Who is Helped with No Fault?

The answer is clearly the consumer. When a person is in a collision in Minnesota, it is of great benefit to have medical and some wage loss paid for from the very beginning. They don't need to wait until the defendant accepts responsibility and the case eventually settles.

It is not usual to have clients come in and have issues with the thought that their insurance company has to pay when they didn't do anything wrong. We explain that No Fault in Minnesota was a deal that gave the insurance companies thresholds and in return, the system that guaranteed early payment was created. That claim cannot be used to raise your rates. Finally, that to the companies it really doesn't matter because the combination of State Farm, Progressive, Farmers, Allstate, etc. will run into each other over and over again. So what they pay in this one is probably dealt with by another collision that very day.

There have been others here at the Injuryboard who have pointed out the value of No Fault:

Michigan provides no fault benefits to all persons injured in auto accidents, Devon Glass | January 08, 2008 9:13 AM

I Like No-Fault Insurance Because State Farm Does Not, Bob Carroll | February 21, 2007 5:15 AM

I also looked at the rates:

Minnesota Has Low Car Insurance Rates, Mike Bryant | July 25, 2010 2:01 AM

How Does Minnesota Auto Insurance Compare Nationally?, Mike Bryant | May 05, 2011 9:28 AM

At the same time, we are again seeing misleading information from the insurance companies. I recently saw an article in the Insurance Network News that looked at the loss ratio. The conclusion was, as usual, that it must be fraud that drives up rates. What they seem to ignore is that without No Fault :

– Bills get shifted to Health Insurance

– Medical Bills and Wage Loss go unpaid so they shift to the taxpayer and government programs

– That a system like No Fault often involves people contacting lawyers earlier and getting information of all their rights.

– The Auto Insurance also charges for these additional coverages and, as in Minnesota, has been given other protections as a trade off.

For a person who is in a collision, the very first concern is almost always how they protect their losses. They suddenly have medical bills and the immediate inability to work. A system that addresses these problems helps the person in their time of need.