Minnesota drivers know that after a crash, getting the other driver’s insurance information is one of the first steps. Discovering the other driver is uninsured or underinsured can turn an otherwise frustrating situation into a nightmare.
What should happen after a crash
In Minnesota, we follow a “no-fault” insurance system. This means your own insurance typically covers your lost wages and medical bills after a crash, regardless of who is to blame for the accident. Your Personal Injury Protection (PIP) coverage handles these costs up to your policy limits.
If your damages exceed your PIP coverage or meet certain thresholds, you can then pursue a claim against the at-fault driver’s insurance. This process is usually straightforward when the other driver carries adequate coverage.
What happens when they don’t have adequate coverage
Here’s where things get complicated. Minnesota law requires drivers to carry minimum liability coverage, but not everyone follows the rules. This is where two critical types of coverage protect you:
Uninsured Motorist (UM) Coverage can protect you when:
- The at-fault driver has no insurance at all
- The at-fault driver flees the scene
- You’re hit by an unidentified vehicle
Underinsured Motorist (UIM) Coverage helps when:
- The at-fault driver’s insurance isn’t enough to cover your damages
- Their policy limits are lower than your medical bills and other losses
These coverages step in to fill the gap, treating your own insurance company as if they were the at-fault driver’s insurer.
Do you have enough coverage?
Minnesota requires minimum liability coverage of $25,000 per person and $50,000 per accident. However, serious accidents often exceed these amounts. Consider whether your current UM/UIM coverage matches your liability limits. You have the option of getting more coverage or “stacking” coverage, which allows you to combine the UM/UIM coverage limits for each of the vehicles you own. Additional costs are typically modest, but can provide significant peace of mind.