Auto Insurance
Auto insurance in Minnesota combines tort liability, no-fault benefits, and uninsured and underinsured motorist coverage. The exam tests minimum limits, PIP, the tort threshold, UM and UIM, and priority of coverage.
Required coverage
Minnesota requires liability limits of at least $30,000 per person, $60,000 per accident, and $10,000 for property damage. Owners must carry personal injury protection under the No-Fault Act, Minn. Stat. §65B.41 et seq. PIP pays medical expenses and income loss without regard to fault, subject to statutory minimums and policy limits. Uninsured and underinsured motorist coverage must be offered; UM and UIM respond when the at-fault driver has no or insufficient liability coverage.
No-fault and tort
PIP is primary for economic loss; the tort system handles noneconomic loss and economic loss above no-fault limits. Minnesota's tort threshold is met by more than $4,000 in medical expenses, 60 days of disability, permanent injury, or death.
Worked example
Insured A has 30/60/10 liability and $20,000 PIP medical. A is injured by an uninsured driver. A's PIP pays medical bills up to $20,000. A's UM coverage then responds to noneconomic damages and excess economic loss, subject to the UM limit and the tort threshold. PIP does not pay pain and suffering.
Traps
Do not stack PIP across vehicles unless the policy and Minnesota law allow it; do not assume UIM equals UM; and do not apply the tort threshold to a PIP claim.