Layers Of Auto Insurance Coverage

Layers Of Auto Insurance Coverage

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Kauffman Law Firm is licensed to practice in all courts in Minnesota, Iowa, and Wisconsin.  We actively represent injured persons and their families throughout Minnesota, Iowa, and Wisconsin.  We handle cases ourselves or associate with other lawyers in many other states.  However, auto or truck insurance laws are not the same in all states.

This section generally explains layers of auto or truck insurance coverage available in Minnesota.  For an explanation of how insurance works in Iowa and Wisconsin, see: Iowa and Wisconsin: Non No-Fault States.

Layers of insurance coverage in non-auto cases are similar.  For further discussion, see:  Property/Premises Accidents.

Insurance Coverage

There may be several layers of auto or truck insurance coverage and several different insurers involved in your case.  You need to understand and be aware how these auto insurance coverages work—and how they work together.  You should review your own auto insurance policies with your agent to confirm that you have adequate auto insurance.

R:  Indicates this coverage is required.
O:  Indicates this coverage is optional.  You can choose this coverage for an extra charge.

1. Property Damage Liability Insurance (PD)/Collision:

R:  Your Minnesota auto or truck insurance policy must include Property Damage Liability Insurance (PD) which pays for damages to the other vehicle or property if an accident is your fault.

O:  Collision Insurance pays for damages to your own vehicle caused by an accident, no matter who is at fault.

Collision Insurance is optional in Minnesota.  You should talk to your insurance agent about whether you need Collision Insurance.

2. Claims Against Your Own Policy:
Minnesota No-Fault Insurance

R:  Your Minnesota auto or truck insurance policy must include No-Fault insurance.
Your No-Fault Insurance benefits are paid by your own car or truck insurance policy no matter who is at fault.

For more specific information about Minnesota No-Fault Insurance, see: Minnesota No-Fault Insurance:  How No-Fault Works.

Minnesota No-Fault Insurance:

  • Covers specific out-of-pocket expenses described below
  • Incurred as a result of personal injury or death
  • Arising from the maintenance or use of a car or truck
  • Minimum No-Fault limits = $20,000 medical expenses/$20,000 non medical expenses for each policy
  • Insurance policies may be “stacked” for multiple No-Fault benefits*

O: *If you own more than one vehicle, you may “stack” No-Fault coverages to multiply your No-Fault benefits.  For example:  If you own two vehicles, you may “stack” coverages for $40,000 medical expenses/$40,000 non medical expenses:

$20,000 coverage/policy x 2 policies = $40,000 coverage

There is an additional charge for “stacking”.

No-Fault Exclusions

Minnesota No-Fault Insurance does not include:

  • Property Damage**
  • Future loss of earning capacity***
  • Pain, suffering, disability, disfigurement, scarring or emotional distress***

See our generic Jury Special Verdict Form.

**  Your Minnesota auto or truck insurance policy may have Property Damage Insurance (PD)/Collision.  See: 1.  Property Liability Insurance (PD)/Collision above.

*** These losses are recoverable from other coverages.  See below.

3. Bodily Injury Liability Insurance (BI):
Claims Against Another Owner or Driver:
No-Fault Thresholds

R:  Your Minnesota auto or truck insurance policy must include Bodily Injury Liability Insurance (BI).

You may make a Bodily Injury Liability Claim (BI) against another owner or driver’s insurance policy if:

1. You prove that the accident was caused by the fault of another owner or driver, and

2. You meet one of the following No-Fault Thresholds:

  • $4,000 in treatment expenses excluding imaging, OR
  • 60 days inability to work or perform your normal daily activities, OR
  • Permanent injury determined by a doctor, OR
  • Permanent disfigurement or scarring, OR
  • Death

3. You may be entitled to the following Recoverable Losses:

  • Past pain, suffering, disability, disfigurement, scarring or emotional distress
  • Reasonable medical expenses
  • Loss of earnings
  • Future pain, suffering, disability, disfigurement, scarring or emotional distress
  • Future medical expenses
  • Future loss of earning capacity

See our generic Jury Special Verdict Form.

Minnesota minimum Bodily Injury Liability Insurance (BI) coverage:

$30,000/$60,000  Required

4. Uninsured Motorist Insurance (UM)

R:  Your Minnesota auto or truck insurance policy must include Uninsured Motorist Insurance (UM).

UM covers losses similar to Bodily Injury Liability Insurance when the at-fault party has no Bodily Injury Liability Insurance to cover your losses.  In other words, your own Uninsured Motorist Insurance (UM) takes the place of Bodily Injury Liability Insurance for the at-fault party who had no insurance.

Minnesota minimum Uninsured Motorist Insurance (UM) coverage:

$25,000/$50,000   Required

5. Underinsured Motorist Insurance (UIM)

R:  Your Minnesota auto or truck  insurance policy must include Underinsured Motorist Insurance (UIM).

UIM covers losses similar to Bodily Injury Liability Insurance when the at-fault party has not enough Bodily Injury Liability Insurance to cover your losses.  In other words, your Underinsured Motorist Insurance (UIM) provides insurance in addition to the Bodily Injury Liability Insurance limits of the at-fault party.

Minnesota minimum Underinsured Motorist Insurance (UIM) coverage:

$25,000/$50,000  Required

6. Umbrella Insurance:

O:  Umbrella Insurance may provide coverage in addition to the following coverages:

No-Fault Insurance
Liability Insurance/Uninsured Motorist Insurance (UM)
Underinsured Motorist Insurance (UIM)

The at-fault party may have Umbrella Insurance.
Your Minnesota auto or truck insurance policy may have Umbrella Insurance in the form of UIM Insurance.  This provides coverage for you and your family in the event the at-fault driver has not enough insurance to coverage your losses.

Umbrella Insurance is optional in Minnesota.  You should talk with your insurance agent about whether you need Umbrella Insurance.

Let Us Handle Your Insurance Coverages

Interpreting and applying different types of auto or truck insurance may be complex and time consuming.  The insurance companies have much more knowledge and experience in interpreting and applying different types of insurance than you have.  However, Kauffman Law Firm interprets and applies different types of insurance every day.

If you or a loved one have been injured in an auto accident, you need to concentrate on one thing — getting on with your life.  Let our experienced team handle the insurance paperwork including claim forms, reports, authorizations, requests for recorded statements and Defense Medical Examinations (DMEs) involved in different layers of auto or truck insurance coverage.  See: What To Do In Case Of An Accident.

Free Consultation

We offer a free consultation, so you have nothing to lose by contacting us first.
For a free consultation:

Email us at contactus@kauffmanlawfirm.com or

Call us at 507-285-5350 or 877-285-5350

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