Minnesota No-Fault

Minnesota is a No-Fault state, which is frequently the source of much confusion following an accident. Don't be confused by the term, as it implies more than it actually means. No-Fault can be confusing, and you should consult an attorney if you are injured in an automobile related accident. No-Fault is predominantly a public policy, and the entire No-Fault law has as its primary purpose to ease the financial burden placed upon accident victims by providing a system of compensation for medical and wage losses incurred as the result of an accident. Its somewhat secondary purpose is to limit the pursuit of personal injury claims against the at fault party to only those claims resulting in "serious injury" so it is a tort reform mechanism. Several key issues can serve as a basic introduction to understanding what No-Fault is and is not.

First: No-Fault applies only to personal injury, it has no relationship to property damages which remain in the "tort" system. Tort is merely an old English term for a wrong or harm which gives rise to a legal cause of action against another person or company for causing the harm.

Second: Every injured person from an accident involving an automobile, including pedestrians, will receive his or her medical and wage loss expenses, including funeral services expenses, from his or her own automobile insurance. Every automobile insurance policy in Minnesota must include No-Fault coverage with at least $20,000 in medical expense coverage and $20,000 in wage loss and replacement services coverage. There are various exceptions and rules that apply to No-Fault directing each injured person to a particular policy of insurance. The Act does not cover motorcycles, snowmobiles or other recreational types of vehicles, and there are various rules regarding commercial vehicles and workman's compensation. There is a somewhat complex set of rules for prioritizing coverage under different automobile policies. If you were injured in an accident, and are unsure of whose No-Fault insurance should apply, you should contact an attorney immediately. Additionally, if you do not own or live with someone who owns and insures a car in Minnesota, there are avenues to obtain medical and wage loss coverage and you should immediately consult an attorney. For example, a pedestrian who does not own a car is entitled to collect No-Fault benefits - regardless of who was at fault for the accident - from the driver / owner of the vehicle that hit him or her.

Third: No-Fault does not eliminate an injured person's right to recover "pain and suffering" type of damages from the at fault driver - it merely restricts the right to serious injury cases. While the injured person's "economic" damages will be paid by his or her own insurance company, the injured person may pursue the at fault party for pain and suffering damages. The No-Fault law provides for the following "Thresholds" one of which must be met before a lawsuit may be initiated: 1. $4000 in medical expenses 2. 60 days of continuous disability 3. Permanent injury and / or disfigurement and 4. Death.