Every driver in Minnesota is required to have an insurance policy protecting them in case they cause a crash. A portion of an individual’s policy provides them with liability coverage in the event that they are at fault for a wreck. A driver’s liability coverage can also compensate other people for injuries and property damage losses.
However, Minnesota also requires no-fault coverage on every motor vehicle insurance policy. Motorists may find this hybrid insurance model a bit confusing and may not know what kind of claim they need to file after a crash. What role does no-fault protection play after a motor vehicle collision?
No-fault coverage pays for medical expenses and lost wages
The no-fault coverage required in Minnesota is personal injury protection (PIP) coverage. Every driver has at least $40,000 in PIP coverage that applies to them as an individual and any occupants in their vehicle after a crash that leads to injuries. It does not matter who is at fault for the wreck.
Motorists and the occupants of their vehicles will use the driver’s PIP coverage to pay for medical expenses and lost wages after a crash. The $40,000 breaks down into $20,000 of medical coverage and $20,000 of coverage for secondary losses related to injuries, typically in the form of wage placement. People can claim up to their first $20,000 in healthcare costs and also up to their first $20,000 in lost wages, typically paid out in a limited benefit of $500 each week. Once someone exhausts their no-fault coverage, they may then turn to the liability policy of the other motorist or need to consider a lawsuit.
No-fault coverage often isn’t enough
Healthcare costs have risen dramatically in recent years. While cutting-edge trauma care can make all the difference for someone’s recovery, it can also leave people with hospital bills that are far higher than the amount of insurance coverage available after a serious crash.
Drivers who understand the basics of no-fault and liability coverage may be in a better position to protect themselves after a crash and to seek compensation based on the injuries that they incur. Seeking professional legal advice may be necessary for those who are coping with sizable injuries and are unsure of how to cover their expenses after a Minnesota car crash.