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.READ MORE: Liquor Store Worker Shot Twice By Shoplifter In St. Paul
“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.READ MORE: Minnesota Weather: Next Dose Of Snow Could Make For Commute Headaches
“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.MORE NEWS: Archambault Lifts Coyotes Over Tommies 90-79
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.