Accident Victim's Legal Rights

Q. How And Why Were No-Fault Benefits Created?
A. Prior to 1974, people injured in automobile accidents paid for their medical bills and their wage loss only when their case was resolved, which in most cases took several years. In 1974, the Minnesota Legislature passed the Minnesota No-Fault Act. The Act provides that persons suffering injuries "arising out of the maintenance or use of a motor vehicle," regardless of their fault or innocence, could quickly and easily recover "economic loss" benefits from their own insurance company. No-fault insurance provides for payment of up to $20,000 in reasonable and necessary medical expenses and up to $20,000 in wage loss and replacement services. [Minnesota Statutes 65B.42 Purpose.]

Q. What Actions Are Not Covered Under the No-Fault Act? 


A. The No-fault Act does NOT cover the following: [Minnesota Statutes 65B.59, 60]

1. Injuries suffered while riding, mounting or alighting from a motorcycle.

2. Intentional injuries (unless the injuries are not intended by the victim).

3. Injuries suffered in the course of an official racing contest.

4. Vehicle owners who are not insured.

Q. What Are The Insurance Claims A Victim Has Following An Automobile or Truck Accident?

A.  There are 5 Insurance Claims:

Claim #1 No-Fault Benefits
Minnesota law requires that you collect up to $20,000 medical benefits and $20,000 for wage loss from your own insurance policy even if someone else is at fault.  Those payments are not automatic and you need to prove the need for the benefits. If you have more than one car, for only a few dollars more you can buy stacking which allow you to recover No-Fault benefits from two cars which doubles the amount of medical and wage loss coverage from $20,000 each to $40,000 you are entitled to collect. This is especially beneficial if a person does not have medical insurance.

No-Fault Medical Payments

No-Fault Wage Loss Payments

Claim #2 Bodily Injury (BI) Liability Claim Against the Person Who Injured You. 

Liability insurance covers the damages incurred by occupants of the other vehicle, if you are at fault. The minimal amount you can buy is $30,000.  If someone elses careless driving causes injury or death to you or a loved one, you have the right to make a claim against them for their negligence under their liability insurance.  Assuming the other driver has insurance coverage, the claim will be negotiated between their insurance company and your attorney. Sometimes the claim can be settled but other times a lawsuit must be filed and the case brought to trial before a jury.  If the at-fault party has no insurance, you must go to your own Uninsured Motorist Coverage policy to collect for your injuries.

In return for creating no-fault benefits, the Minnesota Legislature declared that no one could file suit against the person who caused the injury unless the injured person satisfied one of the following requirements called "Tort Thresholds": [Minnesota Statutes 65B.51]

1. Incurred medical expenses over $4,000; OR

2. Suffered from a permanent injury. A permanent injury is one from which it is reasonably certain a person will not fully recover. The injury may improve or worsen, but it will continue to some degree throughout claimants life; OR

3. Suffered from a permanent disfigurement, which is defined as that which impairs or injures the appearance of a person to a significant degree; OR

4. Suffered from a disability lasting more than sixty (60) days. The claimant must show that the injuries cause a substantial and significant interference with his or her work, home, and social activities for longer than 60 days, and a doctor must substantiate the claim; OR

5. Suffered death as result of the accident

Claim #3 Automobile Damage

Collision Insurance pays for the damages to your car no matter who is at fault.  The Minnesota Legislature has passed several rules relating to the insurance payments for auto damage. In this case, you can have the at-fault person's insurance pay for your auto damage or if they do not have insurance, you then work with your own insurance company to pay for your damage as long as you have purchased Collision Coverage.  If you have not purchased Collision Coverage, you will have to pay for your repairs or for a replacement vehicle out of your own pocket. 

State Regulation of Insurance Claims Practices - M.S.A. 72A.201:

Claim #4 Uninsured Motorist Benefits

If you are so unfortunate as to be hit by a motorist who is uninsured, your own uninsured motorist coverage pays for your damages. Your recovery is limited by the amount of coverage you purchased. Faris & Faris recommends that you buy at least $100,000 in uninsured coverage for a few extra dollars.  I

Claim #5 Underinsured Motorist Benefits

If your injuries are because of the fault of another driver and your damages exceed the other driver's liability coverage, you are allowed to claim the excess damages on your own underinsured policy coverage.

Other Insurance Claims:

Property Damage Insurance

This pays for damages to the other car and the owner's personal property if you are found to be the cause of the accident.

Comprehensive Insurance

Covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

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