The Basics of No-Fault
Minnesota is one of a handful of states that follows “no-fault” laws for motor vehicle accidents (MVAs). Many people assume “no-fault” refers to who caused the accident, but that’s not the case. Instead, no-fault laws mean that after a crash, your own car insurance pays for your medical bills and lost wages—regardless of who was at fault.
Personal Injury Protection (PIP) Coverage
On your insurance card, you’ll see a section labeled PIP, which stands for Personal Injury Protection. This is the portion of your policy Minnesota law requires all drivers to carry. PIP typically covers up to $20,000 for medical bills and a separate $20,000 for wage loss or replacement services.
If you have multiple vehicles, you may be able to increase your total benefits through “stacking.” For more details, contact a Minneapolis car accident attorney at 612-INJURED by calling or texting (612) 465-8733.
How Are Medical Bills Paid?
After a car accident, your auto insurance effectively becomes your health insurance for accident-related medical expenses. This includes mileage to and from appointments, hospital visits, and other out-of-pocket costs tied to your care. Hospitals will typically ask for your auto insurance information to ensure proper billing.
If you also have regular health insurance, it may deny payment once it learns your injuries are from a car accident. In that case, your health insurer may seek reimbursement from your auto insurer if they paid bills that should have been covered under your no-fault policy.
What About Wage Loss?
Wage loss and replacement service benefits are more complex. To receive wage loss payments, you must show that you missed work due to your injury. Merely lacking transportation does not qualify—you’ll need a doctor’s note taking you off work and verification from your employer confirming missed time.
Your wage loss benefits are limited to 85% of your average weekly wage, with a maximum of $500 per week. Replacement services are capped at $200 per week and can be used for necessary tasks you can’t perform due to your injuries—for example, paying someone to mow your lawn or clean your home. Be sure to save receipts or proof of payment for reimbursement.
Why Does Insurance Need to Be Involved?
Many clients ask why their own insurance company must be involved if they weren’t at fault. The answer: it’s required by law—and it benefits you. When you settle with the at-fault driver’s insurance, they typically won’t reimburse your medical bills directly. Instead, they’ll expect you to handle those costs using your no-fault coverage. By allowing your no-fault benefits to pay medical expenses, you’ll usually keep more of your settlement money in the end.
Will My Insurance Rates Go Up?
Using your no-fault coverage will not, by itself, cause your rates to increase. Minnesota law prohibits insurers from penalizing you for using no-fault benefits. However, your premiums may still rise simply because you were involved in an accident—even if you weren’t at fault.
Insurance companies often assume that certain driving areas or times of day carry higher risk, which can influence rates. But whether or not you use your no-fault benefits cannot be a factor in that increase. In fact, rate changes typically occur automatically after reporting the claim to your insurer.
Contact Us
If you were involved in a car accident that wasn’t your fault and need guidance on next steps, call or text 612-INJURED at (612) 465-8733 for a free consultation. Our attorneys will review your situation and create a plan to help you secure maximum compensation for your injuries and losses.