How Minnesota’s No-Fault Insurance System Affects Your Personal Injury Claim

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June 25, 2025

If you’ve been in a car accident in Minnesota, you might hear the term “no-fault insurance” thrown around a lot. But what does it actually mean for you as an accident victim?

Minnesota is one of a handful of states that uses a no-fault auto insurance system. This system is designed to provide quick payment of medical bills and lost wages after an accident, regardless of who caused it. But it also limits when you can sue the at-fault driver. Here’s how it works and what it means for your personal injury claim.

1. What Is No-Fault Insurance?

No-fault insurance means that your own insurance company pays for certain losses after a crash, no matter who was at fault. These are called Personal Injury Protection (PIP) benefits.

In Minnesota, PIP covers:

Medical expenses (up to $20,000)
Lost wages (up to $20,000)
Mileage for medical travel
Replacement services (e.g., household help)

2. When Can You Step Outside the No-Fault System?

You can pursue a claim against the at-fault driver only if your injuries meet certain legal thresholds:

Over $4,000 in medical expenses
Permanent injury or disfigurement
Disability for 60+ days

Once one of these thresholds is met, you may be eligible to file a personal injury lawsuit for additional damages like pain and suffering.

3. Common Misunderstandings

Many victims believe:

They can’t sue if they have no-fault insurance (not true)
They don’t need legal help for a no-fault claim (often not true)
Their insurance will always pay fairly and promptly (not always true)

4. Why You Might Still Need a Lawyer

Even with no-fault benefits, complications can arise:

Denied or delayed payments
Disputes over injury severity
Low settlement offers

A personal injury attorney can help ensure you get the full benefits you deserve and determine if you’re eligible for a third-party claim.

Final Thoughts

Minnesota’s no-fault system offers important protections, but it doesn’t eliminate your rights to fair compensation. Knowing how it works—and when to seek legal help—can make a big difference.

If you’re looking for a Personal Injury Lawyer in Minneapolis, Perron Law Office is the most trusted name in the Twin Cities area. Simply reach out on (651) 317-8133 to schedule your free consultation.