What Most People Get Wrong About This
The usual line: the other driver caused the crash, so the other driver's insurance pays my medical bills. I'll wait for their adjuster to call.
What's actually true: in Minnesota, the first call is usually to your own insurer. If you or a relative in your household has an auto policy, that policy is generally the one that owes your no-fault benefits, even when you were a passenger in someone else's car or walking across the street (Minn. Stat. 65B.47). Waiting on the other driver's insurer can cost you weeks of unpaid bills, and the clock to give notice is already running.
What to do instead: open a PIP claim with your own company right away, send bills as they arrive, and keep a simple log of missed work. Fault still matters, but it matters later.
You were rear-ended on Pilot Knob Road, the car is in the shop, and the physical therapy bills are starting to show up. Our complete Minnesota car insurance guide covers the basics of no-fault and how it fits next to liability and UM/UIM. This article goes one layer deeper, into the questions that come up once a claim is actually open: how the income benefit is calculated, whose policy owes you, what the insurer can ask you to do, what happens when a bill is denied, and where motorcycles, bikes and pedestrians fit. Everything here comes from the Minnesota No-Fault Automobile Insurance Act, Minn. Stat. 65B.41 to 65B.71. It's general information, not legal advice, and your own policy's wording controls.
- Medical expense
- $20,000Minn. Stat. 65B.44
- Non-medical pool
- $20,000Income, services, funeral, survivors
- Overdue after
- 30 days15% simple interest, 65B.54
- Mandatory arbitration
- $10,000or less, 65B.525
What does Minnesota PIP actually pay, benefit by benefit?
Short answerUp to $20,000 of reasonable medical care, plus one shared $20,000 pool for lost income, household help, funeral costs and survivors, each with its own weekly or dollar cap.
The $40,000 total in Minn. Stat. 65B.44 is really two buckets. The medical bucket covers reasonable charges for necessary care: medical, surgical, x-ray, dental, chiropractic and rehabilitative services, prescriptions and prosthetic devices. The second bucket is shared. Every dollar paid for lost income comes out of the same $20,000 that also has to cover replacement services and, in a fatal crash, funeral and survivors' benefits.
Income loss
85% of the gross income you lose, capped at $500 a week. Self-employed? It can include the cost of hiring someone to do the work you can't. Lost unemployment benefits count too.
Replacement services
Paying someone for the unpaid work you'd normally do: childcare, cleaning, mowing, shoveling. The day of the injury and the first seven days after it are excluded.
Funeral and burial
Reasonable funeral, burial or cremation expenses, up to $5,000 under subdivision 4. If an older summary quotes a lower figure, go by the current statute.
Survivors' benefits
If death comes within a year of the accident, dependents can receive lost support up to $500 a week and replacement services up to $200 a week, until dependency ends or the pool runs out.
How the income math works in practice
The weekly cap bites sooner than most people expect. Earn $500 a week gross and PIP pays about $425 (85%). Earn $1,000 a week and 85% would be $850, but the cap holds you at $500. Anyone grossing more than roughly $588 a week, about $30,600 a year, hits the ceiling. And because income shares a pool with everything else, $500 a week drains the full $20,000 in 40 weeks, sooner if you're also paying for help at home. The statute also says the weekly caps can't be prorated into daily amounts, and income from substitute work you actually do (or unreasonably turn down) reduces the benefit.
Two more wrinkles are worth knowing. If you were driving for work and workers' compensation covers the injury, workers' comp generally pays first, and PIP's income benefit only makes up the difference when the weekly comp benefit is lower than PIP's weekly income benefit would be (Minn. Stat. 65B.61). And if you're 65 or older, or 60 or older and retired and receiving a pension, the law lets you decline the income-loss portion, with a lower premium to match; your insurer has to tell you about that choice at sale or the first renewal after you turn 60, and at least once a year after that (65B.44, subd. 3a). If you're still working, think hard before you take that election.
Whose policy pays your PIP: yours, the car's or the other driver's?
Short answerUsually the policy covering you or a relative in your household, wherever you were sitting; the car's policy steps in when nobody in your household has coverage, with special rules for work and commercial vehicles.
Minnesota sets a pecking order in Minn. Stat. 65B.47. Under 65B.43, an "insured" isn't only the person named on the policy. It also includes a spouse, other relatives and minors in your custody who live in the same household. Here's how the order typically plays out:
| Where you were | Whose PIP is usually first |
|---|---|
| Driving or riding in your own household's car | Your household's policy |
| A passenger in a friend's car, and your household has a policy | Your household's policy, not your friend's |
| A passenger with no auto policy in your household | The policy on the car you were in |
| Walking or biking, and your household has a policy | Your household's policy, unless the vehicle that hit you was being used to carry people or property for business or was employer-provided (then that vehicle's policy) |
| Walking or biking, with no household policy | The policy on any involved vehicle, shared if there were several |
| In a vehicle used in the business of carrying people or property, such as a delivery truck | That vehicle's policy (taxi passengers, commuter vans, school or daycare transport and some bus trips are exceptions) |
| Driving a car your employer provided | That car's policy |
| No coverage applies or none can be identified | Minnesota's assigned claims plan may apply |
One reassuring detail: you don't have to referee a fight between insurers. Benefits are paid only once, but under 65B.47, subd. 5, the company you claim against pays as if it were wholly responsible and then recovers a share from the others. The assigned claims plan (Minn. Stat. 65B.63 and 65B.64) is the safety net for people with no applicable coverage, such as a child with no policy in the household. It isn't open to someone who owned a car that was supposed to be insured and wasn't, or to the family members living with them, though minor children and adults adjudicated incompetent are carved out of that household bar (65B.64, subd. 3).
How do you file a Minnesota no-fault claim, step by step?
Short answerGive your insurer notice quickly, complete its application for benefits, send bills and wage proof as they come in, and attend a medical exam if the insurer reasonably asks for one.
The Minnesota Department of Commerce's auto insurance basics page lays out the process in a few lines. The statutes fill in what each step means for you:
- Give notice. Commerce says no-fault claims must be made within six months of the accident. The statute lets a policy set the notice window, but never shorter than six months, and late notice reduces benefits only to the extent the insurer can show it was actually harmed by the delay (Minn. Stat. 65B.55). That's a safety valve, not a plan. Report it in the first days.
- Complete the application for benefits. Your insurer sends it. It asks about the accident, your injuries, your providers and your employer. Expect the insurer to ask for help getting your medical records and reports; the law requires you to do what's reasonably necessary so it can get them (65B.56).
- Send proof as it arrives. Medical bills, pay stubs or an employer's wage statement, receipts for paid household help. Commerce advises submitting bills as they come in rather than in one pile at the end.
- Attend the exam if one is requested. The insurer can ask you to see a doctor it chooses, as reasonably required. It pays the full cost, the exam is held in the city or town where you live (or the closest place with a suitable doctor), and you're entitled to a copy of the report if you ask. Refusing can be used against you later in arbitration or court.
- Watch the payment clock. Benefits are paid monthly as losses build up. Under Minn. Stat. 65B.54, a benefit is overdue if it isn't paid within 30 days after the insurer receives reasonable proof, and overdue payments carry simple interest of 15% a year. If the insurer rejects a claim, it owes you prompt written notice.
What about your health insurance? Under 65B.61, no-fault benefits are generally primary over other sources except workers' compensation, and health plans are allowed to coordinate with no-fault only if they give a reduced premium for doing so. Practically, that means your medical bills usually run through PIP first. Give your providers your auto claim number, and check your health plan's documents for how it handles auto injuries once PIP is exhausted.
Smart moves vs costly mistakes in the first month
| The moment | Smart move | Costly mistake |
|---|---|---|
| The day after the crash | Open the PIP claim with your own insurer | Wait for the other driver's adjuster to call |
| Missed work | Get a wage statement from your employer early | Estimate lost pay from memory months later |
| Help at home | Keep receipts and dates for paid help | Assume a friend's help counts without records |
| An exam request | Attend, and ask for a copy of the report | Skip it and hope it doesn't matter |
| A denial letter | Read the reason and note the dates | Let it sit until the bills go to collections |
What happens if your insurer denies or cuts off PIP benefits?
Short answerIf the disputed amount is $10,000 or less when arbitration starts, the dispute goes to mandatory binding arbitration before a Minnesota attorney-arbitrator instead of a jury trial; larger claims can go to court.
Denials and cutoffs often follow an insurer's medical exam, when the examining doctor concludes that more treatment isn't necessary or isn't related to the crash. You don't have to accept that as the last word. Minn. Stat. 65B.525 requires binding arbitration for no-fault claims of $10,000 or less (and for comprehensive or collision disputes of that size). The process runs under the Minnesota Rules of No-Fault Arbitration Procedure, amended effective April 1, 2025, and administered by the American Arbitration Association. Under those rules:
- Starting costs little. The claimant's filing fee is $60. The insurer pays $235 (Rule 39).
- The arbitrator is a Minnesota lawyer. Panel members must be Minnesota-licensed attorneys (or retired attorneys or judges in good standing) with at least five years of practice in the state and approved no-fault training. Each side can strike a name from a list of four (Rules 8 and 10).
- Hearings can be flexible. In person, by phone or video, or on documents alone, with at least 14 days' notice. The award is due within 30 days after the hearing closes (Rules 14 and 30).
- Interest, not attorney fees. The arbitrator must add the 15% statutory interest when it applies, but can't award attorney fees to either side (Rule 32).
- Growing claims stay put. If your bills keep accruing after you file, the arbitrator can decide amounts above $10,000 (Rule 6).
Claims above $10,000 at the start aren't subject to mandatory arbitration, so they can go to district court, or to arbitration if both sides agree. You can bring an attorney to a no-fault arbitration, and if your benefits have been cut off, talking to one who handles Minnesota no-fault claims is reasonable. If you believe your insurer is mishandling a claim, you can also contact the Minnesota Department of Commerce at 651-539-1600 or file a complaint online.
When can you step outside no-fault and sue the other driver?
Short answerFor pain and suffering, only after a threshold is met, such as more than $4,000 of qualifying medical expense, but economic losses that PIP's caps leave unpaid can be pursued without meeting it.
Our Minnesota car insurance guide lists the tort threshold. The detail that matters once you're in a claim is how Minn. Stat. 65B.51 counts toward it:
- What counts toward the $4,000. Reasonable medical expense benefits paid or payable (including any deductible), plus the value of free medical care or nursing provided by a relative or household member.
- What doesn't. Diagnostic x-rays, and treatment that's for rehabilitation rather than for remedial purposes, are subtracted from the total.
- The other doors. Permanent disfigurement, permanent injury, death, or disability for 60 days or more. "Disability" here means being unable to do substantially all of your usual and customary daily activities, which isn't the same thing as being off work.
- Economic loss beyond PIP. Subdivision 2 allows a negligence claim for economic loss PIP didn't pay because of its dollar limits, weekly caps or the seven-day services exclusion. If you earn $1,500 a week, the gap above the $500 cap is that kind of loss.
- No double recovery. Any court award is reduced by the no-fault benefits paid or payable.
Whether a particular injury meets a threshold is a legal question we can't answer for you, and the claim against the other driver lands on their liability coverage. That's also why we push clients to carry liability well above 30/60/10 and to keep strong underinsured motorist coverage: if the driver who hurt you carries the minimum, your UIM is what fills the gap. For what Minnesota law requires on every policy and what those numbers mean, see our guide to Minnesota car insurance requirements.
What if you were walking, biking or riding a motorcycle?
Short answerPedestrians and cyclists hit by a car generally get PIP from their own household auto policy or the car's policy, but motorcycle riders get none unless they bought PIP on the motorcycle policy.
Walking or biking. A pedestrian or cyclist isn't an occupant of a motor vehicle, so the priority rules above apply: your household's auto policy first if you have one, and the policy on the involved vehicle if you don't. You don't need to own a car to collect. Minnesota also gives PIP rights to a pedestrian struck by a motorcycle (Minn. Stat. 65B.46). An electric-assisted bicycle, as state traffic law defines it, is carved out of the no-fault act's motorcycle definition (65B.43, subd. 13). How a particular e-bike claim is handled can still depend on the facts, so call your insurer or us.
Riding a motorcycle. This is the biggest gap in Minnesota no-fault. The act's "motor vehicle" excludes anything with fewer than four wheels, and 65B.46 says injuries suffered while on, mounting or getting off a motorcycle don't arise from the use of a motor vehicle, even when a car hit you. Motorcycle owners must carry liability, but PIP isn't required (Minn. Stat. 65B.48, subd. 5). When you apply for motorcycle coverage without PIP, a separate written notice must be attached to the application, and it says: “No PIP coverage provided by an automobile insurance policy you may have in force will extend to provide coverage in the event of a motorcycle accident.” Commerce adds that motorcycle and snowmobile policies don't include PIP, but it can be purchased separately. If you ride, ask about it when you set up motorcycle insurance.
Two everyday situations round this out. Hitting a deer is still a no-fault event for any injuries, while the damage to the car is usually a comprehensive claim (see what Minnesota car insurance covers when you hit a deer). And if you drive for a rideshare app, Minnesota sets separate PIP and liability requirements for app time, covered in our main guide.
The Bottom Line
Minnesota no-fault is simple in its promise and detailed in its mechanics. Your own household policy usually pays your medical bills and part of your lost income, whoever caused the crash. The non-medical side is one $20,000 pool with a $500 weekly income cap, so a serious injury can outrun it. Give notice quickly, send proof as it comes, and know that small disputes go to an arbitrator, not a jury.
The most useful thing you can do today is look at your declarations page. Confirm your PIP limits, ask whether higher limits or an added-limits election makes sense for your household, and check that your liability and UIM limits are well above the minimum. If you ride a motorcycle, find out whether you have PIP on it at all.
We start with Farmers Insurance® and, when Farmers isn't the right fit, can look at additional carriers. See how we build Minnesota auto policies, read how to lower your premium without cutting PIP or UM/UIM, or start a quote. Se habla español.
Related Questions About Minnesota No-Fault Claims
Whose PIP pays if I'm hurt as a passenger in a friend's car in Minnesota?
Usually your own. Under Minn. Stat. 65B.47, the no-fault policy that covers you or a relative living in your household is generally first in line, even when you were riding in someone else's car. If no one in your household has an auto policy, the policy on the car you were in typically pays. Special rules apply to employer-provided cars and to vehicles used in the business of carrying people or property.
Does my car insurance cover me if a car hits me while I'm biking in Minnesota?
Generally, yes, for your injuries. A cyclist isn't an occupant of a motor vehicle, so if you or a relative in your household has a Minnesota auto policy, that policy's PIP is usually first. If your household has no policy, the PIP on the involved vehicle typically applies (Minn. Stat. 65B.47, subd. 4). If the vehicle that hit you was being used for business, such as a delivery truck, or was employer-provided, that vehicle's policy generally comes first (subd. 3). Damage to the bike itself isn't a PIP benefit, since no-fault doesn't pay for property damage.
How long does a Minnesota insurer have to pay a PIP bill?
Minnesota no-fault benefits are payable monthly as losses accrue, and a benefit is overdue if it isn't paid within 30 days after the insurer receives reasonable proof of the loss. Overdue benefits carry simple interest of 15% a year, and an insurer that rejects a claim must give you prompt written notice (Minn. Stat. 65B.54).
What does it cost to start a no-fault arbitration in Minnesota?
Under the Minnesota Rules of No-Fault Arbitration Procedure, amended effective April 1, 2025, the claimant's filing fee is $60 and the insurer's is $235. Arbitration is mandatory for no-fault claims of $10,000 or less at the time it begins (Minn. Stat. 65B.525). The arbitrator can't award attorney fees to either side, so any lawyer you hire is a separate cost.
Can I turn down PIP income loss coverage if I'm retired in Minnesota?
Yes, if you're 65 or older, or 60 or older and retired and receiving a pension. Minn. Stat. 65B.44, subd. 3a lets you decline the income-loss portion of PIP, your premium must be reduced accordingly, and the choice stays in place until you revoke it. Medical and other PIP benefits still apply. If you still earn wages, think carefully before giving up that coverage.
Does PIP pay before my health insurance after a car accident in Minnesota?
Generally, yes. Minn. Stat. 65B.61 makes no-fault benefits primary over most other sources, with workers' compensation the main exception. Health plans may coordinate with no-fault only if they give a reduced premium for doing so. Once PIP's $20,000 medical limit is used up, your health plan may pick up covered care under its own terms, so check your plan documents.
Last reviewed by Ryan Block, licensed Minnesota insurance agent, on October 27, 2026. Minnesota Statutes 65B.43, 65B.44, 65B.46, 65B.47, 65B.48, 65B.51, 65B.525, 65B.54, 65B.55, 65B.56, 65B.61, 65B.63 and 65B.64 (2025 edition) and the status of HF 2494 (2025) and SF 3630 (2026) were checked against revisor.mn.gov on that date. Claim steps come from the Minnesota Department of Commerce's auto insurance basics page; arbitration details come from the Minnesota Rules of No-Fault Arbitration Procedure as amended effective April 1, 2025. This article is general information, not legal advice. Coverage depends on your specific policy, and not all coverages and options are available from every insurer.