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What About Uninsured or Underinsured Drivers?

Posted by: euser
December 26, 2006
Topic: Minnesota No-Fault Law

First, what is an "uninsured" driver? The No-Fault Act describes an "uninsured motor vehicle" as "a motor vehicle or motorcycle for which a plan of reparation security meeting the requirements of [the No-Fault Act] is not in effect. (Minn. Stat. §65B.43, Subd. 16) Therefore, the Act requires drivers to carry uninsured motorist coverage for the "protection of persons insured under that coverage who are legally entitled to recover damages for bodily injury from owners or operators of uninsured motor vehicles and hit-and-run motor vehicles." (Minn. Stat. § 65B.43, Subd. 18)

Likewise, an "underinsured motor vehicle" is "a motor vehicle or motorcycle to which a bodily injury liability policy applies at the time of the accident but its limit for bodily injury liability is less than the amount needed to compensate the insured for actual damages." (Minn. Stat. § 65B.43, Subd. 17) The Act also requires that drivers carry underinsured motorist coverage. (Minn. Stat. § 65B.43, Subd. 19)

So how much uninsured and underinsured coverage should drivers have? Minn. Stat. § 65B.49, Subd. 3(a)(1) explains:

No plan of reparation security may be renewed, delivered or issued for delivery, or executed in this state with respect to any motor vehicle registered or principally garaged in this state unless separate uninsured and underinsured motorist coverages are provided therein. Each coverage, at a minimum, must provide limits of $25,000 because of injury to or the death of one person in any accident and $50,000 because of injury to or the death of two or more persons in any accident. In the case of injury to, or the death of, two or more persons in any accident, the amount available to any one person must not exceed the coverage limit provided for injury to, or the death of, one person in any accident.

Further, Minn. Stat. § 65B.49, Subd. 3(a)(2) requires that "every owner of a motor vehicle registered or principally garaged in this state shall maintain uninsured and underinsured motorist coverages as provided in this subdivision." Finally, "no recovery shall be permitted under the uninsured and underinsured motorist coverages of this section for basic economic loss benefits paid or payable, or which would be payable but for any applicable deductible." (Minn. Stat. § 65B.49, Subd. 3(a)(4))