How No-Fault Works
“Thank you . . . for such a professional and caring way in which you handled my case.”
Dolph Pulliam, Des Moines, Iowa
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, insurance laws are not the same in all states.
This section explains how No-Fault Insurance works in Minnesota. For an explanation of how insurance works in Iowa and Wisconsin, see: Iowa and Wisconsin: Non No-Fault States.
For information concerning different layers of auto insurance coverage, see, Layers of Auto Insurance Coverage.
Minnesota No-Fault Auto Insurance is Required
All owners and drivers of cars and trucks in Minnesota–not motorcycles—are required to have Minnesota No-Fault Auto Insurance (No-Fault). Your Minnesota auto or truck insurance policy must include No-Fault Insurance. The Minnesota No-Fault Law pays certain out-of-pocket expenses no matter who is at fault. These out-of-pocket expenses—often referred to as No-Fault expenses or Personal Injury Protection (PIP) expenses—are paid by your own medical insurance company–just like medical insurance is paid by your own insurance company.
R: Indicates this coverage is required.
O: Indicates this coverage is optional. You can choose this coverage for an extra charge.
General Principles of Minnesota No-Fault Insurance
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”.*
Recoverable Benefits Under Minnesota No-Fault Insurance
No-Fault benefits are divided into two types of expenses: Medical Expenses and Non-Medical Expenses:
1. Medical Expenses
Treatment expenses including medical, chiropractic, and prescriptions.
Mileage to and from treatment appointments.
Medical limit = $20,000 per policy unless “stacked”. See, “Stacking” above.*
2. Non-Medical Expenses
Loss of Gross Income to a maximum of $500/week.
Replacement Services to a maximum of $200/week beginning 7 days after accident including:
Housecleaning including laundry and vacuuming
Grocery shopping and meal preparation
Mowing, yard work, shoveling
Funeral Expenses to a maximum of $5,000.
Survivor’s Economic Loss to a maximum of $500/week.
Non-medical limit = $20,000 per policy unless “stacked”. See “Stacking” above.*
Minnesota No-Fault Insurance does not include:
- Property Damage**
- Future lost wages or lost earning capacity***
- Pain, suffering, disability, disfigurement, scarring or emotional distress***
** Your Minnesota auto or truck insurance policy may have Property Damage Insurance (PD)/Collision. See: Layers of Auto Insurance Coverage
***These losses are recoverable from other coverages. See below.
Bodily Injury Liability Insurance (BI)
Claims Against Another Owner or Driver:
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
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:
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:
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:
O: Umbrella Insurance may provide coverage in addition to the following coverages:
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 cover 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 Coverage
There may be several layers of auto insurance coverage and several different insurers involved in your case including:
- Minnesota No-Fault Insurance
- BI Liability Insurance (BI) or Uninsured Motorist Insurance (UM)
- Underinsured Motorist Insurance (UIM)
- Umbrella Insurance
Interpreting and applying different types of 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 a car accident or truck 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) including Minnesota No-Fault Insurance coverage. See, What To Do In Case Of An Accident?
We offer a free consultation, so you have nothing to lose by contacting us first.
For a free consultation:
Email us at firstname.lastname@example.org or
Call us at 507-285-5350 or 877-285-5350