NO-FAULT INSURANCE Your Rights Under Minnesota’s No-Fault Insurance Law What is No-Fault Insurance? No-Fault Insurance pays for out-of-pocket expenses as a result of an automobile accident. These expenses can be for medical and chiropractic bills, lost wages, replacement services, and several other types of losses. How is No-Fault Different from Bodily Injury Liability Coverage? All Minnesota motor vehicles are required to have No-Fault insurance with some exceptions, such as motorcycles, as well as liability coverage. Bodily Injury Liability Insurance covers a driver who causes an accident and injures someone. People who are seriously injured in an automobile collision may recover from the negligent driver under the at-fault driver’s liability coverage for losses such as pain, suffering, disability, embarrassment, and other losses. Under No-Fault coverage, it doesn’t matter who caused the accident; out-of-pocket expenses, as discussed above, are covered. What are the minimums required for No-Fault Coverage? In Minnesota, there is a minimum requirement of $20,000 per person in medical expense benefits. This covers essentially every type of treatment available, and an injured person may choose his or her own doctors. The insurer must also pay for transportation costs or mileage to and from treatment, as well as prescription medication. There is also a minimum of $20,000 per person in work loss and replacement service benefits. This covers: Wage Loss - 85% of gross lost income up to $250 per week. This includes lost wages while receiving treatment. Replacement Services - Up to $200 per week (starting one week after the accident) to pay for household help such as housecleaning, snow removal, and yard work. Death Benefits - Lost wages up to $200 per week, replacement services up to $200 per week, and funeral costs up to $2,000. Who pays your No-Fault Benefits? Generally, an injured person collects no-fault benefits from his own insurance company. If an injured person doesn’t have auto insurance coverage of his own, he can receive no-fault benefits from another relative with whom he lives, if that person owns a car and has auto insurance. If an injured person doesn’t live with anyone who has auto insurance and doesn’t have auto insurance of his own, he can receive no-fault benefits under the policy of the vehicle he was occupying at the time of the collision. If none of these options is available, a person can often apply to have coverage assigned under the Minnesota Assigned Claims Plan. There are numerous exceptions to these general rules, which should be reviewed with a Minnesota Personal Injury Attorney. Contact us Ramsay, DeVore & Bennerotte P.A. to help you with your claim or question! |
