No-Fault Insurance Laws

What is No-Fault Insurance?

No-Fault Insurance pays for out-of-pocket expenses as a result of an automobile accident. These expenses can be for medical and chiropractic bills, lost wages, replacement services, and several other types of losses.

How is No-Fault Different from Bodily Injury Liability Coverage?

All Minnesota motor vehicles are required to have No-Fault insurance as well as liability coverage, with only some exceptions (such as when insuring motorcycles).

Bodily Injury Liability Insurance provides coverage for a driver who causes a collision resulting in injuries. People who are seriously injured in an automobile collision may recover from the negligent driver under the at-fault driver’s liability coverage for losses such as medical expenses, lost wages, pain, suffering, disability, embarrassment, and other losses.

No-Fault Insurance coverage doesn’t depend on who caused the accident.  Out-of-pocket expenses such as medical expenses, lost wages, and household services are covered regardless of fault.

What are the required limits for No-Fault Coverage?

In Minnesota, there is a minimum limit of $20,000 per person in medical expense benefits. This covers essentially every type of treatment available, and an injured person may choose his or her own doctors. The insurer must also pay for transportation costs or mileage to and from treatment, as well as prescription medication.

There is also a minimum limit of $20,000 per person in work loss and replacement service benefits. This covers:

  • Wage Loss – 85% of gross lost income up to $500 per week. Lost wages incurred while receiving treatment is also compensated under this benefit.
  • Replacement Services – Up to $200 per week (starting one week after the accident) to pay for household help such as housecleaning, snow removal, and yard work, or for the reasonable value of the time a primary homemaker is unable to keep up with household chores.
  • Death Benefits – Lost wages up to $500 per week, replacement services up to $200 per week, and funeral costs up to $5,000.

Who pays your No-Fault Benefits?

Generally, an injured person collects no-fault benefits from her own insurance company. If an injured person doesn’t have auto insurance coverage of her own, she can receive no-fault benefits from another relative with whom she lives, if that person owns a car and has auto insurance. If an injured person doesn’t live with anyone who has auto insurance and doesn’t have auto insurance of her own, she can receive no-fault benefits under the policy of the vehicle she was occupying at the time of the collision.  If none of these options is available, a person can often apply to have coverage assigned under the Minnesota Assigned Claims Plan.

There are numerous exceptions to these general rules, which should be reviewed with a Minnesota Personal Injury Attorney. Contact Fullerton Law, P.A. to help you with your claim or questions!