Understanding Minnesota's No-Fault Auto Insurance: The Role Of Pip

Minnesota is a no-fault state, meaning that your car insurance pays for certain losses after an accident, regardless of who caused the crash. Personal Injury Protection (PIP) insurance is required for all drivers in Minnesota and covers the costs of injuries sustained in an automobile accident, regardless of who is at fault. PIP insurance covers medical expenses, lost income, and other non-medical expenses resulting from an injury in a car accident. Minnesota's minimum PIP insurance requirement is $40,000 per person per accident, including $20,000 for medical expenses and $20,000 for non-medical expenses.

Who is covered by PIP insurance?

In Minnesota, your PIP coverage applies to you (the policyholder), your spouse and children, any relative living in your home as long as they do not have a car insurance policy of their own, and anyone using your car (with permission) if they don't have coverage of their own.

If you are a passenger or have borrowed a friend's vehicle, you can make a claim to the No Fault insurance for that vehicle. If you live with a relative who owns a motor vehicle, then you are entitled to receive PIP benefits from their auto insurance if you have none of your own.

PIP coverage extends to drivers and their passengers from states that don’t have PIP coverage from their own insurers or whose states require less PIP benefits than is required by Minnesota law, as long as the insurer of the out-of-state car is licensed to do business in Minnesota. If licensed to do business in this state, Minnesota law requires that it provides standard Minnesota PIP coverage.

A PIP claim can be made by pedestrians or bicyclists who are injured by a vehicle. You don’t have to be driving, or even in a car, for your No Fault insurance to protect you. If you have car insurance, your PIP policy covers you if you are hit by a motor vehicle and injured while walking or riding your bicycle. If you have no PIP, under your own or a resident relative’s coverage, then the PIP coverage of the vehicle that struck you must pay PIP coverage on your behalf.

What does PIP insurance cover?

Personal Injury Protection (PIP) insurance is required for all drivers in Minnesota. It covers the costs of injuries sustained in an automobile accident, regardless of who is at fault. PIP insurance covers medical expenses, lost income, and other non-medical expenses resulting from injuries in a car accident. Minnesota's minimum PIP insurance requirement is $40,000 per person per accident, with $20,000 allocated for medical expenses and $20,000 for non-medical expenses.

Medical Expenses

PIP insurance covers all "reasonable expenses for necessary medical care" resulting from injuries sustained in a car accident. This includes a range of services such as chiropractic care and transportation to medical appointments. It also covers medical expenses for broken bones, whiplash, and head trauma.

Lost Income

In addition to medical costs, PIP coverage provides reimbursement for lost wages. It pays a maximum of 85% of gross pay up to $500 per week. For example, if you earn $500 per week, you will receive $425 per week until you return to work or reach your policy limit. If you resume working part-time, any income earned will be deducted from the PIP payout.

Non-Medical Expenses

PIP insurance also covers non-medical expenses, such as "replacement services." These are chores and other unpaid household work that an individual cannot perform due to their injury. This can include housekeeping, grocery shopping, meal preparation, mowing, and shovelling. PIP provides up to $200 per week for replacement services, which can be claimed seven days after the accident.

Funeral and Burial Costs

In the unfortunate event that someone on your policy is killed in an accident, PIP insurance provides funeral and burial costs of up to $5,000. Surviving dependents, such as a spouse or children, can also receive benefits. They are eligible for economic loss benefits of up to $500 per week and replacement service loss benefits of up to $200 per week. These benefits continue until the limit is reached or the dependent is no longer considered a dependent, such as when a child turns 18.

What is the minimum PIP insurance requirement?

Minnesota is a "no-fault" state, meaning that your own car insurance coverage pays for certain losses after an accident, regardless of who caused the crash. In Minnesota, this is known as "Personal Injury Protection" or "PIP" coverage. This insurance is required for all drivers in Minnesota and covers the costs of injuries in an automobile accident.

The minimum PIP insurance requirement in Minnesota is $40,000 per person per accident, with $20,000 for medical expenses and $20,000 for non-medical expenses. This includes medical expenses, lost income, and other expenses such as childcare that result from an injury in a car accident.

If you own multiple vehicles, you can choose to stack your PIP insurance. This means that the sum of your PIP coverage will apply every time you drive any of your cars. For example, if you own two cars and stack PIP coverage with a $20,000 limit, your coverage limit for both medical and non-medical would be $40,000.

While Minnesota has a minimum PIP requirement, it is recommended that drivers consider increasing their coverage to protect their financial assets, vehicles, and passengers adequately.

What isn't covered by PIP insurance?

Personal Injury Protection (PIP) insurance is required for all drivers in Minnesota. It covers the costs of injuries sustained in an automobile accident, regardless of who is at fault. However, there are certain things that are not covered by PIP insurance.

Firstly, PIP insurance does not include compensation for pain and suffering. It is designed to cover the immediate costs of medical care and lost income, but it does not take into account the emotional or physical pain and suffering that may result from an accident.

Secondly, PIP insurance does not cover property damage. This includes damage to your vehicle or other property. If you want to be covered for damage to your vehicle, you would need to have collision or comprehensive coverage in addition to your PIP insurance.

Additionally, PIP insurance has coverage limits. In Minnesota, the minimum PIP insurance requirement is $40,000 per person per accident, with $20,000 for medical expenses and $20,000 for non-medical expenses. This means that if your injury-related costs exceed these amounts, you may have to pay out of pocket or seek additional coverage.

It is important to note that PIP insurance is meant to provide a minimum level of coverage and may not cover all possible expenses related to an automobile accident. It is always a good idea to review your insurance policy carefully and consider additional coverage options to ensure you have the protection you need.

How do you make a PIP claim?

To make a PIP claim in Minnesota, you must first notify your insurance company of the accident, either by phone or through their online claims portal. You must do this within six months of the accident. From there, your insurance company will instruct you on the next steps to receive compensation for your losses.

According to the Minnesota Department of Commerce, when making a claim, you must include proof of expenses, complete an application for benefits, and submit to a medical examination if requested. You should submit any bills to your insurance company as you receive them.

Your PIP insurance covers your own injuries, so you should make a claim directly to your insurer. All relatives living with you who are not insured by their own policy are also covered by your PIP insurance, as are any passengers in your car at the time of the accident who do not have their own PIP insurance.

Frequently asked questions