Minnesota No-Fault Benefits: What the $40,000 Covers

By the FigureMyTax Editorial Team · How we calculate

Minnesota basic economic loss benefits provide at least $40,000 per person regardless of fault: $20,000 for medical expense, and a total of $20,000 for income loss, replacement services, funeral expense and survivor losses. Income loss pays 85 percent of gross income up to $500 a week.

The two $20,000 buckets

Minn. Stat. 65B.44, subd. 1 says basic economic loss benefits reimburse all loss suffered through injury arising out of the maintenance or use of a motor vehicle, subject to deductibles, exclusions and conditions, with a minimum of $40,000 for one person: $20,000 for medical expense loss, and a total of $20,000 for income loss, replacement services loss, funeral expense loss, survivor's economic loss and survivor's replacement services loss.

Medical expense

Subdivision 2 reimburses all reasonable expenses for necessary medical, surgical, x-ray, optical, dental, chiropractic and rehabilitative services, prosthetic devices, prescription drugs, transportation to treatment, interpreting and translation services, and hospital, extended care and nursing services. Hospital room and board may be limited to semiprivate rates except in intensive care. A person entitled to these benefits may not receive less, and a reparation obligor may not contract for managed care services for no-fault claimants.

Income loss

Subdivision 3 pays 85 percent of present and future gross income lost from inability to work caused by a nonfatal injury, up to $500 a week, including the cost a self-employed person pays for substitute workers. The benefit is reduced by income from substitute work performed or reasonably available. "Inability to work" means disability that prevents any substantial gainful occupation for which you are or may by training become reasonably qualified. The weekly maximums may not be prorated to a daily maximum.

Replacement services

Subdivision 5 reimburses usual and necessary substitute services you would have performed for your household, up to $200 a week, excluding the date of injury and the first seven days after it. For a person who normally provides full-time care of a home, the benefit is the greater of the reasonable value of that care or the expenses of substitute care.

When you are paid

Section 65B.54 says benefits are payable monthly as loss accrues, and are overdue if not paid within 30 days after the insurer receives reasonable proof of the fact and amount of loss.

Using the calculator

A worked example: with $1,000 of weekly gross income lost for six weeks, 85 percent is $850, capped at $500, so income loss benefits are $3,000, plus medical expense up to $20,000. Run your own numbers in the Minnesota no-fault calculator, then read the tort threshold and the deduction rule. If the other driver has little insurance, see Minnesota UM/UIM stacking.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Minnesota's rules apply to your specific case with a licensed Minnesota attorney.