No-fault insurance is an auto insurance policy that covers medical expenses and lost wages for drivers involved in an accident, regardless of who caused it. Several states, including Minnesota, have adopted this system to promote fairness and affordability in driving. If you’re struggling to comprehend how no-fault insurance affects your case after an accident, seek the guidance of an attorney. 1-800-Injured, a legal and medical directory, can help you locate appropriate resources in your locality.
What Is No-Fault Insurance?
Before we go any further, let’s dig a bit deeper into no-fault insurance. This auto insurance policy provides coverage for lost wages, medical expenses, and other related expenses. It does so regardless of who caused the car accident. Under a no-fault system like the one found in Minnesota, each driver’s own insurance policy is responsible for covering their own medical expenses and lost wages. This is in comparison to other states that rely on the at-fault driver’s insurance policy to cover these expenses.
The goal of a no-fault system is to reduce the number of lawsuits and insurance disputes that arise after an accident as well as to ensure that accident victims receive the necessary medical care and financial support they need.
How Does No-Fault Insurance Work in Minnesota?
Just 12 states in the United States have a no-fault insurance system, including Minnesota. Drivers in Minnesota must obtain personal injury protection (PIP) coverage as part of their auto insurance policy under this system. PIP insurance provides coverage for medical expenses, lost wages, and related expenses for the policyholder and passengers involved in an accident, regardless of fault. The PIP coverage in Minnesota is capped at $20,000 for medical expenses and lost wages per person.
Besides PIP coverage, liability coverage is also mandatory for Minnesota drivers. This insurance covers property damage and bodily injury for other drivers and passengers if the policyholder is found responsible for the accident.
The minimum liability coverage required in Minnesota is:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $10,000 for property damage per accident
Benefits of No-Fault Insurance in Minnesota
One of the main benefits of no-fault insurance is the fact that it provides quick and easy access to medical care and financial support for accident victims. Under a no-fault system like the one found in Minnesota, car accident victims do not have to wait for an insurance company to determine who was at fault for the accident before receiving their needed assistance.
This type of financial protection is especially important for individuals who are unable to work due to their injuries. Remember, PIP coverage provides a driver with the financial support they need to pay for their living expenses while they recover.
Another advantage of no-fault insurance in Minnesota is that it can potentially minimize the occurrence of legal battles and insurance conflicts that can arise following an accident. In other states that follow fault-based systems, individuals harmed in accidents typically have to sue the insurance provider of the at-fault driver to obtain reimbursement for medical expenses and lost wages. This process can be costly, time-consuming, and may not always result in a favorable outcome for the victim.
No-fault insurance, on the other hand, enables accident victims to bypass the need for legal action and rely on their own insurance coverage to receive compensation for their losses.
Drawbacks of No-Fault Insurance in Minnesota
A drawback of no-fault insurance is the fact that it can be more expensive than traditional fault-based insurance policies. Remember, in no-fault insurance, each driver’s own insurance policy is responsible for covering their medical expenses and lost wages. For this reason, it is not uncommon for insurance companies to charge higher premiums to account for the increased risk of payouts.
By the basic definition, there is no need to determine fault in a no-fault system. For this reason, insurance companies don’t really have an incentive to investigate accidents and determine who was truly at fault. This leads to increased fraud and abuse.
Another potential drawback of no-fault insurance in Minnesota is that it can limit an individual’s ability to file a lawsuit to hold a negligent party responsible. This may result in difficulties recovering damages for non-economic damages like pain and suffering.
Reach Out to 1-800-Injured
While no-fault insurance policies may expedite the process of getting compensation for medical expenses and lost wages, it can also result in accident victims leaving money on the table while all parties end up spending more for coverage. If you believe you aren’t receiving the compensation you deserve for your losses, a personal injury attorney can help.
Contact 1-800-Injured today to find a lawyer near you. 1-800-Injured is a lawyer and medical directory. We’ll ask you to provide a bit of information on your case. Then, we can help you find a qualified lawyer with experience handling cases like yours.