Total Healthcare & Physical Medicine
2151 Hamline Ave N #111
Roseville, MN 55113
Understanding MN No Fault Insurance Benefits
The Minnesota No-Fault Act governs the benefits of people injured in auto
accidents. It provides for payment of one’s medical bills, a portion of one’s
wage losses, and a number of other out-of-pocket losses if you are injured
in an auto accident.
Because it is “No-Fault”, it doesn’t matter who caused the accident. Your own auto insurer, or the auto
insurer of the vehicle in which you are riding or the insurer of the vehicle which caused you injury if you
don’t have auto coverage, is responsible for paying these benefits. In addition to these benefits, you may
also have the right to seek recovery for your pain and suffering, impairment of function, mental distress and
other such damages from a negligent driver who causes you injury if you have a significant injury, as
defined below.
All Minnesota drivers must have No-Fault insurance, although motorcyclists are only required to carry
liability insurance. It is a misdemeanor to drive without insurance or to let someone drive your vehicle if
you do not have insurance coverage.
In Minnesota, an auto insurer must provide liability coverage protecting you if you cause injury or
property damage of a minimum of $30,000 per person or $60,000 per accident; minimum property
coverage if you cause damage to another’s property up to $10,000; and uninsured/underinsured
minimum coverage of $25,000 per person/$50,000 per accident in case you or an occupant of your car is
injured by the negligence of an uninsured or underinsured driver. In addition, your auto insurer must
provide the following minimum No-Fault or Personal Injury Protection (PIP) benefits:
1.
2.
Medical coverage up to $20,000 per person for you or an occupant of your vehicle. You may
choose your own physicians or chiropractors and the insurer must also pay mileage to/from
treatment;
Wage loss and replacement services coverage totaling up to $20,000 which allows you to:
o Recover 85% of your wage losses up to $250/week;
o Recover up to $200/week for household help like lawn mowing, snow removal,
housekeeping. A “primary homemaker” is entitled to $200/week while unable to do
homemaking chores even if she/he has no out-of-pocket losses;
o Receive death benefits for the loss of a family wage earner of up to $200/week,
replacement services for the loss of a family member who provided such services of up
to $200/week, and funeral costs up to $2,000.
These are the minimum coverages required in Minnesota. One can usually buy higher limits from one’s
insurer. Owners of more than a single vehicle are required to be offered No-Fault stacking by their
insurers, which multiplies most No-Fault or PIP benefits, such as wage losses, medical bills, replacement
services, etc.
You may also purchase optional coverages such as collision (pays for damage to your car regardless of
who is at fault) and comprehensive (pays for damage to your vehicle caused by fire, theft, vandalism and
other perils) coverages.
You collect your No-Fault benefits from your own company, although if you are in a commercial vehicle
you usually collect from that vehicle’s coverage. If you don’t have coverage of your own, the State will
Total Healthcare & Physical Medicine
2151 Hamline Ave N #111
Roseville, MN 55113
assign a company to cover you, unless your injury arises out of the use of an uninsured vehicle which you
own.
You can make a claim against a negligent driver who causes you injury only if:





you sustain permanent injury; or,
you have more than $4,000 in medical bills, no counting x-rays and other such diagnostic tests;
or,
you sustain disability for more than 60 days; or,
you have permanent disfigurement or scarring; or,
death
In cases where the other driver is uninsured or is guilty of a hit and run, you do not have to show such a
serious injury to recover.
If the other driver caused the accident, then her/his insurer is required to pay for your property damage, no
deductible, or you may ask your own insurer to pay for your property damage, if you have collision
coverage, subject to your deductible. If you were partially at fault, then the other party’s insurer must pay
the percentage of fault of its insured for your property damage.
You have no obligation to give a statement to the other person’s insurer. Your own insurer, however, may
be entitled to take a statement from you; however, you should consult with an attorney before doing so.
You do not have to sign a release to get No-Fault benefits paid. The insurer may take up to 30 days to
pay.