Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
After a car accident in Minnesota, you can face out-of-pocket expenses for a rental vehicle or loss of use when the at-fault driver’s policy limits end. Here’s how to claim these costs:
1. Leverage No-Fault PIP Transportation Benefits: Under Minn. Stat. § 65B.44, Minnesota’s No-Fault Act covers necessary substitute transportation expenses and reasonable loss of use of your vehicle. Submit your rental receipts and proof of loss-of-use to the at-fault insurer as part of your PIP claim.
2. Use Your Rental Reimbursement Coverage: If you purchased optional rental reimbursement as part of your collision or comprehensive policy, file a claim with your own insurer. They will pay rental costs up to your policy limits and pursue reimbursement (subrogation) from the at-fault insurer.
3. Make an Underinsured Motorist (UIM) Claim: If the at-fault driver’s liability limits are exhausted, you can claim under your UIM coverage for additional rental or loss-of-use expenses. Minnesota law Minn. Stat. § 65B.49 requires insurers to offer UIM, which can cover these gaps.
4. Bring a Direct Tort Suit Against the Driver: You can sue the at-fault driver personally for damages exceeding policy limits if they have sufficient assets. Document your actual rental costs or fair-market loss-of-use value to support your claim for special damages.
5. Document and Monetize Loss of Use: To recover loss-of-use damages, keep all rental invoices or evidence of local unbiased rental rates to prove fair rental value. Maintain a detailed log of each day you could not use your vehicle.
Helpful Hints
- File promptly. Submit your PIP and rental reimbursement claims immediately after the accident.
- Keep receipts and rental agreements. Detailed records strengthen your claim.
- Review your policy limits. Know your rental reimbursement and UIM limits before an accident.
- Obtain a written loss-of-use evaluation from a rental agency or mechanic.
- Consult a qualified attorney early. Even if limits are low, legal guidance can maximize recovery.