What are “No-Fault” Benefits?
If you are injured in a car accident, you are entitled to certain medical and wage loss benefits, regardless of who caused the accident. These benefits are called “no-fault” benefits, because it doesn’t matter who is at fault. Even if you caused the accident, you are entitled to no-fault benefits. No-fault coverage pays for your medical bills (up to $20,000) and a portion of your income loss (up to $20,000). The income loss you are paid is either $250.00 per week or 85%, whichever is less.
No-fault coverage also pays for medical mileage (for trips to and from your medical providers), re-training costs, replacement costs (if you need assistance from another person), funeral expenses, and a few other costs. Reimbursement of these expenses can involve significant time and paperwork. This is something our office can assist you with.
What confuses most people about “no-fault” benefits is that it is YOUR automobile insurance company that pays these benefits to you if you are injured, even if your car was not even involved in the accident. In other words, even if you were a passenger in someone else’s car, your own automobile insurance company pays your “no-fault” benefits. Although this doesn’t seem to make sense, the Minnesota legislature decided that since EVERYONE is entitled to no-fault benefits, the cost for no-fault insurance should be spread equally among automobile insurance companies by having each company pay for its own insured’s benefits.
What if I don’t own a car? You may be covered under an automobile policy of a relative you live with, or the policy of a car involved in the accident. To find out who is responsible for paying your no-fault benefits, contact our law firm.
Won’t submitting a claim for no-fault benefits increase my insurance premiums? No. An insurance company cannot increase your insurance premiums simply because you are making a claim for no-fault benefits. Your insurance rates will go up only if the accident was your fault.
What if I have health insurance – shouldn’t my health insurance pay my bills? By law, your automobile insurance company has to pay your medical bills under the “no-fault” coverage in your policy before your health insurance pays anything. If you exhaust the $20,000 in no-fault medical coverage, or if your automobile insurance company refuses to pay any of your medical bills, then your medical bills can be submitted to your health insurance company.
Can I see any doctor I want to? Yes. Unlike a lot of health insurance companies or HMOs, the no-fault laws do not limit you to treatment with certain doctors or medical providers. You can choose any doctor that you want to see for treatment of your injuries.
To provide you with more detailed information about your right to no-fault benefits and how to obtain them, please call our office and we’d be happy to discuss your rights with you
