What is No-Fault Arbitration?
Under Minnesota law, car accident disputes between an injured person and an insurance company should be resolved by mandatory arbitration if the case seeks less than $10,000 in damages on the date the lawsuit is filed. If the case seeks less than $10,000 in damages at the time of filing, an unlimited amount of post-filing claims can be added while still staying under the maximum limit. The Schmidt Salita Law Team has handled cases where the claim was as high as $60-$70,000 because of the accrual of post-filing claims.
The American Arbitration Association has been designated by the Minnesota Supreme Court as the administrator of Minnesota no-fault arbitration proceedings. The arbitrator is selected from a list of attorneys appointed by the Minnesota Supreme Court, under a selection process specified by the rules of arbitration governing Minnesota no-fault disputes.
Main Benefits of No-Faults Arbitration
There are many benefits of using no-fault arbitration. We’ve outlined some below:
- Arbitration is far less expensive than the other alternative, which is filing a lawsuit in District Court.
- Arbitration hearings are shorter than going to trial and can typically be conducted in a one-half-day proceeding. On the flip side, District Court jury trials last anywhere from 2-4 days.
- The rules of evidence are far more user-friendly in arbitration. For example, medical reports and records are admitted into evidence for arbitration, whereas the testimony of the doctors is required in District Court.
The American Arbitration Association reported that in 2016, 5,792 cases were filed for no-fault arbitration. Of that number, 54% of all cases proceeded all the way through arbitration and to a final award. Conversely, 37% settled prior to the arbitration hearing. The median number of days it takes to go from the lawsuit filing date to the filing of a damages award is 183 days.
The Schmidt Salita Law Team has over 70 years of experience in successfully representing the victims of car accidents in both District Court claims and no-fault arbitrations. Senior trial lawyer Douglas Schmidt was one of the first attorneys appointed by the Minnesota Supreme Court to serve on the committee that established the first set of rules for no-fault arbitration in Minnesota. Mr. Schmidt served as the draftsman of the first, second, and third editions of these rules. For nearly 20 years he served, by appointment of the Minnesota Supreme Court, as an arbitrator. Since then it is estimated that Mr. Schmidt has won nearly 2,000 cases – and therefore 2,000 successful awards – for his clients. He is recognized as the Leading Minnesota No-Fault Lawyer. He has been asked by the Minnesota Trial Lawyers Association and the Minnesota Association of Justice to lecture on the subject of Minnesota No-Fault Law and has authored numerous articles on the subject in legal publications.
The members of the Schmidt Salita Law Team are happy to meet with the victims of personal injury and or wrongful death to explain their rights under both the Minnesota No-Fault Insurance system and the “at-fault” system as well.
How Does No-Fault Car Insurance Work in MN?
Minnesota operates under a no-fault insurance system, which ensures that your own insurance company compensates you for medical expenses and lost wages following a car accident, regardless of who caused the crash. This type of insurance allows accident victims to get compensation quickly without needing to wait for a determination of fault.
Under this system, drivers are eligible for Personal Injury Protection (PIP) benefits, which include compensation for medical bills, lost wages, and other expenses like transportation for medical care. The goal is to simplify the process and reduce the need for litigation. However, in some cases, disputes over compensation amounts can arise, leading to arbitration as an alternative to a lengthy court battle. Minnesota’s no-fault arbitration rules ensure that disputes are resolved efficiently and fairly.
Is No-Fault Insurance Required in Minnesota?
Yes, under Minnesota law, carrying no-fault insurance is mandatory. All drivers must have a policy that includes Personal Injury Protection (PIP), liability coverage, and uninsured/underinsured motorist protection. This means that no one is legally permitted to drive in the state without these coverages in place.
At a minimum, you’re required to have $40,000 of PIP coverage per person, which is split between medical expenses ($20,000) and non-medical costs like lost wages ($20,000). Minnesota also mandates that drivers carry liability insurance to cover damages they might cause to others in an accident. Failing to maintain the required coverage can lead to penalties such as fines, suspension of your license, or even losing your vehicle registration.
What Will My Car Insurance Cover?
Your no-fault car insurance policy in Minnesota provides coverage for a range of expenses following a car accident, primarily focusing on medical costs, lost wages, and essential services you might need during recovery. This ensures that you’re financially protected after a crash, regardless of who was at fault.
Here’s a breakdown of what’s typically included:
- Medical Expenses: Covers hospital visits, surgeries, doctor appointments, medications, and necessary rehabilitation.
- Lost Income: If injuries prevent you from working, you can receive compensation for lost wages, usually up to a set percentage of your normal earnings.
- Replacement Services: Provides payment for someone to perform household tasks you can’t manage due to your injuries, such as childcare or housekeeping.
- Funeral Costs: In cases of fatal accidents, it helps with funeral and burial expenses.
It’s important to note that while these protections are comprehensive for injury-related costs, vehicle damage is not covered under no-fault insurance. For repairs to your car, you’d need additional collision or comprehensive insurance. For more detailed guidelines, refer to the Minnesota No-Fault Arbitration Rules.
Whom Will My Car Insurance Cover?
No-fault insurance extends protection to you, your passengers, and even pedestrians, ensuring that all parties involved in an accident receive the medical and wage-loss benefits they need. The coverage applies whether or not the accident was your fault.
Here’s a breakdown of who is covered:
- You as the Driver: Your PIP benefits automatically cover you whether you’re driving, riding as a passenger, or even if you’re a pedestrian hit by a car.
- Family Members: Any relatives living in your household are included under your policy, whether they’re in your car during the accident or injured as pedestrians.
- Passengers: Anyone riding in your vehicle at the time of the accident can claim PIP benefits from your insurance, provided they don’t have their own no-fault policy.
- Pedestrians: If a pedestrian is injured by your car and doesn’t have no-fault coverage, your policy will cover their medical bills and other costs.
Importantly, passengers and pedestrians with their own no-fault insurance will first turn to their own policies before accessing yours. This structure ensures that everyone receives the protection they need.
Is There a Time Limit to File a No-Fault Claim in Minnesota?
Yes, you have six months from the date of the accident to file a no-fault insurance claim in Minnesota. This time limit is critical—if you fail to file your claim within this period, you risk losing your eligibility for Personal Injury Protection (PIP) benefits.
While six months might seem like a long time, it’s advisable to report the accident and initiate your claim as soon as possible. Delays can complicate the process and may even provide your insurance company with grounds to deny your claim. Additionally, medical expenses and lost wages can add up quickly, so it’s in your best interest to act swiftly. Remember, the sooner you file, the sooner you can start receiving the financial assistance you need for your recovery.
If you’re seeking compensation for damages not covered by PIP, such as pain and suffering, Minnesota law typically allows you two years to file a lawsuit. For guidance specific to your situation, contacting an attorney can ensure you meet all necessary deadlines.
Contingent Fee Arrangements Available
The Car Accident Lawyers at the Schmidt Salita Law Team understand that the victims of personal injury are often dealing with financial issues due to medical bills, car damage, and lost wages and earnings. Most do not have the financial resources to pay for a lawyer on an hourly basis – especially for a really good lawyer. The answer to this dilemma is the contingent fee contract where the lawyer doesn’t get paid by the hour. Instead, the lawyer gets paid on a “commission basis” like a real estate agent, as a percentage of the settlement produced. The Schmidt Salita Law Team offers contingent fee contracts in most cases.
A Schmidt Salita Car Accident Lawyer will come to your home, or the hospital, for your initial visit. The Schmidt Salita Law Team strives to provide personal injury legal services with a personal touch to help the victims of personal injury through a very difficult time in their lives. Contact us today for a free consultation of your case.