Minnesota No-Fault Insurance: How It Works & What to Do

• In Minnesota, your auto insurance policy covers medical expenses, replacement services, and lost wages after a car accident, even if you were at fault.
• Minimum coverage is up to $20,000 for medical expenses and $20,000 for wage loss, replacement services, and other damages. In the event of a fatality, the policy provides $5,000 in funeral and burial expenses. 
• In addition to the no-fault insurance benefits, you may be able to file a lawsuit against an at-fault driver for additional compensation.

No-fault insurance is the personal injury protection (PIP) on your auto insurance policy. If you are involved in an accident, your PIP will cover any medical costs, replacement services, and lost wages (up to the policy limit), regardless of who is responsible for the accident. If the accident involved a fatality, some funeral expenses are covered. It’s commonly known as “no-fault insurance” because fault does not factor into whether you can receive these benefits as long as the incident involves the maintenance or use of an automobile.

Minnesota is a no-fault insurance state, meaning all Minnesota drivers must carry no-fault insurance (PIP) on their auto insurance policies. This law was instituted by the 1974 Minnesota No-Fault Automobile Insurance Act. The no-fault law was designed to streamline the claims process and provide faster compensation. Before that, many car accident victims waited months or even years to receive compensation while Minnesota courts worked to determine who was at fault for a crash.

Minnesota no-fault insurance will cover a range of damages caused by an accident. Minimum PIP coverage includes:

• Medical expenses: Up to $20,000 in medical costs related to the accident, such as doctor visits, chiropractic care, surgeries, physical therapy, and medications​.
• Non-medical expenses: If you cannot work due to injuries sustained in the accident, no-fault insurance provides up to $20,000 in wage replacement. The statute provides 85% of weekly wages up to $500 weekly. You can also use a portion of this $20,000 to cover replacement services, such as house cleaning or yard maintenance. This benefit is capped at $200 per week.
• Funeral expenses: In a fatal accident, no-fault insurance covers up to $5,000 in funeral expenses.

PIP will not cover expenses beyond those limits unless you have elected to extend the coverage. It also does not cover damage to your vehicle or non-economic damages such as pain and suffering. If you need more than your no-fault insurance will cover, you may have to file a claim against another driver. Unlike your PIP compensation, this will require you to show that the other driver was completely or partially at fault for the accident and any resulting damages.

PRO TIP: While the minimum coverage for PIP is relatively low, you can always increase your limits. This will help protect your finances in an accident, even if you file a lawsuit against an at-fault driver.

While Minnesota’s no-fault insurance will cover medical expenses and lost wages to a point, there are exceptions.

Under Minnesota law, you generally have six months to file a no-fault insurance claim. There are exceptions to this guideline, which may require a factual analysis of each situation. 

f your insurance company denies your claim, you have six years from the accident date to contest and demand compensation. However, the sooner you get started, the better. Waiting too long will make it harder for your attorney to build a strong case and win fair compensation.

Minnesota’s no-fault claims process is designed to make it easy to get the compensation you need as quickly as possible. Here’s the step-by-step rundown.

Minnesota's no-fault insurance system ensures you receive quick compensation for medical bills, replacement services, and lost wages, but it has limitations. Depending on the circumstances of your situation, you may still need further compensation. Fortunately, Minnesota allows you to file a personal injury claim against an at-fault driver. Certain damages will require the following to be proved before proceeding against the at-fault driver:

• The accident resulted in over $4,000 in medical expenses
• The accident caused permanent injury or disfigurement
• Your injury caused disability lasting more than 60 days

Your attorney will help you prove the fault of the other driver and help establish your damages so you can recover fair compensation under Minnesota law.

Minnesota law mandates several types of insurance coverage for all drivers to ensure protection in case of an accident. As of 2024, the required minimum coverages are:

• Bodily injury liability: $30,000 per person and $60,000 per accident. This covers injuries to others if you are at fault in an accident.
• Property damage liability: $10,000 per accident. This covers damage to another party's vehicle if you are at fault.
• Personal injury protection (PIP): $40,000 per person, with $20,000 allocated for medical expenses and $20,000 for non-medical expenses such as lost wages and replacement services.
• Uninsured/underinsured motorist coverage: $25,000 per person and $50,000 per accident. This will cover your damages if you are ever involved in an accident with an uninsured or underinsured driver​.

While these are the minimum requirements in Minnesota, opting for higher limits to better protect yourself after an accident is generally recommended. It is not unusual for more serious accidents to involve uninsured or underinsured drivers, so adequate and higher limits are strongly recommended. 

While Minnesota’s no-fault insurance law will cover some of your damages after an accident, you may need legal assistance if:

• Your insurance provider denies coverage.
• Your PIP benefits won’t cover the full extent of your losses.
• You were injured in the accident.

At SiebenCarey, we can help you recover the total compensation you are entitled to under Minnesota law. We are the oldest law firm in the state, with a 70-year legacy of guarding the rights of thousands of Minnesotans just like you. When you trust SiebenCarey to represent you, you can rely on:

• Seven decades of proven experience
• Comprehensive resources to build your case
• an entire team of award-winning attorneys, paralegals, and certified investigators
• The “Know Your Rights” guarantee of genuine care and clear communication

We always contract on a contingency fee basis. That means that you only pay if we win your case — and when we do win, our fee will be a percentage of your compensation package. This gives you access to reliable legal representation with no financial risk.

Reach out to the SiebenCarey team today, and we’ll be happy to answer all your questions.