Minnesota is a no-fault state for car insurance purposes and buyers need to be aware of this fact then deciding how much coverage to buy. This means that when a car accident occurs, claims for injuries and damages incurred are handled by that person’s insurance company directly. Injured people do have the right to sue for damages following an accident, but this option is only available in the case of a serious accident.
Under state law, car insurance buyers must have at least $40,000 in Personal Injury Protection (PIP) coverage in place. This part of the policy provides coverage for “reasonable and necessary” medical expenses following a car accident. The $40,000 limit may sound like a lot of protection, but keep in mind that health care costs are continuing to rise over time. If you were seriously injured in an accident or there were multiple victims in your vehicle, it won’t take long for you to use up your available coverage.
Before making a decision to buy only the minimum amount of PIP required by law, consider whether you have a good health insurance plan in place that can pay for medical expenses following an accident. If you already have a good level of coverage in place through your employer or a private plan, you may be able to get away with limiting your coverage to the minimum amount required by law.