Broadly speaking, there are 2 types of insurance systems in the United States:
Fault-based insurance systems. In a conventional fault-based insurance system, injured parties pursue compensation for their injuries from the party responsible (at fault) for the accident.
No-fault insurance systems. In a conventional no-fault insurance system, injured parties first seek compensation for their injuries from their own insurance company regardless of who’s responsible for the accident.
Minnesota is 1 of a small handful of states to adopt a no-fault insurance system.
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The North Star State adopted its no-fault system in 1971 to help ease the burden of courts and to ensure prompt treatment for accident victims.