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. However, insurance is not the same in all three 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.
Minnesota No-Fault 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). All car or truck accidents in Minnesota should be covered by the Minnesota No-Fault Law. The Minnesota No-Fault Law pays certain out-of-pocket expenses regardless of 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 insurance company – just like medical insurance is paid by your own insurance company.
* Iowa and Wisconsin are not No-Fault states. No-Fault insurance and No-Fault benefits are not available in Iowa and Wisconsin. However, auto insurance policies issued in Iowa and Wisconsin usually have Medical Pay Insurance.
Medical Pay Insurance usually is limited to $1,000 or $5,000 per accident and covers only medical expenses.
General Principles of Minnesota No-Fault Insurance
No-Fault Insurance is paid by your own car or truck insurance company regardless of fault. 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 insurance limits = $20,000 medical/$20,000 wage loss for each policy.
- Insurance policies may be “stacked” for multiple No-Fault benefits.
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
2. Non-Medical Expenses
Loss of Gross Income to a maximum of $250/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 $2,000
Non- medical limit = $20,000 per policy
No-Fault does not include property damage or pain and suffering. You may have property damage insurance (Collision) through your own insurance.
Liability Insurance: Claims Against Another Owner or Driver/No-Fault Thresholds
You may make a claim beyond Minnesota No-Fault benefits against another owner or driver—called a Liability Claim—if:
1. You prove that the accident was caused by the fault of another, and
2. You meet one of the following No-Fault Thresholds:
- $4,000 in treatment expenses, 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 and suffering.
- Future medical expenses.
- Future lost earning capacity.
- Future pain and suffering.
There may be several layers of insurance coverage and several different insurers involved in your case including:
- No-Fault Insurance
- Liability Insurance or Uninsured Motorist Insurance (UM)
- Underinsured Motorist Insurance (UIM)
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.
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, and requests for recorded statements.
We offer a free consultation, so you have nothing to lose by contacting us first. For a free consultation:
Email us at email@example.com or
Call us at 507-285-5350 or 877-285-5350