Minnesota Car Accident Settlement Process and Timeline

Car accidents happen all the time. In Minneapolis alone, there were more than 150 fatal crashes each year between 2017 and 2021. According to the city's government, car accidents have increased since 2020. Understanding how the Minnesota car accident settlement process works makes it even more vital. You should also understand the settlement timeline, regardless of which part of the state you live in.

This article will discuss Minnesota law on car crash reporting. It will also describe the car accident settlement process and explain the types of damages your personal injury attorney can demand in your car accident claim. 

Do I Need To Report a Car Accident in Minnesota?

According to the Minnesota Department of Public Safety, you must report all car accidents that result in injury or death. You must report the accident to the local police, state patrol, or county sheriff as soon as possible. 

You must also file a report with the Minnesota Department of Public Safety within 10 days of the accident if any of the following are true:

• The accident caused physical injury or death

• The crash caused more than $1,000 in property damage

This law also requires motorists to stop and check to see if anybody is hurt and to exchange insurance policy information with the other driver.

Minnesota Car Insurance Laws

Like most other states, Minnesota requires motorists to maintain a certain amount of auto insurance coverage. But, Minnesota's insurance thresholds are much lower than other states.

According to the Minnesota Commerce Department, all drivers must maintain the following minimum amounts of coverage:

• $40,000 in no-fault auto accident coverage per person per accident

• $20,000 in medical expenses

• $20,000 in non-medical expenses

Minnesota law also requires that you carry personal injury protection (PIP). This covers any medical bills and other economic expenses your regular insurance policy doesn't pay.

Since Minnesota's insurance laws are so comprehensive, it is worth discussing this in more detail.

Personal Injury Protection (PIP)

PIP provides compensation for basic economic damages. Minimum requirements for PIP are $20,000 for medical expenses and $20,000 for non-medical expenses. So, the minimum PIP coverage is $40,000 per person per accident.

Liability Coverage

Liability insurance covers damage to another person's vehicle when an accident is your fault. So, if the other driver is at fault, you can file a claim against their liability coverage. But you must exhaust your PIP benefits first. 

The minimum amounts of liability coverage are:

• $30,000 for injuries to one person

• $60,000 for injuries to two or more people

• $10,000 for physical damage to another person's vehicle or any other property damage

Underinsured and Uninsured Motorist's Coverage

Minnesota requires that you carry underinsured and uninsured motorist coverage. This policy covers medical claims when the at-fault driver doesn't have enough (or any) insurance. 

The minimum requirements for uninsured motorists' coverage are: 

• $25,000 for injuries to one person 

• $50,000 for injuries to two or more people

If the police learn you are driving without the right auto insurance, the state will charge you with a misdemeanor. You may even face jail time if you can't show proof of insurance during the crash.

How Do Car Accident Settlements Work in Minnesota?

Minnesota follows the no-fault system on car accidents and insurance claims. If you suffer injuries in a car accident, you must file a claim with your insurance company first. Your insurance company will investigate the car accident claim and calculate your damages. 

The adjuster handling your claim will either send you a check for the total amount of the claim or deny your claim. Their other option is to offer you a settlement. The settlement amount will be substantially less than your original demand.

If you accept the settlement offer, the insurance adjuster will ask you to sign a release. Once you sign the release, they will send your settlement check. You will then be responsible for reimbursing your health care providers for any medical treatment you had. You must also pay all other out-of-pocket expenses.

You should never sign a personal injury settlement release without having a car accident lawyer review it. They'll check to see if the insurance company is trying to take advantage of you.

If you disagree with the insurance company, you can appeal to the claims supervisor. If you can't resolve your dispute with the company, you can file a complaint with the Minnesota Department of Commerce. The department will investigate your claim and try to solve the issue.

Under the no-fault system, you can't sue the other driver unless you meet specific thresholds set by Minnesota law. 

To directly sue the other driver in Minnesota, you must meet one of the following criteria:

• You have medical expenses exceeding $4,000

• You suffer a permanent injury, permanent scarring, or disfigurement

• You experience 60 days of disability

When you file your personal injury case, you must submit proof that you meet these thresholds. Given the complicated nature of Minnesota's personal injury law, you may want to contact a personal injury lawyer before you file suit. 

What Is the Average Car Accident Settlement in Minnesota?

There are two main types of legal damages: economic and non-economic. Economic damages are specific economic costs such as medical bills, auto repairs, and other out-of-pocket expenses. Non-economic damages are things like pain and suffering or emotional distress. It is hard to quantify non-economic damages. Your attorney can help do this using medical records, the police report, and other evidence.

Most car accident victims get some or all the following types of damages:

• Medical bills and future medical expenses

• Lost wages

• Lost future income

• Property damage

• Pain and suffering

Your level of fault may impact your damages and settlement amount. Minnesota applies the modified comparative negligence rule when determining fault and liability. Under this rule, you can recover damages if you are less than 51% at fault. 

The court will reduce your damages by your percentage of fault. For example, imagine somebody smashing into the rear end of your car. You sue them for $100,000. The court finds that you were 20% at fault since your brake lights weren't working properly. It will reduce your damages by 20%, or $20,000.

If the court determines that you are more than 50% at fault, you will get nothing.

How Long Do I Have to File a Car Accident Lawsuit in Minnesota?

According to Minnesota's statute of limitations, you have two years to file your personal injury lawsuit and six years to sue the other driver for property damage. 

If you miss this filing deadline, the judge will dismiss your claim, and you'll get nothing. One reason to talk to a car accident attorney is to ensure you file your legal claim on time. 

Questions About the Car Accident Settlement Process in Minnesota? Ask a Lawyer

Most accident victims settle their cases with the insurance company directly or during settlement negotiations with the other party. Even cases that don't go to trial can become quite challenging, so speaking with a local car accident attorney about your situation is a good idea. 

Contacting a car accident lawyer early in the settlement process can help you resolve the case faster and increase your chances of getting the money you deserve.