Even if you are among the most careful drivers in Minnesota, you are susceptible to being injured in an accident because you cannot control other motorists who share the road with you. If a driver who causes an accident is uninsured or underinsured, it is important to realize that you still have means to recover compensation for lost property, medical costs, lost income and other expenses. Many Minnesota drivers do not know their options.
By law, a licensed vehicle in Minnesota must have:
- Liability insurance
- No-fault insurance (also known as personal injury protection or PIP coverage)
- Uninsured motorist insurance
- Underinsured motorist coverage
Not Everyone Follows The Law
In theory, if a licensed vehicle is on the road, it is insured. Unfortunately, not every driver in Minnesota follows the law. According to the Insurance Research Council, One out of 10 motorists in Minnesota is uninsured. Many more are underinsured. (Twenty-seven other states have higher rates of uninsured motorists, led by Oklahoma, Florida and Mississippi.)
If you are injured in an accident, your no-fault insurance and underinsured motorist coverage can prevent you from suffering a significant financial hit.
Understanding No-Fault and Uninsured Coverage
No-fault insurance covers any medical costs, wage loss and replacement services such as yard services or housekeeping necessary while you are injured, subject to weekly limits. In the event of death, no-fault insurance covers $5,000 of funeral expenses. If expenses exceed these limits, you may make a claim against the at-fault driver’s liability coverage.
In Minnesota, minimum no-fault insurance coverage is $40,000. Each person injured in an accident can collect up to $20,000 of no-fault insurance for medical expenses. Each person can also collect up to $20,000 for non-medical expenses. Coverage beyond the minimum amount of $40,000 can be purchased when you purchase your insurance policy.
Uninsured or underinsured coverage pays for medical expenses after you have exhausted your own policy’s no-fault limit of $20,000 if the at-fault party is not insured or not sufficiently insured.
Don’t Fully Understand It? That’s Why We’re Here
If coverage limits and liability questions leave your head spinning, you’re not alone. If you are injured in an accident in Minnesota or Wisconsin, it is always a good idea to speak with an experienced personal injury attorney like those at Klampe Law Firm in Rochester as soon as possible after your accident.
There is no guarantee that your own insurance company will protect your best interests and help you understand all of your rights. Our personal injury attorneys advocate for you, whether that is with an at-fault party’s insurance representatives or your insurance carrier. Protect yourself by calling Klampe Law Firm.