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The No-Fault System in Minnesota


Auto insurance in Minnesota can protect you from the financial costs of an accident or injury. To obtain it, you need to have the proper coverage first. Auto insurance is required by law and your lender may also need coverage if you’re under a car loan.

Every policy for auto insurance will vary and have limitations on what it covers and to what extent. A policy may be canceled if you don’t pay your premium, fail to disclose certain important information, or misrepresent.

The state of Minnesota follows the no-fault system when it comes to auto insurance. The Minnesota No-Fault Automobile Insurance Act requires residents and nonresidents to maintain basic economic loss benefits and automobile liability coverage on the cars they own. The Act also requires nonresidents to maintain liability insurance coverage and personal injury protection (PIP) on any other owned vehicle whenever he or she drives this within the borders of Minnesota. Whether the latter policies be issued by an independent insurance agency, they are equally required.

If an individual is injured in an accident, the no-fault clause of the policy pays him or her within the stated limits for medical expenses, replacement services, and lost wages. These costs are paid no matter who is at fault. However, no-fault coverage applies only to expenses resulting from injuries sustained in the accident. Insurance companies will not cover all losses associated with the accident.

If you are planning to buy a new vehicle and have it registered in the state of Minnesota, be sure to comply with its auto insurance laws. Call Safechoice Insurance Agency today to know more. Our insurance agency in Rochester, Minnesota will readily help you out.

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