Minnesota No Fault Car Insurance

Minnesota requires all licensed vehicles to have PIP, Liability, Uninsured, and Underinsured coverage in the following amounts:

Personal Injury Protection (PIP)
$40,000 per person per accident
($20,000 for hospital/medical expenses and $20,000 for non-medical expenses such as lost
wages, replacement services, etc.)

Liability
$30,000 for injuries to one person
$60,000 for injuries to two or more people
$10,000 for physical damage to the other driver’s vehicle or for damage to property

Uninsured
$25,000 for injuries to one person
$50,000 for injuries to two or more people

Underinsured
$25,000 for injuries to one person
$50,000 for injuries to two or more people

 
The State of Minnesota has established these minimum policy requirements. Many people, however, choose options that exceed these minimum requirements, thereby increasing the cost of the policy.
Personal Injury Protection (PIP) provides basic economic loss benefits. If you are injured in an accident, this portion of your policy pays you and members of your household, within the stated
limits, for medical expenses, lost wages, and replacement services. These costs are paid no matter who is at fault. This is what is known as “NO FAULT” coverage.

No-fault IS the Personal Injury Protection (PIP) on your policy, sometimes referred to as Basic Economic Loss Benefits. No-fault covers your medical costs, wage loss, replacement services
such as housekeeping, and in the event of death, $2,000 of funeral expenses.

No-fault claims are first made on your own PIP. If expenses then prove greater than the PIP limit on your policy, or you attain specified thresholds, you may make a claim against the other driver’s
liability coverage if the other driver is found to be liable.

Minimum no-fault coverage is $40,000. 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. Coverage beyond these minimum amounts may be purchased.

No-fault usually does not apply to accidents when you are riding your motorcycle or snowmobile. You must purchase a separate insurance policy covering these vehicles, and the policies will not
include personal injury protection. PIP coverage for snowmobiles or motorcycles can, however, be purchased separately.

No-fault claims must be made within six months of the accident. You must include proof of expenses, complete an application for benefits, and submit to a medical examination if requested. Bills should be submitted to the insurance company as they come in.

Minnesota auto insurance liability covers claims to your policy from another driver. It is also the portion of your policy that covers damages to another’s vehicle, within the stated limits, when an accident is your fault.
Underinsured coverage pays, within stated limits, only for medical claims of those covered by your policy. These benefits are in addition to your PIP benefits and are used when the other driver is held responsible for the accident and does not have enough liability coverage to cover your medical claims.

Uninsured pays for your medical expenses after you have exhausted your PIP benefits and when the other driver is held responsible for the accident but is not covered by insurance.

The above types of coverage are required; the following are optional:
Collision which covers damage to your auto when you are involved in an accident with another vehicle or object.

Comprehensive which covers a loss that is NOT the result of a collision. This usually includes fire, theft, falling objects, or an accident involving a deer.

MN law requires every automobile insurance policy, under the property damage liability portion, to provide a minimum of $35,000 in coverage, without a deductible, for damage to, and loss of use of, a rental car (including pickup trucks and vans under 26,000 pounds). State law further specifies that when a driver rents a vehicle in Minnesota, a separate notice must be attached to the rental contract that informs the driver of this coverage. The notice must also state: “purchase of any collision damage waiver or similar insurance affected in this rental contract is not necessary if your policy was issued in Minnesota.” The same law requires that no collision damage waiver or other insurance affecting the rented vehicle can be sold unless the person renting the vehicle acknowledges in writing that the consumer protection notice has been read and understood.