How Does Personal Injury Protection Work in Minnesota?

Personal injury protection (PIP) insurance is required for all drivers in Minnesota. It covers the costs of your injuries in an automobile accident, regardless of who is at fault. It's also known as no-fault insurance, and Minnesota is a no-fault state. After an accident, PIP insurance covers medical expenses, lost income and expenses such as child care and funeral costs. Minnesota's minimum PIP insurance requirement is $40,000 per person per accident — $20,000 for medical expenses and $20,000 for nonmedical expenses.

What is covered with Minnesota PIP insurance?

Personal injury protection in Minnesota covers a broad range of costs related to injuries you sustain in an auto accident. This includes medical expenses, nonmedical economic losses and losses related to the death of someone covered by the policy.

Medical expenses covered by PIP

One of the key benefits of PIP insurance is that it allows you to seek and pay for medical care without having to reach a settlement with the other driver. PIP covers all reasonable expenses for necessary medical care as a result of any injuries from a car accident, such as broken bones, whiplash or head trauma. Under Minnesota law, reasonable care can include:

Lost income and household services covered by PIP

In addition to medical costs, PIP coverage will reimburse you for lost wages and the costs of household services you would normally provide. For lost income, it pays a maximum of 85% of your gross pay, up to $500 per week.

You'll also be compensated for replacement services, or chores and other unpaid household work you're unable to do as a result of your injury. This can include housekeeping, purchasing groceries and preparing meals, mowing and shoveling. Replacement services benefits pay up to $200 per week, and you can begin to receive them seven days after your accident.

Death benefits

If someone on your policy is killed in an accident, funeral and burial costs of up to $5,000 are provided by PIP insurance. In addition, surviving dependents (a spouse or children) can receive economic loss benefits of up to $500 per week and replacement services benefits of up to $200 per week. These benefits continue until the limit is reached or the family member is no longer considered a dependent, such as when a child turns 18.

What isn't covered by PIP insurance in Minnesota

PIP coverage does not include compensation for pain and suffering. It also excludes property damage, such as damage to your vehicle, which would be covered by the other driver's liability insurance or your own collision or comprehensive coverage.

How much does PIP insurance cost in Minnesota?

The cost of PIP insurance varies, based on the amount of coverage and the deductible. Increasing your medical expenses coverage from $20k to $30k increases the monthly cost of PIP by about 18%. However, increasing your deductible from $0 to $100 only lowers your insurance by a dollar or two per month, so we recommend eliminating the deductible if possible.

What is stacked PIP insurance?

If you own multiple vehicles, you can choose to stack your PIP insurance instead of getting separate policies. If you do, the sum of your PIP coverage will apply every time you drive any of your cars.

Insuring two vehicles with stacked PIP results in a 22% to 24% increase in your monthly costs over an unstacked policy, with a 100% increase in both medical and income loss limits. This makes stacked PIP a cost-effective way to boost your overall coverage.

When do I submit a PIP claim?

Your PIP insurance covers your own injuries, so it's best to make a PIP claim directly with your insurer, either online or by phone, as soon as possible after your accident — even if you have not yet been charged for medical care or aren't sure medical care is required. You must submit your initial claim within six months of the accident and send in any additional bills as you receive them.

Where to send your claim

When determining where to make your claim after an accident, the general rule is to file a claim with your own insurer. In addition, all relatives of yours who live with you and are not insured by their own policy — including your spouse, children and other minors living with you — are covered. Anyone else riding in your car at the time of the accident is also covered, so long as they don't have their own PIP insurance.

PIP insurance coverage limits in Minnesota apply per person.

If you don't have your own PIP insurance and were not riding in a car (say, you were on foot or on a bicycle), make the claim to the company insuring the car involved in the accident. If you're not eligible for this option, you may apply for PIP benefits from the Minnesota Automobile Assigned Claims Bureau (MAACB).