In no-fault states such as Minnesota, PIP (personal injury protection) insurance is a common topic of discussion with car insurers. PIP covers you and your passengers’ medical expenses resulting from an accident, as well as any related costs such lost wages. PIP is an important part of any insurance plan. It should be thoroughly researched, and carefully considered even if it is not required.
What is PIP insurance?
PIP insurance is often referred to as “no fault” insurance. PIP covers medical expenses, as well as any related costs, arising from injuries sustained by you or your passengers in an accident. Instead of forcing a driver to file a claim against another driver (or their insurer), PIP pays for these crucial costs quickly. Accident victims don’t have to file a lawsuit, or pay out of pocket for their initial expenses.
Your PIP insurance should not be confused with your liability coverage. This is intended to cover injuries and medical expenses incurred by other drivers involved in an accident. Comprehensive and collision coverage on your policy covers damage to property, but not personal injuries.
What is Minnesota’s PIP?
You should file your PIP claim immediately after an accident where injuries (or suspicions of injuries) have occurred. The insurance company will pay the insured’s damages. PIP is available in Minnesota.
- Medical expenses include hospitalization and surgery costs
- Ambulance charges
- Medications
- Rehabilitation services, including chiropractic services
- Corrective dental services
- Lost income
- Other expenses, such as child care
PIP coverage has a significant advantage. You can apply immediately for funds from your insurance to pay for medical treatment without having to settle or win a lawsuit against the other driver. PIP coverage can pay for transportation costs to the hospital and medical expenses, as well as lost income, in the event of an accident.
Minnesota requires PIP.
Minnesota is a no-fault state so PIP coverage must be purchased. Every driver must have their own insurance in order to pay for injuries sustained in an accident. PIP is an important form of financial protection in a state that is “no fault”.
Minnesota law requires drivers to have minimum PIP coverage. The minimum amount of no-fault coverage required is $40,000. This amount is payable to any person injured in an accident involving your vehicle. For medical expenses, $20,000 is allotted and $20,000 goes to non-medical costs.
Important to remember is that Minnesota drivers cannot sue another driver for negligence in an accident. The purpose of PIP laws is to ensure that most accidents are covered through PIP coverage, without the need for litigation. An accident victim can file a suit if the accident expenses exceed $4,000 or the victim is permanently or temporarily disfigured or disabled.
What is the cost of PIP in Minnesota?
In one respect, PIP is no different to other car insurance policies. Prices can vary greatly from one location to the next and from insurer to insurer. Premiums are also determined by other factors, such as driving records and age.
PIP coverage is typically less expensive than comprehensive, collision, and liability coverage. Pay attention to the effect of the deductible on your premium. A higher or lower PIP deductible can often have a significant effect on your premium.
Important points to remember about Minnesota’s PIP insurance
- Minnesota drivers must have PIP insurance.
- PIP is a state that pays no fault and mandates PIP coverage to help the state reach its goal of prompt payment for medical expenses without regard to fault.
- The PIP insurance covers a broad range of expenses beyond the medical expenses that are incurred due to an injury, such as lost wages, daycare required and death benefits.
- PIP insurance doesn’t cover pain and suffering.
Questions frequently asked
How do I file a PIP claim and when should I?
If you are in an accident, you can file a PIP case immediately. Make sure to ask about the necessary forms and procedures when you report the claim. You can usually do this online or by phone. You should also inquire about the time limit for filing a PIP claims with insurance companies.
Is PIP and medical payment the same thing?
There are some important differences. These payments cover your medical expenses as well as those of any passengers who are injured in an accident that occurs in your vehicle. While PIP includes medical payments, it also covers other documented losses like lost wages.
Are PIP payments required to be repaid through a settlement?
You are generally not entitled to a second recovery. You will need to repay any PIP funds you have received for the same losses or costs if you are awarded money in settlements or a favorable decision in a case.