In Minnesota you typically have six (6) years to make claims or sue for injuries or damage resulting from a negligence (tort) automobile accident.

With regards to injuries, actions based on “ordinary negligence,” fall under the six year statute of limitation typically. While cases where an injury was caused by a defective or unsafe condition of real estate, a two year limitation period applies. So for injuries sustained from a car accident it would appear the 6 year limitation applies.

Under Minnesota Statute 541.05 is the portion of MN law that discusses the 6 year statute of limitations for both injuries and personal property. A statute of limitations requires a claim to be settled or lawsuit initiated within a certain period.

So as you can see Minnesota has one of the most generous statute of limitations in the US since many states only allow you 2 to 4 years to make claims or file a lawsuit for damages related to an auto insurance accident. Minnesota’s six year tort statute of limitations (MN Statute 541.05) does not specify when the time limit begins to run. Minnesota courts have held that the period of limitations begins to run when some act of negligence produces at least some measurable harm.

No-fault (PIP) claims are different though and must be made within six months of the accident (MN Statute 65B.44). A MN insurance policy may prescribe a period of not less than 6 months after the date of the accident within which an insured must notify the insurer of the accident and the possibility of a claim for no-fault benefits. You need to include proof of expenses, complete an application for benefits, and submit to a medical examination if requested. Bills should be submitted to the insurance company as they come in. Benefits must be paid within 30 days of presentation to the insurer. A rejection of a claim must be made promptly and in writing by the insurance company.

As for bad faith lawsuits there have been recent law changes in Minnesota regarding this issue. In April 2008, Minnesota Governor Tim Pawlenty signed a bill (S.F. 2822) passed by the Minnesota Legislature that limits liability for "bad-faith" denial of insurance policy benefits. This first-party bad faith law places limits on efforts to expand the ability to bring lawsuits when there are disputed insurance claims.

The new MN law went into affect August of 2008 and excludes third-party bad faith cases and punitive damages. A first-party claim typically refers to a claim (lawsuit) made by an insured against his or her own insurance policy. The law requires that there be proof of knowledge that there was a lack of reasonable basis or that the insurer acted in disregard of a lack of a reasonable basis for denying a claim before a bad faith claim can be brought. Prior to enactment, well-established Minnesota law rejected first-party bad faith causes of action.

So this "bad faith" law imposes liability if a court finds that the insurer knew of the lack of a reasonable basis for denying the benefits of the insurance policy or acted in reckless disregard of the lack of a reasonable basis for denying the benefits of the insurance policy. Under this new law, insurers who fail to make good faith settlement offers when there is a reasonable basis for liability under certain insurance policies may be responsible for up to $250,000 in damages and up to $100,000 in attorney's fees. Damages for violations are determined by the court.

The new law, which appears now under Minnesota Statute 604.18, affects all entities licensed or authorized to transact insurance in MN but for a few exemptions including the Joint Underwriting Associations (JUA). In addition, certain policies produced by non-exempt insurers, such as workers' compensation policies and written agreements of health carriers are exempted from the terms of this section of law.

We are not a legal authority nor give legal advice so if you want to know more about the statute of limitations Minnesota has in place and about bad faith laws you should contact a lawyer that specializes in this area of MN law. The Minnesota Department of Commerce, the insurance regulator for MN, also has a consumer division that may be able to provide you information on these topics.

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