Will no-fault insurance cover my lost wages?


You are entitled to at least $20,000 in lost income replacement through your no-fault insurance. [Minnesota Statutes 65B.44] However, no-fault will pay only 85% of your gross income up to a maximum of $500 per week. You may be able to make up any shortfall later on through your bodily injury claim against the at-fault driver.

For example: If you make $200 per week you will receive only 85% of $200 which is $170. This is the maximum your no-fault insurance will pay based on $200 per week. Therefore, you will lose $30 per week. Later on you may be able to sue the at fault driver for this $30 per week shortfall. However, if you make a $1,000 per week, the maximum you will receive is $500 per week.

What do I have to do in order to receive wage loss benefits through no-fault?

1. You must present a doctor's disability slip to your no-fault adjuster (permission to miss work for medical reasons), AND
2. Proof of wage loss must be provided by your employer (your no-fault adjuster will ask you to sign authorizations and will obtain that information directly from your employer).  Be sure to pay close attention to your wage rate and if you have qualified for a pay raise since your injury. Since your wage loss will be calculated based on what you were making for a period of time prior to the crash, you will want to pay close attention to the wage rate that your no-fault insurer is using and confirm that it is accurate. If you can document that a new, higher wage rate has gone into effect for you, or that you had a history of accepting all overtime work and overtime work is now available, it could affect the calculation.

Am I able to receive wage loss benefits if I am only able to return to work part-time?

If you are only able to return to your full-time job on a part-time basis, you may be entitled to continue to receive partial benefits if your disability prohibits full-time return to work.  If you receive short-term or long-term disability coverage you may still be able to qualify for additional compensation for your wage loss shortfall through no-fault.  Depending on the language in your automobile insurance policy, you may be entitled to additional wage loss compensation through your no-fault insurance. Consult your no-fault adjuster or your attorney to determine if you qualify.

If I was receiving unemployment benefits at the time of the accident, but because of the accident I am no longer eligible to receive those benefits, can I receive compensation through no-fault?

You are eligible to receive no-fault wage loss at 100% of your previous unemployment rate, with a maximum benefit of $500 per week.

If I own a small business and have had to hire substitute employees, will I be compensated for this expense?

Costs incurred for substitute employees to perform tasks which are necessary to maintain the income of the injured person and which are normally performed by the injured person, but cannot be performed because of the injury, may be reimbursed up to $500 per week.

Will I get paid for the time I had to miss work because I had to go to a doctor or other accident-related treatment?

You may also be entitled to reimbursement for reasonable travel time and expenses involved in getting to and from the medical treatment. Ask your attorney or your no-fault adjuster. Keep a travel journal in order to track your time and mileage related to your medical treatment.

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