Who Actually Pays in a Personal Injury Case? Understanding the Role of Insurance in Minnesota Injury Claims
At Heuer Fischer, we often speak with people who are hesitant to file a personal injury claim even when they're seriously injured because they're concerned about financially harming the person who caused the accident.
It's a compassionate instinct. But it's also based on a common misunderstanding.
Here's the truth:
In nearly every personal injury case, it is the insurance company, not the individual, who pays the settlement or jury verdict.
Whether you're injured in a car crash, a slip and fall, a dog bite, or another type of accident, insurance is almost always the primary (and often only) source of compensation. Let's break down how this works under Minnesota law and explain the different types of insurance that come into play, including liability insurance, uninsured motorist coverage, and underinsured motorist coverage.
Insurance, Not Individuals, usually pay the Bill
When someone causes an accident, they usually aren't paying damages out of pocket. Instead, their insurance company steps in to cover the costs whether through a negotiated settlement or a jury verdict after trial. That's what insurance is for.
If you're hesitant to make a claim because you don't want to "ruin" someone's life or finances, it's important to understand:
You are not suing them personally. You are holding their insurance company accountable.
Liability Insurance: The Primary Source in Most Cases
Once your no-fault coverage is exhausted, or if you were injured outside of a motor vehicle context (like a fall in a store or dog bite), the at-fault party's liability insurance becomes the main source of recovery.
This could include:
Auto liability insurance for car crashes
Homeowners or renters insurance for property-related injuries
Commercial liability insurance for injuries on business premises
These insurance companies are required to defend and indemnify their policyholders. That means they pay for the damages, not the individual personally (except in rare cases).
Uninsured and Underinsured Motorist Coverage (UM/UIM)
Sometimes the at-fault party either has no insurance or not enough insurance to fully cover your losses. In those situations, your own policy may provide additional protection:
Uninsured Motorist (UM) Coverage
Applies when the other driver has no insurance
Your insurer steps in to pay for your injuries as if they were the at-fault party's insurer
Underinsured Motorist (UIM) Coverage
Applies when the other driver's insurance limits are too low to cover your damages
Your insurer pays the difference between the other driver's coverage and your actual damages (up to your policy limits)
UM and UIM are required to be offered with every auto policy in Minnesota and can make a major difference in serious injury cases. Again, these claims are paid by insurance companies, not the individual who caused the harm.
The term "your own policy" may seem self-explanatory; however, there are many examples where there may be additional available coverage. We strongly suggest you have an attorney who practices in Minnesota and focus on personal injury cases review your case to determine coverage.
When Does an Individual Ever Pay Out of Pocket?
While rare, there are a few limited scenarios where the at-fault person might be personally responsible. In those rare situations, an experienced Minnesota based personal attorney will carefully assess the collectability of any judgment before pursuing it personally and provide you the relevant information.
You're Not Doing Anything Wrong, You're Using the System As It's Meant to Work
Insurance companies collect premiums for exactly this reason cover accidents and injuries caused by their policyholders. Filing a claim doesn't make you vindictive or greedy, it makes you responsible.
You're usually enforcing the promise made by an insurance company to be there when harm occurs.
Let Us Help You Navigate the Process
At Heuer Fischer, we are here to guide you through every layer of available insurance coverage and provide you with information you need to decide how and when to proceed.
We leave no stone unturned when it comes to finding the compensation you deserve and ensuring it comes from the right place: the insurer, not the individual.
Contact James Heuer or Jonathan Fischer today for a free consultation. There's no fee unless we recover compensation for you.
Heuer Fischer serves injured clients across Minnesota
Disclaimer: While we are Minnesota personal injury attorneys, this article is for general informational purposes only and is not intended to be legal advice. Every case is unique, and how the law applies to your specific situation can vary. We encourage you to speak with an attorney directly to understand your rights and options.
At Heuer Fischer, we offer free consultations and are happy to discuss how these principles may apply to your case.