No-Fault Law Basics

Minnesota is a “no-fault” state. This means that generally your own automobile insurance company is obligated to pay for your medical treatment. Basic no-fault policies provide for $20,000 coverage for medical bills, including x-rays, diagnostic tests, prescriptions, therapy, chiropractic and other forms of treatment.

Basic no-fault policies also provide up to $20,000 coverage for wage loss if, as a result of your injuries, your doctor certifies that you are disabled to work. The amount of payment is somewhat limited by Minnesota law. The disability amount is calculated by multiplying your weekly wage by 85 percent. The maximum amount payable under law is $500.00 per week.

Even though the typical Minnesota no-fault insurance policy has coverage for $20,000 in medical bills and $20,000 for wage loss benefits, many times your insurance carrier will want a doctor of their choice to examine you. This examination is the so-called “Independent Medical Examination” (IME).

The doctor selected by the insurance company is not a doctor who will treat you for your injuries. The insurance company hires this doctor for the sole purpose of giving the insurance company a report concerning the reasonableness, necessity and relatedness of your treatment. The insurance company can then cut off your benefits.

Despite this unfair treatment, if you incur bills after they cut you off, there is still a method of obtaining reimbursement of bills, wage loss and expenses. These cases can be negotiated or arbitrated through the American Arbitration Association.  ​