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In Minnesota, passengers in a car accident have rights. You can seek payment for medical bills and lost wages, but how (and from whom) you seek that compensation depends on a few factors, including who was at fault and whether you or a family member owns an insured vehicle.
Who Pays My Medical Bills If I Was a Passenger in a Car Accident?
What is no-fault priority? No-fault priority is the order Minnesota law uses to decide which insurance policy pays your medical bills and lost wages first after a car accident, starting with your own policy, then a relative's, then the vehicle you were in.
In Minnesota, “no-fault” is the first option for pursuing financial recovery after a car accident.
The Minnesota No-Fault Act says that each injured person may potentially receive up to $20,000 for payment of medical bills and lost wages, even if they are at fault for the accident. A priority set by law determines whose insurance policy will be responsible for your no-fault expenses:
- In most cases, your auto insurance is the first priority, even if you were not driving at the time of the accident (and even if your vehicle was not involved).
- If you did not own an insured vehicle at the time of the accident, the second priority is the policy of a family member who lives with you and owns an insured vehicle, often referred to as a “resident relative.”
- The third priority is an “occupied vehicle,” or the insurance of the vehicle containing the injured person. If the injured person was a pedestrian or a cyclist, then the third priority would be the insurance of the vehicle that hit them.
- Minnesota also has an Assigned Risk Plan, which may be able to provide coverage for people not covered by any of the higher priorities.
If a different insurer ends up paying bills that weren't theirs to pay, a legal concept called subrogation may come into play. For example, your health insurance covers a bill that your auto policy should have paid.
Liability Claims for Passengers
If the “no-fault” path doesn’t provide sufficient financial recovery, the second avenue is a claim against the at-fault person or party. This part of your claim is called the “liability” portion. Often, insurance companies will fight over who is at fault, and sometimes multiple parties will share the blame for the accident.
- Unlike drivers involved in a car accident, passengers are rarely found at fault, since they did not control any vehicles at the time of the accident. As a passenger, you are likely to have a claim against either the driver of the vehicle you were riding in or the driver of the other vehicle.
- However, you could get caught in the middle of a liability fight if the insurance companies covering the drivers cannot agree on who was at fault. This could delay your ability to seek compensation for your claim. This fight may also mean you will be asked to provide recorded statements to multiple insurers, attend an independent medical examination, or otherwise provide information to help determine the facts of the accident and the extent of damages.
- Seeking compensation from the at-fault driver’s insurance company can be further complicated when the at-fault driver is a close relative. In Minnesota, you have the right to sue the at-fault driver of the vehicle, regardless of relation. Unfortunately, this means that you may need to file a lawsuit against your own relative to get the compensation that you are entitled to according to law.
What Should You Do If You Were a Passenger in a Car Accident?
If you're a passenger and you're not sure whose insurance applies to you, here are three steps to take:
- Tell your attorney about every policy connected to your household. This includes your own auto insurance, any policy held by a relative you live with, and the policy on the vehicle you were riding in. Your attorney needs the full picture to determine the correct priority.
- Don't assume you're excluded just because you weren't driving. Passengers are covered under Minnesota's no-fault system, too.
- Get help early if insurers disagree on fault. A dispute between insurance companies can delay your compensation. Being proactive early in your case can help keep things moving.
For help navigating a car accident, dealing with insurance companies, and getting full financial recovery, contact Aaron Ferguson Law or call 651-493-0426 to complete a free consultation.
