No-Fault
coverage is widely misunderstood. Many drivers believe that their insurance
company will cover ALL losses in an accident, regardless of who is at fault.
But “no-fault” coverage applies ONLY to expenses resulting from injuries
sustained in an accident. Here are some other facts about no-fault:
No-fault
is a Minnesota law. It was established to help ease the burden of courts and to
ensure prompt treatment for accident victims.
No-fault
IS the Personal Injury Protection (PIP) on your policy, sometimes referred to
as Basic Economic Loss Benefits.
No-fault
covers your medical costs, wage loss, replacement services such as
housekeeping, and in the event of death, $2,000 of funeral expenses.
No-fault
claims are first made on your own PIP. If expenses then prove greater than the
PIP limit on your policy, or you attain specified thresholds, you may make a
claim against the other driver’s liability coverage if the other driver is
found to be liable.
Minimum
no-fault coverage is $40,000. That amount is available to each person injured
in an accident; $20,000 is allowed for medical expenses and $20,000 may be used
for non-medical expenses.
Coverage
beyond these minimum amounts may be purchased. No-fault usually does not apply
to accidents when you are riding your motorcycle or snowmobile. You must
purchase a separate insurance policy covering these vehicles, and the policies
will not include personal injury protection. PIP coverage for snowmobiles or
motorcycles can, however, be purchased separately.
No-fault
claims must be made within six months of the accident. You must include proof
of expenses, complete an application for benefits, and submit to a medical
examination if requested. Bills should be submitted to the insurance company as
they come in