STATE LAW – MINNESOTA LIBRARY – GUIDE 21
Minnesota PIP, Medical Expenses, Priority & Reimbursement
Minnesota PIP/basic economic loss is a statutory first-party system with a $40,000 minimum benefit package, priority rules, overdue-payment remedies, arbitration, and separate reimbursement/lien regimes.
PIP / Medical / Reimbursement
Start with the $40,000 basic economic loss package and the correct priority source
Minn. Stat. § 65B.44 requires at least $40,000 per injured person: $20,000 medical expense benefits and $20,000 for income loss, replacement services, funeral expense, and survivor economic loss.
Priority
Minn. Stat. § 65B.47 determines the responsible reparation security and contains special rules for occupied vehicles, transportation businesses, employer-owned vehicles, and other settings. The occupied vehicle’s insurer should not be assumed to control before the priority statute is applied.
Payment timing and interest
Under § 65B.54, benefits are overdue if not paid within 30 days after the insurer receives reasonable proof of the fact and amount of loss, subject to the statute’s accumulation rule. Overdue payments bear 15% simple annual interest, and claim rejections must be promptly communicated in writing with the reason.
Arbitration
Section 65B.525 requires mandatory binding arbitration for qualifying no-fault, comprehensive, or collision claims of $10,000 or less at the commencement of arbitration. Minnesota’s No-Fault Arbitration Rules were amended effective August 4, 2026 and should be checked for current procedure.
Liens and reimbursement
Sections 65B.53 and 65B.61 govern selected no-fault subrogation/indemnity and coordination issues. Hospital liens arise under §§ 514.68–514.69, and Medical Assistance third-party rights are addressed in § 256B.042. Medicare, Medicaid, ERISA, and workers’ compensation can create separate federal or statutory obligations.
Maintain a payment ledger
- Medical bills and EOBs.
- Wage-loss and replacement-service claims.
- PIP payments and denials.
- Hospital/provider liens.
- Medical Assistance/Medicare notices.
- Workers’ compensation and reimbursement claims.
Authorities
Primary Minnesota authority for this topic
Use the current statute, controlling decisions, and operative policy before legal reliance.