What type of insurance is mandatory to have?

Answer: C — Liability and no-fault

In Minnesota, the mandatory insurance coverage that drivers must have includes both liability and no-fault insurance. Liability insurance is essential because it protects you against claims if you are at fault in an accident, covering damages to others as well as their medical expenses. No-fault insurance, known as Personal Injury Protection (PIP) in Minnesota, provides immediate medical coverage and lost wages for you and your passengers, regardless of who caused the accident. This ensures that individuals can receive necessary medical treatment quickly without the delays that might come from determining fault. While other options might include necessary coverages in different contexts, they are not required under Minnesota law as a minimum for drivers. Only the combination of liability and no-fault insurance meets the state's legal requirements for operating a vehicle.