What if I Am in a Car Accident and Don’t Have Insurance?

Legally reviewed by:
Knutson and Casey Expert Legal Team
November 4, 2024

Auto insurance is incredibly important in Minnesota. Having insurance protects you and others on the roadway in the event of an accident. Operating a vehicle without having car insurance is against the law in Minnesota.

Aside from the legal consequences of not having insurance, you could be on the line for tremendous expenses if you get into an accident and are not covered under an insurance policy. If you need any support during your car accident claim, whether you have insurance or otherwise, we may be able to help. You’re welcome to contact an attorney from Knutson + Casey, and we’ll be happy to provide support during this difficult time.

What If I Am In A Car Accident And Don’t Have Insurance? Understanding Minnesota’s No-Fault System

Minnesota operates under a “no-fault” insurance system in which drivers maintain personal injury protection (PIP) coverage. In the event of an accident, drivers turn to PIP coverage for their medical expenses, loss of wages, replacement services, and death benefits. They will use this coverage regardless of which party was at fault for the accident. Having auto insurance is crucial in this system to ensure that all necessary expenses are covered.

Auto insurance coverage is legally required in most states, including Minnesota, to avoid penalties and ensure financial protection in the event of an accident.

Minnesota Driver Requirements

The minimum personal injury protection coverage requirement in Minnesota is $40,000. Drivers may step outside the no-fault system and file a lawsuit against an at-fault party if certain thresholds are met. This includes:

  • Incurring at least $4,000 in reasonable medical expenses
  • Suffering from 60 days of disability, permanent injury, or permanent disfigurement

Drivers in Minnesota are also required to carry:

  • Bodily injury liability: $30,000 per person and $60,000 per accident
  • Property damage liability: $10,000
  • Uninsured motorist coverage: $25,000 per person and $50,000 per accident
  • Underinsured motorist coverage: $25,000 per person and $50,000 per accident

Having a comprehensive car insurance policy is essential to cover various types of incidents and ensure compliance with state laws.

Potential Unintended Consequences of Driving Without Insurance

Drivers without insurance who cause a crash could still face significant losses, even though the other drivers in the accident will turn to their PIP coverage for expenses. First, a driver without insurance who causes a crash will be on the line to cover all of their own medical costs and property damage expenses.

Additionally, if the other parties involved in the accident reach the thresholds mentioned above, they could file a lawsuit against the at-fault driver to recover compensation. Without insurance, this means that the at-fault driver could be held personally liable for these costs.

An accident without insurance may lead to severe financial and legal consequences for the at-fault driver. And drivers caught without insurance may face increased insurance premiums when they eventually obtain coverage. The financial burden of covering medical bills without insurance may be overwhelming for at-fault drivers. The growing concern of uninsured drivers highlights the financial implications for those without insurance, making it crucial to maintain proper coverage.

In accidents, the responsibilities and potential legal actions involving the other driver might complicate the situation further. Contacting a car insurance company after an accident is important to verify coverage and understand the next steps.

Overview of Minnesota’s No-Fault System

Minnesota is a no-fault state, meaning that each driver’s insurance company is responsible for covering their own medical expenses and lost wages, regardless of who caused the accident. This system is designed to reduce the number of lawsuits and streamline the process for drivers to receive the medical treatment they need after an accident.

In Minnesota, drivers are required to carry personal injury protection (PIP) coverage, which pays for medical expenses and lost wages up to a specific limit. This ensures that individuals are able to quickly access necessary medical care without the need to determine fault first.

Minimum Insurance Coverage Requirements in Minnesota

In Minnesota, drivers are required to carry the following minimum insurance coverage:

  • Liability coverage: $30,000 per person and $60,000 per accident for bodily injury, and $10,000 per accident for property damage.
  • Personal injury protection (PIP) coverage: $40,000 per person for medical expenses and lost wages.
  • Uninsured motorist coverage: $25,000 per person and $50,000 per accident for bodily injury.
  • Underinsured motorist coverage: $25,000 per person and $50,000 per accident for bodily injury.

These coverages are designed to protect drivers financially in the event of an accident, ensuring that medical expenses and other costs are covered, even if the at-fault driver lacks sufficient insurance.

How Uninsured Motorist Coverage Works in Minnesota

Uninsured motorist coverage is designed to protect drivers if they are involved in an accident with someone who does not have insurance. In Minnesota, uninsured motorist coverage is mandatory and pays for medical expenses and lost wages up to the policy limit.

If You Get Into an Accident With an Uninsured Driver

If you are involved in an accident with an uninsured driver, you should be able to file a claim with your own insurance company to receive compensation for your damages. This coverage ensures that you are not left bearing the financial burden due to another driver’s lack of insurance.

If the Car You’re Driving is Insured

In many cases, the actual driver of the vehicle will not have insurance of their own, but they will be operating a vehicle that does have an insurance policy. In Minnesota, those who live with the insured person will generally also be covered under the insurance policy if they drive the vehicles. This includes a person’s spouse, children, minors they may have custody of, etc.

If you borrow somebody’s car, you will typically be covered under the vehicle owner’s car insurance policy so long as you are a licensed driver.

What to Do After a Car Accident

If you are involved in a car accident in Minnesota, there are several steps you should take to protect your rights and ensure that you receive the compensation you deserve. Here are some steps to follow:

  1. Seek medical attention: If you are injured in the accident, seek medical attention as soon as possible.
  2. Report the accident: Report the accident to the police and your insurance company as soon as possible.
  3. Gather evidence: Collect evidence from the accident scene, including photos of the damage and witness statements.
  4. Contact a car accident lawyer: Reach out to a car accident lawyer to discuss your options and determine the best course of action.
  5. File a claim: File a claim with your insurance company to receive compensation for your damages.

It’s important to note that Minnesota has a statute of limitations for filing a car accident lawsuit, which is six years from the date of the accident. If you are considering filing a lawsuit, acting quickly is crucial to ensure you do not miss the deadline.

Penalties for Driving as an Uninsured Driver in Minnesota

Driving without automobile insurance in Minnesota is considered a misdemeanor offense. Anybody charged with driving without insurance could face up to 90 days in jail and a fine of up to $1,000. The law states explicitly that “the court shall impose a fine of not less than $200,” so you should expect to pay at least that much and likely more.

Additionally, a person risks having their license suspended if they operate their vehicle without insurance. Getting a license reinstated may lead to additional costs, including potential legal fees associated with the legal proceedings.

Injured in a Car Accident? Don’t Have Car Insurance? You Can Still Get Help from a Car Accident Lawyer

If you are injured in a car accident but do not have insurance coverage at the time of the crash, that does not mean you are not entitled to compensation. Yes, not having insurance coverage may make securing compensation a bit more difficult, but that does not absolve another driver of their fault for the incident. Luckily, an attorney from Knutson + Casey can provide extensive support during complex legal matters.

You may still be able to recover compensation for your losses. You should speak to a skilled and experienced Minnesota car accident lawyer about your case as soon as possible. An attorney will have the legal knowledge and resources necessary to investigate your case, determine liability, and secure the compensation you need. Feel free to contact the talented and compassionate attorneys from Knutson + Casey for support in your claim. You can get started by calling (507) 344-8888 or completing our contact form.

Knutson+Casey

LEGALLY REVIEWED BY

Knutson and Casey Expert Legal Team

November 4, 2024

At Knutson+Casey, we take the time to understand each distinctive matter presented to us by a client in need of assistance. We make certain that our clients understand their options and can make informed decisions regarding the progress of their cases. We have 4 bar certified attorneys as well as 5 expert paralegals on staff to review all legal information and cases presented.