Getting into a car accident in Minnesota can mean dealing with a system that works differently from what you might expect. This blog covers what the process is and how you can navigate it.
Understanding Minnesota’s no-fault law
Minnesota law requires every driver to carry Personal Injury Protection, known as PIP coverage. This coverage pays for medical bills, lost income and other financial losses after a motor vehicle crash, no matter who caused the crash.
PIP benefits in Minnesota provide a minimum of $40,000 per person, split into $20,000 for medical expenses and $20,000 for other economic losses (including a maximum of $500 per week for wage loss and $200 per week for replacement services). These benefits are available through your own policy.
The no-fault system means your first step after an accident is to file a claim with your own insurer. Your PIP coverage helps you address immediate expenses, so you do not have to wait for a decision about fault before you receive payment.
Crossing the threshold to file a lawsuit
In Minnesota, you must satisfy at least one of the “tort thresholds”, such as reaching $4,000 in medical expenses or suffering a 60-day disability, to sue for noneconomic damages. Even if you do not meet these requirements, you may still recover economic losses that exceed your PIP policy limits.
It is also worth noting that crossing the threshold does not automatically mean a successful outcome. You will need to demonstrate that the other driver was negligent and that their actions directly caused your injuries, just as you would in any other personal injury claim.
Recognizing the complications that follow a no-fault claim
Even after you cross the tort threshold and file a lawsuit, Minnesota’s comparative fault rules can reduce what you ultimately recover. If a judge or jury finds you partially responsible for the accident, the court reduces your compensation by your percentage of fault. if your share of fault reaches 50% or more, you lose the right to seek compensation altogether.
There is also the issue of subrogation. While the state limits PIP subrogation to specific cases, other types of insurance, such as health insurance, may seek reimbursement from your settlement.