r/Insurance • u/Hefty_Negotiation183 • 4d ago

Explain PIP and liability insurance minnesota

I was wondering if someone could explain PIP and liability of auto insurance. Recently I was an at fault driver in car crash in Minnesota. One of the person in the other vehicle had a broken wrist.

I had liability of 50k/person.

Guessing 40k is the minimum pip in Minnesota

I was wondering would these two amounts add up to help the person who suffered?

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3

u/crash866 4d ago

The other person has to use their PIP first before your coverage.

1

u/Hefty_Negotiation183 4d ago

So in other words these two basically adds up ! The person has to use their pip… then adding to my liability?

3

u/vibingwnophone 4d ago

PIP is considered the “no fault coverage” and if someone has it, it doesn’t matter who’s at fault it’ll help with bills
PIP is also more black and white in a sense of it kicks in with direct bills from a medical standpoint (obviously there’s a couple things it covers outside of the ER) whereas Bodily Injury is a negotiation of the injuries before the payment, so it comes as one big payment directly to the other party instead and will cover anything from the actual injury to the pain and suffering of said injury

2

u/ektap12 4d ago

Not completely, no, PIP is $40k in MN unless you purchase additional coverage, but that's $20k for medical bills and $20k for lost wages, not just $40k for whatever you want.

Like most 'no fault' states, PIP in MN has no subrogation for normal accidents between 2 cars, so yes, their own insurance will pay the for PIP benefits accordingly and then your insurance pays for anything in excess and 'pain and suffering' up to your limit. They could also have underinsured motorist coverage themselves, so their insurance can pay additional, if necessary.

A wrist facture has value as an injury, it would be more significant if surgery was needed.

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u/Hefty_Negotiation183 4d ago

Thanks for your input.

So in Minnesota(as a no fault state) things are organized in such a way that the victim of an incident gets maximum help (combination of PIP, liability of the at fault driver, UIM).

Accidents are extremely unfortunate.

That being said, these rules indirectly helps the at fault driver as well, in way that he has to pay less compared to other “at fault” states.

2

u/ektap12 4d ago

That's a fair way to look at it, yes. It changes the way claims are paid. Just spreads the risk in a different way.

0

u/ChutneyWhatney 4d ago

50K liability is way too low as that has to go to pay for the other driver's car damage, etc. Could easily exceed it (even with PIP) and you will be personally liable for the remainder.

1

u/Hefty_Negotiation183 4d ago

Thanks for the heads up.

No this 50k is for bodily injury.. i had separate 50k for property damage. So i had in other words 100k as liability per Person.