Minnesota Automobile Insurance Plan (MNAIP)

Find the Cheapest Insurance Quotes in Your Area

In Minnesota – the “Land of Ten Thousand Lakes” state – everyone who drives is legally required to carry auto insurance. If you are considered a high-risk driver due to a record of accidents, moving violations, or just a lack of driving experience, you may be turned down for auto insurance coverage in the voluntary market. If that is the case for you, you can still find insurance through the Minnesota Automobile Insurance Plan (MNAIP). Every auto insurance company in Minnesota must participate in the MNAIP.
While you will get coverage – and thus be on the road legally – you will likely not be paying the lowest premiums for coverage through the MNAIP. Therefore, we recommend building a better driving record in order to become eligible for better rates in the Minnesota voluntary market.

What is the Minnesota Automobile Insurance Plan (MNAIP)?

A precursor to the MNAIP has been around since 1942. It was designed to guarantee that adequate automobile insurance coverage would be available to any driver who was unable to find insurance through ordinary methods. The name was changed to MNAIP in 1972.
MNAIP assigns drivers to auto insurance companies based on the market share of those insurers. So if State Farm writes 5% of the auto insurance in Minnesota, then it must cover 5% of the high risk drivers in the state. As it happens, Minnesota has a small number of drivers in the plan currently. This is due to the existence of high risk auto insurance providers, as well as standard auto insurance providers improving their methods for evaluating and covering different driver risks.
In Minnesota, every agent and broker who holds a valid license as an automobile insurer can walk you through your options if the MNAIP is where you land.
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