Are Minn. Renters Covered by State Insurance?

Because the state of Minnesota mandates coverage of $35,000 when a person rents a car, insurance coverage sold at auto rental counters in the state is unnecessary, according to a blog posted on

Deal Spotter blog writer John Ewoldt writes that his insurance agent told him the loss of use, collision damage waiver, and liability coverage sold at the auto rental counter in Minnesota are all unnecessary. But that’s not true in all other states, he emphasized.

The writer stated that while he was on vacation renting a car, the sales agent warned that if he was in an accident and the car was out of service for an extended period, the rental car agency would send him a bill for loss of use and downtime. The writer said the insurance would have cost him $10 to $15 extra per day.

Ewoldt does state, however, that experts recommend $100,000 coverage. The state’s $35,000 of coverage might not be enough if the renter totals two cars in a crash. If the car is for business use, the employer’s insurance is probably the primary insurance, not the driver’s personal insurance. Also, rules are different for rental contracts longer than one month. In addition, In addition, the state’s rules are different regarding motor home rentals.

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