In a no-fault insurance state, auto insurance laws require you to file any injury claims with your own insurance company regardless of who was found at fault. No-fault insurance, also known as Personal Injury Protection (PIP), covers medical expenses and lost wages, while property damage is covered separately through property damage liability or collision insurance.
This differs from at-fault states, where auto accident victims file injury and property damage claims with the insurance company of the driver who was found at fault.
What is a no-fault state?
In a no-fault state, drivers file auto insurance claims with their own insurance provider, regardless of who caused the accident. The person who caused the accident will still be required to pay for property damage, but in most cases you can only file a personal injury claim with their insurance company after you’ve exhausted your own coverage limits.
No-fault states have these insurance laws in part to reduce the number of small claims court cases resulting from car accident-related disputes. However, this also means that after an accident in which you or your passengers were injured, your rights to sue the other driver for damages are limited.
It also means state minimum car insurance laws are different in no-fault states. Even in a no-fault state, insurance laws require liability coverage for property damage, and all no-fault states except Florida still require bodily injury coverage. However, you’ll also need to add personal injury protection (PIP) to your policy to cover your medical expenses following an accident.
Pros and cons of living in a no-fault state
Pros
- PIP is part of required minimum coverage, so every registered driver must have it.
- You’ll generally get help with medical bills faster.
- Even if you cause the accident, you’ll likely still get some insurance help with claims.
- No-fault state laws place limits on lawsuits, so you have some protection if you cause an accident.
Cons
- Your insurance pays for your injuries no matter who caused the accident, so you’ll likely have to pay a deductible if your plan comes with one.
- The other party’s insurance company usually only covers your medical costs after you reach your own PIP limits, even if the other driver is at fault.
- In an accident where you’re found at fault, damages to your vehicle are only covered if you purchase separate collision insurance.
- If the other driver is at fault, it can be harder to bring them to court.
Learn more: What is an at-fault accident?
What states are no-fault?
State auto insurance laws vary widely but generally fall into four categories: no-fault, tort liability (at-fault), choice no-fault and add-on no-fault. The key differences lie in whether lawsuits are restricted, if your own insurer covers initial costs regardless of fault and how certain claims are processed regardless of fault.
So, which states are no-fault?
- No-fault states: FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, UT.
- Choice no-fault states: In Kentucky, New Jersey, and Pennsylvania, drivers are allowed to choose to be held to a no-fault system or an at-fault — aka “tort” — system. These are called “choice no-fault” states. Opting for a full-tort or tort-liability policy in these three states gives you the same coverage and rights to sue as those you’d have in an at-fault state. However, your insurance won’t cover you as thoroughly if you opt for this, and in Kentucky, you’ll lose access to PIP coverage.
- Add-on no-fault states: PIP is required for no-fault insurance, but there are currently several states that allow drivers to add optional PIP coverage to their at-fault car insurance policy. These states, called add-on no-fault states, include: AR, DE, MD, NH, OR, SD, TX, VA, WA and WI. While you can get no-fault insurance in these states, they aren’t officially considered no-fault by the Insurance Information Institute because they have fewer restrictions on a driver’s rights to sue for damages after an accident.
- Tort liability states, or at-fault states: All other states are known as at-fault states. Anyone found at fault in a car accident here can be sued for damages. This includes both direct costs like medical bills and property damage and indirect costs like pain and suffering.
How much car insurance is required in no-fault states?
Every true no-fault state requires drivers to carry property damage liability coverage, and all except Florida also require bodily injury liability coverage. Of the true no-fault states, six also require uninsured/underinsured motorist coverage (UM/UIM) for bodily injury and property damage, an additional coverage in case you get into an accident with someone who has inadequate insurance coverage. Here is a breakdown of state minimum insurance requirements for each no-fault state.
| State | Minimum insurance requirements |
| Florida | $10,000 PD $10,000 PIP |
| Hawaii | $20,000/$40,000 BI $10,000 PD $10,000 PIP |
| Kansas | $25,000/$50,000 BI $25,000 PD $4,500 PIP $25,000/$50,000 uninsured/underinsured motorist coverage (UM/UIM) |
| Kentucky | $25,000/$50,000 BI $25,000 PD $10,000 PIP |
| Massachusetts | $20,000/$40,000 BI $5,000 PD $8,000 PIP $20,000/$40,000 UM/UIM |
| Michigan | $50,000/$100,000 BI $10,000 PD $50,000–unlimited PIP (Medical PIP optional) $1 million property protection insurance (PPI) |
| Minnesota | $30,000/$60,000 BI $10,000 PD $40,000 PIP $25,000/$50,000 UM/UIM |
| New Jersey | $25,000/$50,000 BI $25,000 PD $15,000 PIP $25,000 per person/$50,000 UM/UIM |
| New York | $25,000/$50,000 BI $50,000/$100,000 in case of death $10,000 PD $50,000 PIP $25,000/$50,000 Supplemental Underinsured/uninsured Motorist coverage (SUM) |
| North Dakota | $25,000/$50,000 BI $25,000 PD $30,000 PIP $25,000/$50,000 UM/UIM |
| Pennsylvania | $15,000/$30,000 BI $5,000 PD $5,000 PIP or Medical payments coverage (MedPay) |
| Utah | $25,000/$65,000 BI $15,000 PD $3,000 PIP |
PIP is required in no-fault states because drivers are responsible for their own medical bills following an accident, and the coverage pays for a variety of injury-related expenses. When appropriate, this coverage extends to some additional expenses and bills that may result from your injuries, such as:
- Hospital expenses and continuing care.
- Lost wages.
- Household services (limited).
- Childcare (limited).
- Funeral expenses.
- Death benefit (cash payout).
Your PIP insurance pays up to the limits of your policy’s coverage, regardless of whether you are found at fault in the accident. If the other driver caused the accident, their liability insurance still pays for property damage, but your PIP will cover your personal injury expenses.
How much does no-fault insurance cost?
Drivers in no-fault states can expect to pay a little more (upwards of 15%) for their car insurance, however rates vary by state.
Which insurance companies are the cheapest in no-fault states?
Insurance providers use different algorithms to determine their car insurance quotes, meaning no one auto insurance company will offer the best universal premiums. Here are some of the providers with affordable average monthly rates for minimum coverage in no-fault states quoted to Jerry customers:
|
Insurance Company
|
Avg Monthly Quote
|
|---|---|
| Bluefire | $74 |
| Aspire Advantage | $96 |
| First Acceptance | $118 |
| Anchor General | $118 |
| Safeco | $123 |
| Freedom | $144 |
| Aspen | $146 |
| Kemper | $150 |
| Commonwealth Insurance | $162 |
| Electric | $171 |
FAQ
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What’s the difference between liability and PIP coverage?
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Does health insurance cover auto accidents in no-fault states?
Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.
Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.
