How Does Personal Injury Protection (PIP) Car Insurance Work in Minnesota?

How Does Personal Injury Protection (PIP) Car Insurance Work in Minnesota?

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Personal injury protection (PIP) insurance 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. PIP insurance covers medical expenses, lost income and expenses, such as child care, that result from an injury in a car accident. 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 receive 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 you sustained in a car accident, such as broken bones, whiplash or head trauma. Under Minnesota law, this can include:

  • Medical services
  • Surgery
  • Medication
  • Dental services
  • Chiropractic services
  • Rehabilitation
  • Prosthetics
  • Transportation to medical care
  • Hospital stays

Lost income and household services costs 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 gross pay up to $500 per week.

For example, if you make $500 per week (or $26,000 annually), you'll receive $425 per week until you are well enough to return to work or you reach your policy limit. If you make $588 per week or more (or $30,576 annually), you'll receive $500 weekly. If you resume working, even part-time, any amount you earn will be subtracted from the payout you receive from PIP coverage.

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 benefits. Survivors can receive economic loss benefits of up to $500 per week and replacement service loss 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. In our research, we found that increasing your medical expense coverage by 50% increases the monthly cost of PIP by about 17%. However, reducing your deductible from $0 to $100 only impacts your insurance by a few dollars per month, so we recommend eliminating the deductible if possible.

Medical Expense Coverage
Medical Expense Deductible
Lost Income Coverage
Lost Income Deductible
6-Month PIP Cost
$20,000$0$20,000$0$124
$20,000$100$20,000$100$123
$30,000$0$20,000$0$146
$30,000$100$20,000$100$144

What Is stacked PIP insurance?

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

For example, if you own two cars and stack PIP coverage with a $20,000 limit, your coverage limit for both medical and nonmedical would be $40,000. This effectively multiplies your coverage by the number of vehicles you own.

In our research, we found that insuring two vehicles with stacked PIP results in a 21% 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.

Medical Expense / Lost Income Coverage (Listed)
Stacked?
Medical Expense / Lost Income Coverage (Effective)
6-Month PIP Cost
$20,000 / $20,000No$20,000 / $20,000$240
Yes$40,000 / $40,000$298
$30,000 / $30,000No$30,000 / $30,000$283
Yes$60,000 / $60,000$344

When do I submit a PIP claim?

Your PIP insurance covers your own injuries, so you should make a PIP claim directly to your insurer, either online or by phone. It's best to begin the claims process as soon as possible after your accident, even if you have not yet been charged for medical care or you're not 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 to 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.

For example, if you and someone on the same policy in your car are both hospitalized and accrue medical bills of $11,000 each, all $22,000 would be covered by PIP insurance.

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

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