After a crash, many people wonder whether their actions or the other driver’s will impact the amount of support they receive from insurance. Understanding Minnesota’s no-fault insurance laws can help ease the stress injured people experience after a collision. What should Minnesota drivers know?
What is no-fault insurance?
No-fault insurance is a type of car insurance policy designed to cover medical expenses and lost wages. No-fault insurance offers support regardless of who was at fault in an accident.
How does no-fault insurance work?
After an accident, your own insurance company will cover your medical expenses and other related costs up to a certain limit, as specified in your policy. Insurance companies provide this support regardless of who caused the accident, hence the term “no-fault.”
Does no-fault insurance cover vehicle damage?
Typically, no-fault insurance does not cover damage to your vehicle. You would need collision coverage or comprehensive coverage to address vehicle repairs.
How does no-fault insurance benefit drivers?
The primary benefit is the reduction in legal disputes, as each driver’s insurance covers their own costs. It can lead to faster claims processing and less stress in the aftermath of an accident.
Can I still sue the other driver?
In no-fault states, there are often limitations on lawsuits. However, in Minnesota and other states, the law allows exceptions for cases that meet a threshold for severe injuries or damages. To file a lawsuit, the collision must have resulted in one of the following:
- Medical costs of $4,000 or more
- Permanent injuries or scarring
- Death
- Disability lasting more than 60 days
Regardless of fault, you can get the support you need after a crash
No-fault insurance aims to streamline the compensation process after a car accident, providing drivers with quicker access to funds for medical expenses and other related costs. Knowing about this system and seeking legal guidance in the aftermath of a crash can help you navigate claims with confidence.