In Minnesota when a person has been injured in an accident arising out of the maintenance or use of a motor vehicle, the applicable no-fault insurance allows that person to collect, in most situations, from his or her automobile insurance company no matter who was at fault. When, how much, and for how long the injured party may collect can vary depending on your coverage. Please call Milavetz, Gallop and Milavetz to discuss how to find out what your benefits are and determine the coverage and laws that may affect your right to recover damages for injuries.
How No-Fault Insurance Works
No-fault insurance is a system in which auto insurance pays benefits to the insured in case of an automobile accident. The insurance company compensates the insured(s), resident relatives, and passengers for monetary losses, no matter who was at fault. This is contrary to a contributory system in which the at fault person's insurance company would pay compensation after an investigation to determine their insured's percentage of fault. This often leads to the filing of a lawsuit.
The no-fault system is designed to streamline the process of payments to the injured party/parties and lower the burden on the courts. Under the no-fault insurance system you have to cross one of four thresholds, (reasonable and necessary medical bills in excess of $4,000.00, permanent injury, permanent scarring/disfigurement, 60 days of wage loss/disability, or death), prior to taking legal action for bodily injury claims, and pain and suffering. On the other hand, recovery for medical bills, wage loss, mileage, etc. is immediately available through the no-fault portion of your insurance policy. No-fault insurance policies often have a cap on the compensation they will pay. They also require cooperation with reasonable requests.
The no-fault insurance system ensures compensation for medical bills and wage loss no matter who caused the accident. Your insurance policy is primary with a few exceptions. In a no-fault state the other injured parties can also receive compensation from their own insurance company. The specifics of no-fault laws vary widely by state.
Personal Injury Protection (PIP)
If you have a Minnesota automobile policy, you have no-fault insurance, and it is probably called a personal injury protection package. "PIP" insurance pays for the medical expenses of the insured injured party, resident relative, and passengers who were injured in an automobile accident if they do not have their own policy. PIP insurance typically covers damages such as medical bills, wage loss, and funeral expenses, but not pain and suffering or vehicle damage. This varies by state and particular to insurance policies. PIP packages have limits on what they will pay.
Speak With an Attorney
How you handle the situation after a motor vehicle accident can make a significant difference in your monetary recovery. Dealing with insurance companies can be especially tricky. In addition, the no-fault and at-fault insurance systems vary widely by state. Speaking with an attorney at our firm will help to clear up any confusion you may experience. Milavetz, Gallop Milavetz will gladly assist you. Please contact our experienced attorneys at 763-560-0000 or our toll-free number 800-365-6666 for your free consultation.