Is Minnesota a no fault state? Yes: Minnesota is one of a small group of states that have adopted a “no-fault” framework for automobile insurance. This system is designed to streamline the claims process and provide swift economic relief to accident victims, and it has significant implications for any driver operating a vehicle within the state. While the idea behind it is to help victims get reimbursement quickly, there can be issues if your injuries and losses go beyond a certain threshold.

The core principle of a no-fault system is that an injured driver’s own insurance company will provide initial compensation, regardless of who caused the accident. This coverage is known as Personal Injury Protection (PIP). PIP benefits are mandated by Minnesota law and cover expenses such as medical bills, lost income, replacement services (e.g., assistance with household chores if you’re injured), and up to $2000 in funeral expenses if the accident results in a death. This expedites the process of covering essential costs compared to the traditional model, where the other driver’s insurance would be involved after determining fault. If you are a resident of Minnesota or if you’re looking to do your research before you hire a car accident lawyer, continue reading to learn more.

PIP Coverage

Minnesota law prescribes minimum levels of PIP coverage. Medical expenses are covered up to $20,000, ensuring you can get timely access to treatment. Additionally, up to another $20,000 covers income loss and replacement services. This is important, as it means that even if you are unable to work due to injuries from the accident, a portion of your income would still be covered. Drivers always have the option to purchase PIP coverage exceeding these minimum amounts, and many do.

No-Fault Doesn’t Mean Fault is Irrelevant

Contrary to common misconception, Minnesota’s no-fault system does not just erase the concept of fault in car accidents. While your initial compensation comes from your PIP coverage, if your losses exceed that coverage and the other driver was at fault, you can then make a claim against their liability insurance. Minnesota law sets some rules about when you can step outside the no-fault system and make a claim against the at-fault driver’s liability coverage or file a lawsuit. An experienced local lawyer will be able to tell you if your case qualifies.

Situations Where No-Fault May Not Apply

Motorcycles and snowmobiles are typically excluded from no-fault insurance rules and separate insurance policies are usually required for these vehicles, which may or may not include PIP components. Additionally, if you are injured by a driver from a state without no-fault insurance, their liability insurance may be the primary source of compensation: they are required by law to have both liability and PIP insurance coverage if they drive within state borders.

The rules for Minnesota’s no-fault system are complicated, and you’ll want the help of an experienced lawyer from the beginning. Contact Justice Served Coalition in Twin Cities and serving the entire state. We understand that your injuries may prevent you from traveling, and we can come to you. We’ll help you fight for the best outcome after an accident.