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How No-Fault Insurance Works in Minnesota

Atlas Insurance Brokers LLC

No-fault insurance, also known as personal injury protection (PIP), provides coverage for medical expenses and lost wages resulting from an auto accident, regardless of who was at fault. In Minnesota, no-fault insurance is a mandatory auto insurance coverage for all drivers, and it provides the following benefits:

  1. Medical Expenses: No-fault insurance covers all reasonable and necessary medical expenses related to an accident, including hospital bills, doctor visits, and medication.
  2. Lost Wages: If you are unable to work due to injuries sustained in an accident, no-fault insurance provides coverage for lost wages up to $500 per week.
  3. Other Expenses: No-fault insurance also covers other expenses related to an accident. Reasonable funeral expenses are covered up to $5,000. Replacement services are services an injured person would normally handle themselves but are unable to because of their injury. This coverage is limited to $200 per week. 1

In MN, personal injury protection provides $40,000 of coverage, comprised of $20,000 for medical expenses and $20,000 for lost income and other expenses. Coverage can be increased by “stacking,” which multiplies your PIP coverage by the number of vehicles on your policy. For example, a family with 3 cars could stack their PIP and increase coverage from $40,000 to $120,000 (40k * 3).

To file a no-fault claim in Minnesota, you must notify your own insurance company, regardless of who caused the accident, hence the name “no-fault” insurance.

It’s worth noting that no-fault insurance does not cover non-economic damages, such as pain and suffering or emotional distress. These types of damages are typically handled through a lawsuit against the at-fault party.

In summary, no-fault insurance in Minnesota provides coverage for medical expenses, lost wages, and other related expenses resulting from an accident, regardless of who was at fault. The process of filing a claim is relatively straightforward, but it’s important to carefully review your policy and understand the benefits and limitations of no-fault insurance before an accident occurs.

1 2023 Minnesota Statutes 65B.44

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