Minnesota lawmakers are taking steps to help low-income residents get affordable car insurance. A new bill, known as HF 2215, aims to create the Minnesota Lifeline Insurance Program. This program would offer a state-backed auto insurance option for those whose household income is at or below 300 percent of the federal poverty level, which is about $15,650 for an individual.
The bill was introduced by a group of 13 Democratic representatives and recently had its first reading in the Commerce Finance and Policy committee. If passed, the Lifeline Insurance Program would provide essential coverage for those who may struggle to afford traditional insurance.
The proposed insurance policies would include several key benefits. For instance, they would offer a minimum of $5,000 for lost income due to an accident. In addition, the program would cover up to $30,000 for bodily injury or death for one person, and up to $60,000 for multiple people injured in an accident. Property damage claims would also be included, providing up to $10,000 for damages to others’ property. Furthermore, the program would offer uninsured and underinsured motorist coverage with limits of $25,000 for one person and $50,000 for two or more people.
The bill allows for the possibility of setting up to three different regions in Minnesota, with insurance premiums varying by area to reflect local costs. However, the premium in one region cannot exceed 25% more than a similar policy in another region.
To qualify for this program, applicants must show that all members of their household have health coverage that meets certain standards. Additionally, insurance companies would be required to collect a small surcharge of 10 cents per vehicle every six months to support the program.
This initiative aims to make car insurance more accessible for those who need it most, ensuring that low-income residents can drive legally and safely without facing financial hardship.