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Insurance Industry Pushes Reform of Minnesota’s No-Fault System

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(credit: Jupiter Images)

(credit: Jupiter Images)

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By Steve Murphy, NewsRadio 830 WCCO

MINNEAPOLIS (WCCO) — Legislation that would reform Minnesota’s “no fault” car insurance system is under consideration at the capitol. And the industry thinks the effort has traction this time around.

“Really, no-fault doesn’t work the way it was intended to work,” says Mark Kulda of the Insurance Federation of Minnesota. “So Minnesota consumers are kind of overpaying for their auto insurance.”

NewsRadio 830 WCCO’s Steve Murphy Reports

Kulda argues that no-fault opens the door to fraud by aggressive chiropractors and other providers.

“The fraud situation in Minnesota is out of control,” he said.

The federation said the average Minnesota driver pays $720 a year for no-fault coverage while Iowans pay $520 for traditional insurance.

The insurance industry is hopeful the new Republican majority in both houses will look favorably on reform.

Among those wanting to keep no-fault in Minnesota are not only trial lawyers but also hospitals, who like knowing who’s going to pay the medical bills.

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