Frequently asked questions
Text by Theodore J. Smetak, Esq.
with permission from the Insurance Federation of Minnesota
The No-Fault Act requires automobile owners to provide insurance coverage
against certain economic losses resulting from automobile accidents. These benefits
are referred to by various terms, such as Personal Injury Protection (PIP) benefits, basic
economic loss benefits or simply "No-fault benefits". The purpose of PIP
benefits is to reimburse certain economic losses resulting from automobile accidents
without regard to questions of fault.
WHAT DOES PIP PAY?
Minnesota requires a minimum of $40,000 of "Personal Injury Protection"
benefits for any one person injured in an automobile accident. This consists of
$20,000 of medical benefits and $20,000 of non-medical benefits.
WHAT DOES THE $20,000 MEDICAL EXPENSE
All reasonable expenses for necessary medical care, including transportation and
Semi-private hospital room rates. Remedial treatment. Religious treatment for
Rehabilitation and occupational training.
WHAT DOES THE $20,000 NON-MEDICAL COVERAGE INCLUDE?
In the event of injury:
Disability income loss, replacement services loss
In the event of death (and occurring within one-year after the accident):
Funeral expenses up to $2,000.
Survivors economic loss and survivors replacement services losses.
ARE THERE WEEKLY LIMITS ON PIP BENEFITS?
Yes. Disability income loss benefits are capped at $250 per week.
Replacement services, survivors economic losses and survivors replacement service benefits
are each capped at $200 per week.
WHO HAS A RIGHT TO PIP BENEFITS?
Generally speaking, everyone injured in the state of Minnesota in an automobile
accident (or as a pedestrian struck by a motorcycle) has a right to PIP benefits.
Anyone insured under a Minnesota automobile insurance policy also carries PIP coverage
with them throughout the United States.
WHERE DO I GO TO MAKE A CLAIM FOR PIP BENEFITS?
The rules set out in the No-Fault Act determine which insurer must respond to
each particular claim.
The rules select among the following insurance sources:
||The injured person's own insurer where he/she is "insured",
either by name or as family member of the named insured;
||The insurer of a vehicle involved in the accident;
||The Minnesota Automobile Assigned Claims Bureau (MAACB).
If an injured party qualifies for PIP, but there is no insurer available to him/her under
the rules, the injured person may be able to go to the MAACB for PIP coverage.
IS THERE A GENERAL RULE WHICH TELLS ME WHERE I SHOULD MAKE
MY PIP CLAIM?
The general rule is that everyone should first look to their own insurance
company, where they are an "insured" for PIP. If they do not have any PIP
insurance, the general rule is that they should submit their claim to the insurer of the
motor vehicle they were riding in. If there is no such insurer, then they may
attempt to qualify for PIP from the MAACB.
I DO NOT HAVE MY OWN POLICY AND I DO NOT LIVE WITH ANYONE WHO DOES.
I WAS INJURED BY A CAR WHICH WAS NOT INSURED. WHERE DO I GO FOR PIP BENEFITS?
Under the general rule, you can submit your claim to the insurer of the car you
were in. If that car had no insurance, and if you did not own the car which was not
insured, you can submit your claim to the Minnesota Automobile Assigned Claims Bureau
WHO IS COVERED UNDER THE MAACB?
Generally, the MAACB provides PIP benefits to those who otherwise qualify for PIP
benefits but who have no insurer available to present a claim to. The MAACB does not
provide PIP benefits to those persons who owned a vehicle but failed to insure it.
The MAACB handles claims for PIP benefits when:
||The injured person did not own a vehicle of his/her own, and is not an
"insured" for PIP benefits anywhere else.
||The injured person is unable to collect PIP benefits from the vehicle
he/she was riding in in the accident because the other vehicle was not insured.
For more information:
"No-Fault Auto Insurance in Minnesota - It's the Law"
an in-depth question and answer guide to Minnesota's No-Fault Law
Insurance Help Line
Insurance Federation of Minnesota
750 Norwest Center
55 Fifth Street East
St. Paul, MN 55101-1764
Metro: (651) 222-3800
Outstate: (800) 642-6121
Call Monday-Friday 9:00 AM - 3:00 PM
Sunday, October 18, 2010
©2001 Minnesota Automobile Assigned Claims Bureau
Information regarding this website can be directed to the
It is not the purpose of any statement in this website to interpret
the application of benefits under the law in any individual case, and
should not be considered legal advise.