What is Minnesota No-Fault Insurance anyway?
No-fault insurance, often referred to as personal injury protection insurance (PIP)*, is designed to cover drivers and their passengers’ medical costs, wage loss, replacement services (such as housekeeping) and, in the event of death, $2,000 of funeral services, in the event of a covered accident, regardless of who is found to be at fault. This insurance coverage is different from other auto insurance such as comprehensive, collision, and liability, which only pay for damages depending on who is “at fault” in the accident. No-fault insurance is mandatory for motor vehicle (but not motorcycle**) drivers in the State of Minnesota. Minimum no-fault coverage is $40,000***, $20K for medical, $20k for non-medical. Coverage beyond these minimum amounts and coverage for motorcycles may be purchased.
No-fault insurance typically covers the following for policy owners and their passengers:
- Medical ($20k minimum): Ambulance, hospital, and medical expenses resulting from the accident.
- Non-medical
($20k minimum):
- Income losses resulting from the inability to work after the accident.
- Mileage incurred for travel to/from medical treatment.
- Essential/Replacement services that cannot be performed due to injuries which can include childcare and help with household chores like shoveling, mowing, cooking, laundry and cleaning.
- Funeral expenses ($2000).
No-fault insurance DOES NOT cover the following:
- Damage to your vehicle (this may be covered under the collision coverage portion of your insurance).
- Vehicle theft (this may be covered under the comprehensive coverage portion of your insurance).
- Damage to other people’s property ($10k minimum for property damage liability coverage portion of your insurance).
- Liability for bodily injuries (this is covered at $30k per person/$60k aggregate minimum on your liability policy).
- Underinsured/Uninsured coverage (this is covered at $25k per person/$50k aggregate minimum on your UIM/UM policy).
If you are involved in a motor vehicle accident, whether you are at fault or not, you should contact an experienced Minnesota personal injury attorney to be sure that you are receiving the full benefit of your insurance coverage and to see if you have a claim against the other driver’s insurance as well. Give us a call at 763-682-1324 or contact us.
*Also sometimes referred to Basic Economic Loss Benefits.
** No Fault/PIP and Underinsured/Uninsured polices are largely unregulated for motorcycle coverage and will depend on the contract language of each motorcycle policy.
*** That amount is available to each person injured in an accident; $20,000 is allowed for medical expenses and $20,000 may be used for non-medical expenses.
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