Minnesota requires all drivers to have several types of auto insurance, including personal injury protection (PIP), liability insurance, uninsured motorist coverage, and underinsured motorist coverage. Understanding what each of these types of insurance covers and when to use them is critical for making the most of your Minnesota car accident claim.
Personal Injury Protection (PIP)
You can think of personal injury protection insurance as your first line of defense following a car accident. This is a form of first-party, no-fault insurance, meaning that you file your claim with your insurance provider, and you do not have to prove that someone else was at fault for the accident to receive compensation.
In Minnesota, the minimum required amount of PIP insurance is $40,000 per accident. Of this, $20,000 can be used for medical costs, while the remaining $20,000 can be used for non-medical expenses, including lost wages. Additionally, if someone in your vehicle sustained fatal injuries, PIP provides $2,000 for their funeral expenses.
Notably, PIP does not provide compensation for property damage or intangible losses suffered because of the accident. Intangible losses are the negative effects of the accident that don’t have explicit value, including pain and suffering.
Liability Insurance
Liability insurance is used when you need to seek compensation beyond what your PIP policy provides, or when you need compensation for property damage. It is a third-party, fault-based type of insurance, meaning you file your claim with the other party and must show that they were at fault for the accident.
Minnesota requires that all drivers have the following liability coverage:
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $10,000 per accident for property damage
Having liability insurance is also vital because it protects you from being personally liable if another driver files a claim against you after an accident.
Uninsured Motorist Coverage
Uninsured motorist (UM) coverage is first-party insurance that provides compensation when you need to file a claim against the at-fault driver, but they don’t have liability insurance. It allows you to still recover the compensation you need for medical expenses, lost wages, property damage, pain and suffering, and other losses.
Unlike PIP insurance, UM coverage is not no-fault insurance. You must still demonstrate that the other party was primarily responsible for the accident and your injuries or property damage.
UM coverage also applies in cases of hit-and-run. If the at-fault driver flees the scene and cannot be identified, they effectively have no liability insurance because you have no way of filing a claim against their policy.
Underinsured Motorist Coverage
Underinsured motorist (UIM) coverage is another type of first-party insurance. It provides additional compensation when the at-fault party’s liability insurance isn’t enough to cover your expenses.
Many Minnesota drivers, as well as drivers from out of state, only carry the minimum required amount of liability insurance. If you are in a serious accident and sustain severe injuries, this minimum coverage likely won’t be enough to cover your expenses. UIM coverage protects you from having to pay out-of-pocket for anything the at-fault driver’s insurance doesn’t pay for.
Contact Our Minnesota Car Accident Lawyers
If you were involved in a Minnesota car accident, don’t let the insurance companies take advantage of you with lowball settlement offers. Our law firm will protect your rights and fight back against the tactics insurance providers use.
Contact Carlson & Jones, P.A., for a free consultation with an experienced car accident attorney. One of our lawyers will review your case and help you explore your options for seeking compensation through a Minnesota auto insurance claim.