If you get injured in a car accident in Minneapolis, Minnesota, your options for collecting financial compensation may be limited to your own car insurance policy under the state’s no-fault law. Personal injury protection or PIP insurance is the type of coverage available to pay for your medical expenses and income losses on your own policy. Understanding how PIP insurance works in Minnesota can make it easier for you to navigate the claims process.
What Is Personal Injury Protection (PIP) Insurance?
Personal Injury Protection is a first-party type of car insurance coverage that pays for the policyholder’s own bills and expenses after a car accident, rather than the other driver’s. PIP will cover the policyholder’s expenses regardless of who is at fault for the collision. It is different from liability insurance, which pays for the other party’s medical costs and property repairs.
Is Minnesota a No-Fault State?
Yes, Minnesota is a no-fault state. This means when a car crash happens, each driver’s own insurance covers the losses rather than holding the at-fault party financially responsible (liable). An insurance company does not factor in who was at fault to determine the payout of benefits. The no-fault system means you get paid from your insurance company faster since fault does not need to be determined first.
What Does PIP Insurance Cover?
Personal Injury Protection insurance in Minnesota pays for the policyholder’s crash-related medical expenses (up to $20,000), lost wages if work is interrupted due to injuries from the accident (up to $20,000) and funeral costs if the accident is fatal (up to $2,000). PIP insurance will not offer coverage beyond these policy limits unless the purchaser has paid for extended coverage.
PIP does not cover property damage, pain and suffering, emotional distress, or post-traumatic stress disorder. If you wish to recover financial benefits beyond what is available on your own policy, you will need to file a claim against the other driver. This requires you to prove that the other driver caused or contributed to your car accident and is therefore liable for your damages.
How to File a Personal Injury Protection Insurance Claim
Report your car accident to your automobile insurance company as soon as possible. Most insurers have multiple reporting options available, including through a mobile app or a 24/7 claim line. You may also have a specific point of contact at your insurance company to call. Ask to open a PIP claim for your injuries and bill coverage.
Your insurance company will assign a claims adjuster to process your claim. When you are contacted by the adjuster, restrict your responses to only the basic facts. Do not admit fault or give detailed statements at this stage of the process. Complete the PIP application sent to you and submit any supporting documents, such as your medical bills and records, for processing.
When Can You File a Claim Against Another Driver in Minnesota?
Minnesota insurance laws require all motorists to carry at least $30,000 per person and $60,000 per accident in bodily injury liability insurance, as well as $10,000 in property damage insurance. Liability coverage pays for the losses of others after an accident, not the policyholder’s. Uninsured/underinsured motorist insurance is also required in Minnesota to provide additional compensation if one of the drivers does not have enough insurance.
To access another driver’s liability insurance outside of the no-fault law and receive greater coverage for your losses, your medical expenses must total at least $4,000 or your injuries must cause permanent disfigurement or a disability lasting 60 or more days. To bring a claim against another driver in Minnesota, you or your Minneapolis personal injury attorney will need to prove that the other driver is at fault.