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If you live in or near Wayzata, MN, you may already be aware that Minnesota is one of just twelve states with a no-fault insurance system. But what does that mean for you as a driver and auto insurance policyholder?
At Pizano Insurance, we’ll be happy to review your policy with you and answer all your questions. But in the meantime, check out the following information on how no-fault insurance works in Minnesota.
What Is a No-Fault Insurance System?
The average person assumes that if they ever get into an auto accident, then the party at fault (along with their insurance provider) will automatically have to cover any injuries or damages. And you’d be right if you didn’t live in one of the few states that operates on a no-fault system.
But in no-fault states like Minnesota, your insurance provider covers your damages, whether the other party was at fault. Occasionally, extenuating circumstances may find one driver eventually looking at personal injury claims payable by the other’s insurance company, but that’s not how things typically go.
How Much Auto Insurance Do Minnesota Drivers Need?
By law, every driver in Minnesota must carry four different types of auto insurance to stay in compliance with the law.
- Standard liability coverage, as you would need in any state
- No-fault coverage (also sometimes called personal injury protection or PIP)
- Uninsured driver coverage
- Underinsured driver coverage
Together, those four types of protection cover you in the event of most possibilities. But your PIP will be what covers damages like medical bills, lost wages, and any replacement Wayzata, MN transportation that may be necessary while your damaged car is out of service.
Even so, it’s important not to assume that one insurance policy is as good as another. If you have questions about your plan or are in the market for a new one, call us at Pizano Insurance, and let us take the guesswork out of choosing!