What does Minnesota No-Fault and Personal Injury Protection really mean?

We’ve all been told Minnesota is a No-Fault state when it comes to auto insurance, right?  This is probably up there with the most misunderstood coverage that I get when people come talk to me, and I completely understand the confusion.  This coverage is not a Get Out of Jail Free card to use a Monopoly reference, in other words, it doesn’t mean you can hit someone else’s vehicle and drive off because Minnesota is a no-fault state, that is NOT what the coverage is.

What No-fault P.I.P. or Personal Injury Protection, on all Minnesota auto policies says is, if you are injured from an auto, you turn to your own auto insurance for the first $20,000 medical regardless of fault.  You could even be out for a walk and get hit by a car, and you would turn to your own auto insurance for your first $20,000 of medical expenses.


The coverage also includes work loss benefits of $20,000 (85% of your income to a max of $500/week), $5,000 life insurance and other expenses you may incur as a result of the auto accident.

When looking at your auto policy, check to see if you have a deductible on this coverage and if you see the word ‘Stacked’ right next to the coverage.  What ‘stacking’ does, is for additional premium, they will multiply the benefits listed above by the number of vehicles insured on the policy.  For example, if you have 3 cars insured on the same policy and you paid to have your benefits ‘stacked’, instead of the given $20,000 medical and $20,000 loss of wages, you would have $60,000 medical and $60,000 loss of wages (85% of your income to a max of $1,500/week).