Who pays for car damage in no-fault states like Minnesota? In Minnesota, no-fault insurance laws are in place that can be confusing, particularly about liability and who pays for damages. As attorneys at Schmidt & Salita Law Team, we are here to explain to you how these laws work and who ultimately bears responsibility for vehicle repairs.
Yes, Minnesota is a no-fault state when it comes to auto insurance. What this means is that, following an accident, each driver’s insurance company covers their medical expenses and lost wages, no matter who caused the crash. Property damage, such as car repairs, falls under different rules.
As the Minnesota Department of Commerce explains, no-fault systems focus on PIP and leave liability coverage to take care of property damages. This makes all the difference when determining who will be responsible for paying to repair or replace your vehicle. Where Minnesota’s no-fault law does a better job in taking care of medical expenses and other economic losses – such as lost wages – disputes over vehicle repair often require additional explanation.
It is also important to understand that drivers in Minnesota must have minimum liability coverage for bodily injury and property damage. This minimum will provide $30,000 for injuries to one person, $60,000 for one accident, and $10,000 in property damage. These limits will give protection to all those involved in a car accident, though, in instances of high levels of vehicle damage, they might not be enough.
While Minnesota’s no-fault insurance simplifies medical claims, fault continues to play a huge role in determining property damage responsibility. Minnesota has employed a comparative negligence system wherein fault is assessed as a percentage among parties. For instance, one driver may be determined to be 75% at fault and the other driver is 25% at fault; payment obligations are divided accordingly.
In disputed fault cases, accident investigations, police reports, and witness statements become vital. Minnesota law requires liability insurance for all drivers and must cover at least $10,000 in property damage. This required coverage helps reduce payment disputes but does not relieve drivers of financial responsibility for their portion of the fault.
In disputed cases, experts in accident reconstruction may also be required, along with legal representation. Such instances are very common, and our firm has dealt with many to understand how to assemble and present persuasive evidence to defend your interests.
Even in a no-fault state like Minnesota, the at-fault driver’s liability insurance typically covers car damage. If another driver caused the accident, their insurance company should pay for your repair costs up to the policy limits. Conversely, if you’re partially at fault, your payout may be reduced by your percentage of fault under Minnesota’s comparative negligence rules.
You may also open a claim with your insurer regardless of fault if you have collision coverage under your insurance policy. This typically means paying the deductible, but repairs will likely be faster. Your insurance company will then try to get that money back from the insurance of the at-fault party via a process called subrogation.
Property damage claims can become complex when multiple vehicles or commercial entities are involved. For instance, if you’re struck by a delivery truck, the company’s commercial liability insurance may come into play.
If the other driver is uninsured or underinsured, your insurance may provide coverage. Minnesota requires all auto policies to carry a minimum amount of uninsured motorist and underinsured motorist coverage that can kick in when the at-fault driver doesn’t have enough insurance to pay for your damages.
UM and UIM coverage generally applies to medical expenses but, in certain cases, may also apply to property damage. For full protection, make sure your policy specifically covers this. The Minnesota Department of Commerce says drivers should periodically review their policies to ensure adequate limits for liability and UM/UIM coverage.
In addition, uninsured drivers who are at fault in a car accident can be held personally liable. While it is often impossible to collect damages from a person’s personal assets, if significant damages are outstanding it may be worth pursuing this avenue of compensation.
If you’re finding your way through the nuances of no-fault insurance or seeking compensation for car damages in Minnetonka, look to the Schmidt & Salita Law Team. With years of experience under our belt dealing with Minnesota’s legal system, we’ll ensure you understand what your rights are and get what you deserve. Contact us today for a free consultation.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Dean M. Salita, with more than 30 years of legal experience as a personal injury attorney.
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