No fault coverage is widely misunderstood. Many drivers believe that their insurance company will cover ALL losses in an accident, regardless of who is at fault. But “no-fault” coverage applies ONLY to expenses resulting from injuries sustained in an accident. Here are some other facts about no-fault coverage.
No-Fault is a Minnesota law.
It was established to help ease the burden of courts and to ensure prompt treatment for accident victims.
No-fault IS the Personal Injury Protection (PIP) on your policy, sometimes referred to as Basic Economic Loss Benefits.
No-fault covers your medical costs, wage loss, replacement services such as housekeeping, and in the event of death, $2,000 of funeral expenses.
No-fault claims are first made on your own PIP. If expenses then prove greater than the PIP limit on your policy, or you attain specified thresholds, you may make a claim against the other driver’s liability coverage if the other driver is found to be liable.
Minimum no-fault coverage is $40,000. That amount is available to each person injured in an accident; $20,000 is allowed for medical expenses and $20,000 may be used for non-medical expenses. Coverage beyond these minimum amounts may be purchased.
No-fault usually does not apply to accidents when you are riding your motorcycle or snowmobile. You must purchase a separate insurance policy covering these vehicles, and the policies will not include personal injury protection. PIP coverage for snowmobiles or motorcycles can, however, be purchased separately.
No-fault claims must be made within six months of the accident. You must include proof of expenses, complete an application for benefits, and submit to a medical examination if requested. Bills should be submitted to the insurance company as they come in.
Minnesota Auto Insurance: Required Coverage
Minnesota Auto Insurance: Optional Coverage
Minnesota Auto Insurance: Renting & Loaning
Minnesota Auto Insurance: No-Fault Coverage
Minnesota Auto Insurance: What Affects Policy Cost?
MNDepartment of Commerce
Part 5 : “What Affects Policy Cost”