WHY YOUR AUTO INSURANCE PAYS MEDICAL BILLS WHEN YOU WERE NOT AT FAULT
Many people understandably think if a car accident is not their fault, their auto insurance shouldn’t have to pay. However, Minnesota is a ‘No-Fault’ state. That means every person’s auto insurance pays their own medical bills. Your insurance will pay up to $20,000 no matter which vehicle is at fault. However, this does not mean your auto insurance rates go up for making a claim. MN law prohibits auto insurers from raising your rates for making a medical expense claim, unless the accident was at least 51% your fault. Our car accident lawyers are frequently questioned about this by people who call us.
Also, your car insurance coverage also automatically extends to any relative living with you. For example, your adult child who lives with you doesn’t own a vehicle is covered by your auto insurance. So, your insurance will cover them if they are injured while riding as a passenger in another person’s car. In fact, your insurance MUST cover them and No-Fault medical coverage cannot be paid by the car they were riding in. They are required to use your insurance first. Again, by MN law this will not increase your car insurance rates.
WHY WE HAVE NO FAULT INSURANCE IN MINNESOTA
The reason for these No-Fault insurance rules is to reduce the number of lawsuits. There are too many car accidents every year for the courts to determine which driver was at fault in every case. These No Fault rules mean fewer fights about who should pay medical bills in less serious cases. Your auto insurance automatically covers your medical bills regardless of fault.
However, No-Fault coverage is usually limited to $20,000 for medical bills. Anything over that is paid first by your own health insurance. Then, if the other driver is at fault, their auto insurance repays your health insurance. Also, the other driver’s insurance still must pay for damage to your vehicle, and possibly other compensation to you depending on the situation.
If you or a family member have been injured in a MN car accident that was not your fault, please call us and speak with an attorney. The initial consultation is free. We will explain the insurance issues to you for your specific situation and make sure your rights are protected.