Many states have insurance rules that only require motorists to carry liability coverage. Drivers need insurance that can reimburse other people if they cause a crash that results in injury or property damage losses. Those affected by a crash are then reliant on the policy of the party who caused the wreck.
In Minnesota, the law is a bit different. The state actually requires that drivers carry no-fault personal injury protection (PIP) coverage. That way, they are not dependent on the person at fault for the wreck for the compensation they need after it occurs. PIP coverage can help offset medical costs and lost wages. The liability coverage of the other driver could help cover other costs, like vehicle repairs.
People typically rely on their no-fault coverage as their first line of defense when a crash leads to a significant injury. What do drivers in Minnesota need to know about the no-fault rules?
Coverage is split between two types of losses
Drivers sometimes overestimate how much coverage they can receive. The minimum no-fault coverage required in Minnesota is $40,000 of coverage. However, that does not mean that someone has protection for $40,000 worth of medical losses if they only have a minimum policy. Instead, they likely have $20,000 in coverage for medical costs and another $20,000 for secondary losses, such as lost income. Confusion about how personal injury protection functions may lead to people having uncovered losses after a crash.
No-fault coverage isn’t the only option
Many motorists in Minnesota make the choice to acquire additional coverage rather than simply carrying the minimum amount of liability and no-fault coverage necessary. Even those with more generous no-fault coverage could face significant financial setbacks after it crash that causes major injuries. In some cases, when no-fault coverage is not adequate, people may need to consider taking legal action against the other party involved in the crash. There could also potentially be third parties, like vehicle manufacturers, with a degree of financial liability.
Learning how no-fault insurance works can be beneficial for those injured in a Minnesota collision. Drivers with injury-related expenses may need help negotiating with an insurance company or exploring their other options for compensation.