Personal Injury Protection (PIP) in Minnesota Explained

Since Minnesota is one of 13 no-fault states, drivers must have a minimum limit of the first-party medical benefit (FPMB) called personal injury protection (PIP) on their policies. The law mandates this coverage so drivers can rely on their own coverage for the medical expenses they incur in an accident, regardless of who caused it. 

Let’s check out how much PIP Minnesotans must carry, what expenses PIP may cover, and why it’s required on every Minnesota car insurance policy.

PIP is a no-fault coverage that helps the policyholder cover the medical expenses they incur in an accident, regardless of who was at fault. Car insurance in Minnesota is required by law, and part of the legal requirement for drivers is to carry a minimum limit of PIP. 

Drivers may use PIP to cover up to $40,000 of their medical expenses. The $40,000 limit is split into two categories. Half of one’s PIP, or $20,000, is allocated for immediate medical expenses like:

The other $20,000 is set aside for long-term, related medical expenses, like loss of wages, child care, or long-term home care. A driver may access their PIP funds once they reach the deductible on their policy.

While the North Star State is a no-fault state, drivers must also carry a few tort or at-fault coverages on their policies. Auto insurance laws in the state require drivers to have at least $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (30/60/10), $25,000 in uninsured and underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and $40,000 in PIP. 

Those who finance or lease their vehicles may also be required to have collision and comprehensive coverage. 

Driving without insurance in the North Star State is illegal and can result in severe legal penalties like fines, license and registration suspension, or even jail time. Serious financial consequences come with the crime, too, like a significant increase in insurance premiums for several years due to one’s status as a high-risk driver in the state or having an SR-22 form on file following the traffic incident. 

Maintaining a sufficient amount of PIP is not only legally necessary but also necessary for one’s safety. Since PIP covers the policyholder’s medical expenses incurred in an accident regardless of who’s at fault, it may be the only coverage some drivers have for their own accident costs. 

Drivers with minimum coverage policies may only have coverage for the other driver’s accident expenses should the policyholder be considered at-fault in an accident (liability coverage), and coverage for their own medical expenses should the at-fault driver be uninsured. While a minimum coverage policy will often be the cheapest policy in the state, it may not always be the safest or most inclusive.

In Minnesota, PIP coverage is legally necessary, as each driver must have a minimum limit of at least $40,000 of coverage on their auto insurance policy. When the coverage is invoked, it’s split into two categories: $20,000 of coverage for immediate medical expenses and $20,000 for related, long-term medical expenses. 

For some drivers, this limit sounds like more than enough coverage. However, other drivers may prefer additional coverage for their medical expenses, especially those immediate costs. Drivers in the North Star state who prefer a wide range of coverage often opt for a full coverage policy instead of a minimum coverage one. 

Luckily, Minnesota is one of the country’s cheapest states for auto insurance despite its mandatory PIP. The average full coverage policy in Minnesota costs about $1,550 annually, or about 10% less than the national average of $1,670 annually. While a full coverage policy is more expensive than a minimum coverage one, binding a policy with one of the top insurers in the state is an excellent way to lower one’s premiums without sacrificing coverage.

While drivers in the North Star State must have at least $40,000 in PIP, they can’t opt for more beyond that limit. In some no-fault states, insurers offer a FPMB called medical payments coverage (MedPay) that can supplement PIP, but insurers in Minnesota don’t offer MedPay. MedPay and PIP are very similar, except PIP covers long-term medical expenses, while MedPay generally only covers immediate medical costs. 

Drivers in Minnesota who invoke their PIP must submit proof of their injuries and may only receive their insurance benefits if their injuries are deemed “severe” by their insurer or medical staff. Once their claim is approved, drivers must reach their deductible before receiving their PIP funds. 

In Minnesota, the PIP statute of limitations is six years after the incident to file a claim. Within this time, drivers can submit their claim to their insurer to pay for any medical expenses or debts they incurred following an accident. 

Generally, it’s better to file a claim sooner rather than later. If a driver needs to pursue legal action with the at-fault party or needs immediate, critical medical attention, it’s more effective to file a claim as soon as possible than years following the incident. 

In Minnesota, personal injury protection, or PIP, is required as a facet of the state’s no-fault law. Generally, states with no-fault laws require drivers to carry coverage for their own medical expenses to speed up the claims process following accidents.

Typically, states adopt no-fault laws if there’s an above-average population, population density, or population of uninsured drivers. Minnesota is a bit of an anomaly there, as it ranks average in each category. 

States with high numbers in those categories adopt no-fault laws to relieve the burden placed on the insurance and legal systems by an influx of accidents, claims, and civil action. While Minnesota may have an average population, population density, and population of uninsured drivers, the court and insurance systems were likely overwhelmed with claims, necessitating relief. 

Whether you’re looking for a policy with more PIP than is legally required, searching for a policy in the North Star State for the first time, or curious if you qualify for lower rates with a different insurer, the best way to see all the policies you’re eligible for is to get and compare quotes online. 

By comparing multiple quotes online, you can find a policy that best meets the needs of your lifestyle and budget. 

You’re in luck – you’ve come to the right place for quotes. Here at Clovered, we have a free quoting tool you can use to get and compare quotes faster than your neighbor will share their county-fair winning recipe for Booyah stew. If you’d rather chat with a pro, you can contact one of our licensed agents at 833-255-4117 or [email protected].