What is a "no-fault" state?

No-fault coverage applies only to expenses resulting from injuries sustained to an insured in an automobile accident. In Minnesota, a no-fault state, the no-fault portion of your auto insurance policy is usually called Personal Injury Protection (or PIP).

Under no-fault laws, a driver does not have to prove that a crash was somebody else's fault before getting reimbursed for injuries. The coverage for medical bills, rehabilitation, and lost wages will be provided by each driver’s individual policy. This is intended to reduce litigation for accidents that result in minor injuries. For more serious accidents where PIP limits are exhausted or you attain specified thresholds, you may make a claim against the other driver's liability coverage if the other driver is found to be liable.

Other facts about no-fault:

  • Covers medical costs, rehabilitation costs, wage loss, replacement services such as housekeeping, and in the event of death, $2,000 of funeral expenses.
  • Minimum no-fault coverage is $40,000. That amount is available to each person injured in an accident; $20,000 is allowed for medical expenses and $20,000 may be used for non-medical expenses. Additional coverage beyond these amounts can be purchased.
  • No-fault coverage usually does not apply to accidents when you are riding a motorcycle or snowmobile. You must purchase a separate insurance policy to cover these vehicles, and the policies may not include personal injury protection. PIP coverage for snowmobiles or motorcycles can be purchased separately.

We can help

If you have questions about auto insurance, visit one of our branches or call us at 1-800-443-6316.


Insurance products are offered through Think Insurance (MN license # IA-538), not Think Mutual Bank. Insurance products are not FDIC insured, are not insured by any federal agency, and are not a deposit or guarantee of Think Mutual Bank.
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Insurance products are offered through Think Insurance (MN license # IA-538), not Think Mutual Bank. Insurance products are not FDIC insured, are not insured by any federal agency, and are not a deposit or guarantee of Think Mutual Bank. This is not a policy. For a complete statement of coverages and exclusions, please see the policy contract.

The Investment Professionals of Think Financial Planning are Registered Representatives and Investment Adviser Representatives with/and offer Securities and Advisory Services through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered by CES Insurance Agency. Investments are not FDIC insured, not bank guaranteed, not insured by any federal agency and may lose value. Check the background of this firm on FINRA's BrokerCheck. Think Financial Planning is headquartered at 5200 Members Pkwy NW, Rochester, MN 55901.

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