Are My Rates Going to Go up for Using Only My No-Fault Insurance Benefits?

If you’ve been involved in a car accident, you’re probably going to see your insurance premiums go up, whether you are at fault or not, the next time your policy is renewed. The insurance carrier will claim that they now have more information about you to justify the increase in your rates. Usually, this means they believe you drive in areas that are more prone to accidents or at times of the day that are riskier.

But what about the times when you weren’t driving your car, and your no-fault insurance has to pay medical bills or wage loss? Times like when you are a passenger in somebody else’s car or when you are riding your bike or walking? No-fault benefits kick in when you are injured during the use or maintenance of a motor vehicle, even if you are not the one using it.

No-fault benefits always go against your own insurance company or the company of a relative with whom you reside. If you are out walking and a car hits you in the crosswalk, your own insurance company steps in to take care of you. If it was your child who was injured, they may not have their own insurance, so they would get benefits through mom or dad’s policy or, if you live with one of your cousins, an aunt, or uncle.

This means you are entitled to $20,000 worth of medical bills and $20,000 of wage-loss benefits even if you weren’t in a car. When it becomes apparent that a relative’s insurance needs to step in to pay for the bills the first question they ask is, “Will this make my insurance go up?” The answer is no, according to Minnesota Statute § 72A.20 Subd 23(d). If the policyholder is not 51% or more at fault for the accident, it is considered an unfair or deceptive practice to penalize them for using their no-fault benefits or for allowing a relative to use them. Clearly if your child is injured in a crosswalk, your insurance company will have a hard time blaming you for the accident.

If you feel like you’ve been unfairly targeted by your insurance company for using your no-fault benefits, you should speak with an attorney or contact the Minnesota Department of Commerce to submit a complaint. If you have any questions, call or text the car accident lawyers at 612-INJURED at (612) 465-8733 for a free consultation.