On January 31, 2022, the Minnesota Court of Appeals saved everyone who drives full-sized pickup trucks a large increase on their insurance premiums. The Court of Appeals heard arguments by American Family Insurance against Progressive Insurance that a pickup truck with a gross curb weight of 5,500 pounds should qualify as a “commercial vehicle” for no-fault purposes.
When you get involved in an accident in Minnesota, your own automobile insurance company has to step in and pay for your medical bills and other benefits. Normally, your insurance company must accept those losses as part of doing business here. However, if you are driving a “commercial vehicle” and you cause an injury to somebody else, that person’s car insurance can come after your car insurance to get paid back. This sounds like a problem for the insurance company, but if your insurance has to pay for not only your medical bills but the bills of the people you injured as well, your premiums are going to be higher.
If American Family Insurance had been successful, everybody with a pickup truck that weighed more than 5,500 pounds would have gotten an unwanted surprise the next time they renewed their policy. Just owning the truck would have made you a bigger risk to your automobile insurance company, and your rates would have gone up significantly.
This may not be the last word, though, since American Family still has a chance to appeal the decision to the Minnesota Supreme Court. If you have questions about your no-fault benefits or injuries after an accident, call or text the car accident lawyers at 612-INJURED today at (612) 465-8733.
