Short answer: Minnesota requires basic economic loss benefits of at least $40,000 per person: $20,000 for medical expenses and $20,000 for lost income, replacement services, funeral and survivor losses. These pay regardless of fault. You can sue for pain and suffering only if medical expenses exceed $4,000 or the injury is permanent, disfiguring, fatal or disabling for 60 days or more.
What no-fault means in Minnesota
Minnesota's No-Fault Automobile Insurance Act requires every owner of a registered vehicle to maintain a "plan of reparation security" (Minn. Stat. §65B.48). Your own policy pays your economic losses after a crash, even if you caused it. In exchange, small injury claims stay out of court.
The $40,000 split
Minn. Stat. §65B.44 sets the minimum basic economic loss benefits per person:
| Benefit | Minimum |
|---|---|
| Medical expense | $20,000 |
| Income loss, replacement services, funeral, survivor losses (combined) | $20,000 |
| Total | $40,000 |
Within the non-medical $20,000, the statute caps specific items:
- Income loss: 85% of gross income lost because you can't work, up to $500 per week.
- Replacement services (household tasks you can't perform): up to $200 per week, excluding the first seven days.
- Funeral and burial: up to $5,000.
- Survivors' economic loss: up to $500 per week.
The medical portion must cover reasonable and necessary care, and the statute bars insurers from paying less than those benefits through preset limitations.
No-fault pays first
Under §65B.61, basic economic loss benefits are primary over other sources, with an exception for workers' compensation. If you're hurt in a crash while working, workers' comp generally comes first, and the statute requires a premium adjustment where it does.
When you can sue the other driver
No-fault doesn't eliminate lawsuits; it sets a threshold for "noneconomic detriment," meaning pain, suffering and similar losses. Minn. Stat. §65B.51 lets you pursue those damages only if:
- your reasonable medical expenses exceed $4,000 (not counting diagnostic X-rays or rehabilitation-only treatment); or
- the injury results in permanent disfigurement, permanent injury, death, or disability for 60 days or more.
"Disability" here means being unable to perform substantially all of your usual daily activities. Economic losses above your no-fault benefits can still be pursued against the at-fault driver.
The rest of the required policy
Minnesota's mandatory coverage goes beyond no-fault. §65B.49 requires:
| Coverage | Minimum |
|---|---|
| Bodily injury liability | $30,000 per person / $60,000 per accident |
| Property damage liability | $10,000 per accident |
| Uninsured motorist | $25,000 per person / $50,000 per accident |
| Underinsured motorist | $25,000 per person / $50,000 per accident |
UM and UIM must be provided as separate coverages. Compare these figures with other states in our car insurance minimums by state table.
Fault still matters
Once a claim crosses the threshold, Minnesota's comparative fault statute, §604.01, applies. You may recover only if your fault was not greater than the fault of the person you're suing, and your damages shrink by your share.
Situations
You rear-end someone and break your wrist. Your own no-fault benefits pay your medical bills and part of your lost wages, regardless of fault.
A driver runs a red light and you rack up $6,000 in treatment. Medical expenses exceed $4,000, so you may pursue pain and suffering against that driver.
You miss work for three months after a crash. Income loss pays 85% of gross income lost, up to $500 a week, until the combined $20,000 non-medical limit is used.
You're injured on a delivery route for your employer. Workers' comp generally pays before no-fault.
Choosing more than the minimum
Ask what optional higher limits are available for no-fault benefits, liability, UM and UIM. If your earnings exceed what $500 a week replaces, extra income-loss protection deserves a look.
Bottom line
Minnesota's no-fault system pays your own losses quickly, up to the statutory minimums, and keeps smaller injury cases out of court. Know the $4,000 and 60-day thresholds, and buy limits that fit your income and assets.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Minnesota and auto insurance.
Frequently asked questions
How much no-fault coverage is required in Minnesota?
At least $40,000 per person: $20,000 for medical expense and $20,000 for income loss and other economic losses.
When can I sue after a car accident in Minnesota?
For pain and suffering, when medical expenses exceed $4,000 or the injury causes permanent injury, disfigurement, death or 60+ days of disability.
How much lost income does Minnesota no-fault pay?
85% of lost gross income, up to $500 per week, within the $20,000 non-medical limit.
What liability limits are required in Minnesota?
30/60/10, plus uninsured and underinsured motorist coverage of 25/50 each.
Does no-fault pay before workers' comp in Minnesota?
No. Workers' compensation benefits are an exception to no-fault's primary status.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.