If I get involved in an accident here in Minnesota where the other driver has no car insurance, will my insurance company pay the damages? What if the costs incurred exceed the limits on my coverage?

Jill

Minneapolis, MN

Minnesota observes the no-fault act. This means that following an accident, individuals involved will have to file claims against their own insurance companies initially for benefits. This law has been adopted to minimize long court battles to determine who is at fault and who needs to shoulder the liability after the accident. Having the no-fault act also means that all motorists are required to obtain the no-fault insurance policy. This type of coverage actually means having Personal Injury Protection (PIP) where an amount up to $20,000 pays for bodily injuries and another $20,000 for funeral expenses and lost wages. Having this type of insurance coverage hinders the ability of a driver to sue the other. However, if medical costs exceeded the limit, the other driver reserves the right to sue the at-fault driver to pay any remaining amount that the PIP cannot cover.

Motorists who have extensive health insurance elect to have the minimum PIP policy. Make sure to read the declarations page on your car insurance policy. If excess medical expenses are stated then you will have to look to your health insurer first. Any amount remaining will be shouldered by your car insurance company. In your case, if you get hit by an uninsured driver, your PIP insurance will definitely assist you financially. But if costs exceed those stated in your coverage limits, then you can sue the other driver for the remaining amount.