Every driver in Minnesota needs proof of insurance to register their vehicles. However, some people will cancel their policies after registering their vehicle or renewing the registration. Others may fall behind on bills and forget to send a payment to the insurance.
Whether through intentional actions or oversight, there are drivers in Minnesota that don’t have active policies on their vehicles. What happens to you after a crash caused by someone without a policy?
Your no-fault insurance helps protect you
Minnesota requires two different kinds of motor vehicle insurance. Every driver needs to carry liability protection that reimburses other people affected by a crash. Drivers also need to have no-fault coverage to protect themselves and the occupants of their vehicles.
Minnesota requires at least $40,000 worth of no-fault personal injury protection (PIP) coverage. $20,000 of that goes toward hospital and medical expenses, and the remainder goes toward non-medical costs like lost wages. If you only pay for the minimum amount of coverage, you can potentially seek up to $20,000 from your own policy for lost wages because of your injuries.
You also need to have at least $25,000 in uninsured and underinsured motorist protection. That extra coverage can also help supplement your PIP coverage. If you have collision coverage, that can help you cover the cost of repairs to your vehicle or the expense of buying an entirely new one.
What if you have extensive losses?
There are definitely situations that arise where even after making a claim against their own no-fault and collision coverage, a driver still has unpaid bills. The other driver should have carried at least $30,000 in liability coverage for the injuries they caused you. Their lack of coverage will directly affect how much compensation you receive for the crash.
If you find yourself in this unfortunate scenario, you may need to consider bringing a civil lawsuit against the driver who caused the crash. Given that they don’t have insurance coverage, you could potentially hold them accountable for all of your uncovered losses, so long as their negligence or illegal driving habits caused the crash. Understanding what happens after an uninsured driver hits you could help you handle the situation appropriately.