Minimum Auto Coverage Really Mean?
Every state has laws that require drivers to carry a certain amount of liability insurance. This is meant to pay for the injuries or property damage you cause to others in an accident. In Minnesota and Wisconsin, these limits are set by the government.
- These limits keep you legal to drive, but they are often based on outdated costs.
- They do not reflect the current price of medical care or modern vehicle repairs.
- If an accident exceeds those limits, you pay the difference out of pocket.
The Problem with Modern Repair Costs
The cars driving through Red Wing and Ellsworth today are more advanced than ever. A decade ago, a fender bender might have cost a few hundred dollars to fix. Today, even a minor tap on a bumper can damage expensive sensors, cameras, and cooling systems.
- A new luxury SUV or a heavy-duty work truck can easily cost $60,000 to $80,000.
- If you have a minimum property damage limit of $10,000 or $25,000 and you total one of these vehicles, your insurance will only pay up to that limit.
- You will be stuck paying the remaining $40,000 out of your own pocket.
This is a primary reason why minimum coverage isn’t always enough. The math simply does not add up when you are sharing the road with expensive, high-tech vehicles.
Medical Bills and Liability Limits
Property damage is only half of the story. If someone is injured in an accident, the medical bills can reach six figures in a matter of days. Minimum bodily injury limits are usually very low. If you are found at fault for an accident near Lake City that results in a long hospital stay for another driver, a basic policy will be exhausted almost instantly.
When your insurance runs out, the injured party can sue you for the rest. This can lead to:
- Frozen bank accounts.
- Liens placed on your property.
- Court-ordered garnishment of your paycheck for years to come.
Local Risks in Minnesota
Living in the Upper Midwest brings specific challenges that make basic insurance a risky choice. Our local agents in Lutsen, Red Wing, Lake City, and Ellsworth understand these factors well.
- Wildlife Encounters: Deer accidents are extremely common on our backroads. If you only have basic liability, you likely do not have “comprehensive” coverage. This means your insurance will not pay a dime to fix your own car after hitting a deer.
- Severe Weather: Summer hail in Minnesota can destroy a roof or dent every panel on a car. Minimum policies often lack the protection needed for these natural events.
- Uninsured Drivers: Not everyone on the road follows the rules. If you have a minimum policy, you might not have enough protection to cover your own medical bills if you are hit by someone who has no insurance at all.
Protecting Your Passion and Business
This issue is not limited to car insurance. If you own a small business in our local communities, having the bare minimum of general liability insurance can be a huge mistake. A single slip-and-fall accident at your shop or a mistake during a service call can lead to a lawsuit that far exceeds a basic policy.
At MBA Insurance, we take your passion for your business seriously. We look at the specific risks of your industry and provide the products you need right within your local community. We offer expertise that helps you choose limits that actually cover your assets rather than just checking a box for a contract.
The Value of Professional Guidance
The team at MBA Insurance Services understands that no two households are the same. A family in Ellsworth might have different needs than a seasonal resident in Lutsen. That is why we do not offer one-size-fits-all policies.
When you work with us, we follow a simple process:
- We take time to look at your lifestyle, your assets, and your specific risk factors.
- We compare policies from top-rated insurance carriers to find the best value.
- We offer coverage recommendations in plain, easy-to-understand terms without using confusing jargon.
- We adjust your coverage as your life changes, such as when you buy a new home or start a family.
Talking to a Real Person Matters
In a world of automated phone trees and giant national websites, MBA Insurance stays true to our local roots. We have four convenient locations to serve you. You can walk into our offices in Red Wing, Lake City, Lutsen, or Ellsworth and talk to a real person who lives in your area.
Having 24/7 direct access to a local agent means that when life brings an unexpected challenge, you are not left facing the consequences alone. We are here to act as your financial safety net.
How to Get the Right Coverage
Getting better protection does not always mean a massive increase in your monthly premium. Often, the cost to double or triple your coverage limits is surprisingly low. Our agents can show you how to structure your policy to get the most protection for every dollar you spend.
Call us today at one of our local offices or visit us online to schedule a review of your current insurance. Let MBA Insurance Services help you craft a plan that keeps you and your family protected today and in the future.
