I like our system. It isn’t the type of system that I could actually make more money in. You see if there wasn’t no fault and tort thresholds, there would be even more possible cases and we would be able to collect a percentage on everything that was recovered. But, for my clients, a system that pays them some wage loss and gets their medical bills paid, actually saves families when they need the help the most. That is a good trade off in my mind.
But the Insurance Federation is back in full force claiming these outrageous losses being suffered by the "out of control" system we work in? Well what do the numbers say?
General Minnesota No Fault Information
What we know about no fault?
Case Filings: Personal Injury case filings in district court are down over 46% since 1997. # of cases in 1997 = 6,167; # of cases in = 2010 3,586.
Source: Minnesota Court Administration
Arbitrations: No Fault Arbitrations which would be forced to district court in the case of no fault repeal
2009 4844
2010 5476
Source: American Arbitration Association
How does Minnesota Compare?
The comparison charts below are based on how insurance premiums (expenditures) are calculated. The 2010 Insurance Fact Book by the Insurance Information Institute, states: “Expenditures are affected by the coverages purchased as well as other factors. In states where the economy is healthy, people are more likely to purchase new cars. Since new car owners are more likely to purchase physical damage coverages, these states will have higher average expenditure.” p. 59
The National Association of Insurance Commissioners (NAIC) notes that urban population, traffic density, and per capita income have a significant impact on premiums.
Comparison by Mandatory Coverages –
Four states require five coverages – BI, PD, PIP, UI, UIM (Premiums are 2007 numbers)
State |
Limits |
No Fault? |
Avg. Premium |
National Rank: |
State Coverage | ||||
New Jersey |
15/30/5 |
Add-on Choice No Fault |
$1,104 |
#2 |
Maryland |
30/60/15 |
Add-on |
$922 |
#13 |
Minnesota |
30/60/10 |
No Fault |
$721 |
#28 |
North Dakota |
25/50/25 |
No Fault |
$512 |
#51 |
National Average for Premiums = $795 |
Comparison by Population (Premiums are 2007 numbers, states with 10 electoral votes) –
State |
Coverage & Limits |
No Fault? |
Avg. Premium |
National Rank: |
Maryland |
BI, PD, PIP, UI, UIM 30/60/15 |
Add-on Choice No Fault |
$922 |
#13 |
Arizona |
BI, PD 50/100/25 |
$879 |
#14 |
|
Minnesota |
BI, PD, PIP, UI, UIM 30/60/10 |
No Fault |
$721 |
#28 |
Wisconsin |
BI, PD, UI, MP 50/100/15 |
$582 |
#45 |
|
National Average for Premiums = $795 |
Comparison by Population Density (Premiums are 2007 numbers) –
State |
Coverage & Limits |
No Fault? |
Population Density |
Avg. Premium |
National Rank: |
Arizona |
BI, PD 50/100/25 |
56.3 |
$879 |
#14 |
|
Minnesota |
BI, PD, PIP, UI, UIM 30/60/10 |
No Fault |
66.6 |
$721 |
#28 |
Vermont |
BI, PD 25/50/10 |
67.9 |
$662 |
#34 |
|
Mississippi |
BI, PD 25/50/25 |
63.2 |
$680 |
#32 |
|
National Average for Premiums = $795 |
|||||
US Average Population Density = 87.4/sq mi |
Compared to other No Fault States (Premiums are 2007 numbers and policy) –
State |
Coverage & Limits |
No Fault? |
Avg. Premium |
National Rank: |
D.C. |
BI, PD, UM 25/50/10 |
Add-on |
$1,140 |
#1 |
New Jersey |
BI, PD, PIP, UI, UIM 15/30/5 |
Add-on |
$1,104 |
#2 |
New York |
BI, PD, PIP, UM 25/50/10 |
No Fault |
$1,047 |
#4 |
Florida |
PD, PIP 10/20/10 |
No Fault |
$1,043 |
#5 |
Delaware |
BI, PD, PIP 15/30/10 |
Add-on |
$1,012 |
#7 |
Massachusetts |
BI, PD, PIP, UM 30/40/5 |
No Fault |
$981 |
#9 |
Michigan |
BI, PD, PI 20/40/10 |
No Fault |
$928 |
#11 |
Maryland |
BI, PD, PIP, UI, UIM 30/60/15 |
Add-on |
$922 |
#13 |
Washington |
Bi, PD 25/20/10 |
Add-on |
$841 |
#15 |
Hawaii |
BI, PD, PIP 20/40/10 |
No Fault |
$837 |
#16 |
Pennsylvania |
BI, PD, PIP 15/30/5 |
No Fault |
$820 |
#17 |
Texas |
BI, PD 30/60/25 |
Add-on |
$808 |
#19 |
New Hampshire |
FR only (?),UM 25/50/25 |
Add-on |
$750 |
#23 |
Oregon |
BI, PD, PIP, UM 25/50/20 |
Add-on |
$723 |
#27 |
Minnesota |
BI, PD, PIP, UI, UIM 30/60/10 |
No Fault |
$721 |
#28 |
Kentucky |
BI, PD, PIP 25/50/10 |
No Fault |
$720 |
#29 |
Utah |
BI, PD, PIP 25/65/15 |
No Fault |
$697 |
#31 |
Virginia |
BI, PD, UM, UIM 25/50/20 |
Add-on |
$661 |
#35 |
Arkansas |
BI, PD 50/100/25 |
Add-on |
$660 |
#36 |
Wisconsin* |
BI, PD, UI, MP 50/100/15 |
Add-on |
$582 |
#45 |
Kansas |
BI, PD, PIP, UIM 25/50/10 |
No Fault |
$568 |
#46 |
South Dakota |
BI, PD, UM 25/50/25 |
Add-on |
$534 |
#49 |
North Dakota |
BI, PD, PIP, UI, UIM 25/50/25 |
No Fault |
$512 |
#51 |
National Average for Premiums = $795 |
||||
*Wisconsin has had numerous reforms since 2007 |
Minnesota’s Rates Decreased = Since 2003 Minnesota’s net premiums decreased $116 or 13.9%.
Source: 2010 Insurance Fact Book, Insurance Information Institute
So what do we have? A system that works for most Minnesotans, is not overly expensive, and it has a sense of justice. Sure it’s higher than a couple of our neighbors, but look at the the population and the coverages provided. There is no "sky is falling" reality. Minnesota works so let’s make sure the consumers continue to be protected.
A founding partner with Bradshaw & Bryant, Mike Bryant has always fought to find justice for his clients—knowing that legal troubles, both personal injury and criminal, can be devastating for a family. Voted a Top 40 Personal Injury "Super Lawyer" multiple years, Mr. Bryant has also been voted one of the Top 100 Minnesota "Super Lawyers" four times.
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