Minnesota’s No-Fault Insurance Law

The Minnesota No-Fault Act controls the rights and benefits of people injured in motor vehicle accidents.

What is No-Fault?
Why No-Fault?
Who is required to have Minnesota No-Fault Insurance?
What insurance coverage is required?
What is included in "No-Fault" benefits?
What other coverages are there in my insurance policy?
What should you do if you are injured in a car accident?
Which company pays your No-Fault benefits?
Will my insurance rates go up?
How do you start collecting No-Fault benefits?
When can you make a personal injury claim against the other insurance co?

What is No-Fault?

No-Fault Insurance (typically the injured person’s own insurance company) pays for most out-of-pocket losses, such as medical, and chiropractic bills, lost wages, and many other types of out-of-pocket loss. It doesn’t matter who caused the accident - hence the name "No-Fault". If you have been injured, you may also recover from the "at-fault” or negligent driver for your other losses, such as permanent injury, pain, suffering, disability, embarrassment, and other losses. Because the No-Fault Law is complicated, the following information can only provide a brief summary. We strongly encourage you to call the law firm of WOODS & THOMPSON, P.A. (1-877-571-2345) to talk to an experienced lawyer if you or a family member have been hurt in an accident.

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Why No-Fault?

The basic premise behind the law is that anyone owning a car in the State of Minnesota is required to carry insurance to cover their own medical expenses, wage loss, and other economic losses arising out of an automobile accident.  That way you are able to protect yourself, no matter as to fault, or trying to find insurance from someone else.

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Who is required to have Minnesota No-Fault Insurance?

All Minnesota motor vehicle owners must have No-Fault insurance except motorcycles, which only need liability coverage. You will need to have proof of insurance to obtain, or renew your license plates. It is a misdemeanor criminal offense if you drive, or let anyone else drive your vehicle without insurance.

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What insurance coverage is required?

The insurance carrier must provide the following minimum coverages under your policy:
1. Bodily Injury Liability (BI): $30,000 per person $60,000 per accident. This is the coverage that covers you if you cause an accident, and injure someone.
2. Property Damage Liability (PD): $10,000 per accident. Pays for damages to the other car or other property if you cause an accident.
3. Uninsured, and Underinsured Motorist (UM/UIM): $25,000 per person $50,000 per accident. This is coverage for you, and your family if you are injured by a person without insurance, or without enough insurance.
4. Personal Injury Protection (PIP): Also called “No-Fault” benefits.

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What is included in "No-Fault" benefits?

• Medical Expense Benefits: Typically $20,000 per person. This covers almost every type of treatment available, and you can choose your own doctors. The insurer must also pay your transportation costs or mileage to, and from treatment.
• Work Loss, and Replacement Service Benefits: $20,000 per person, which covers:
• Wage Loss: 85% of your gross lost income up to $250 per week. This includes lost wages while getting treatment.
• Replacement Services: Up to $200 per week (starting one week after the accident) to pay for household help such as housecleaning, snow shoveling, and yard work. An injured “primary homemaker” receives payment for lost services, even if there is no out of pocket loss.
• Death Benefits: Lost wages up to $200 per week, replacement services up to $200 per week, and funeral cost up to $2,000. These are the minimum coverages. You may buy higher coverages. If you own more than one vehicle, your insurer must offer to sell you No-Fault stacking, which multiplies all the No-Fault benefit limits.

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Which company pays your No-Fault benefits?

Generally you collect from your own company. If you are in a commercial vehicle, you usually collect from the commercial vehicle’s insurance. Even if you don’t own a vehicle or otherwise have coverage of your own, you can usually apply to have coverage assigned to you. This can get very complex, so call Woos & Thompson, P.A. immediately if you have questions.

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Will my insurance rates go up?

If the accident was not your fault, then your insurance rates will not go up for making a No-Fault claim.

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How do you start collecting No-Fault benefits?

• Report the accident, and your injuries to your insurer immediately. Fill out an "Application for Benefits" form. There will usually be medical, and employment authorization forms attached. The law may require you to sign authorizations for your insurer, but you should always check with an attorney.
• Report your losses to your insurer in writing. If you can, send copies of medical bills, proof of lost wages, and check stubs, prescription receipts, replacement services, etc.
• Your insurer may ask that you be examined by a doctor of their choice. Consult an attorney immediately. The physical examination must usually take place in your home town.
• You should see a doctor for your injuries immediately, and then continue with all treatment recommendations. If you skip treatment for a full year, the insurer may be able to deny future benefits.

When can you make a claim for personal injury against the other insurance company?

If you have an injury, you may deserve compensation for losses No-Fault benefits don’t cover. These include pain, human suffering, disability, disfigurement, emotional distress, and other losses. You may also claim some losses resulting from the injury, or death of your spouse, your child, or certain loved ones. In, order to recover, you will have to prove liability and may also need to show one of the following:
1. Over $4,000 in medical bills;
2. Disability for more than 60 days;
3. Permanent injury or disfigurement;
4. Death
If the driver causing the accident is uninsured, or hits and runs from the accident site, you may have additional rights.

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