What Is A No-Fault State?

In a no-fault state, you’ll file injury claims through your own insurer, which can get you your money faster while simultaneously limiting your rights to sue.
Written by Liz Jenson
Edited by Sarah Gray
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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 at fault. This differs from at-fault states, where auto accident victims file injury claims with the at-fault driver’s insurance company.

What is a no-fault state?

In a no-fault state, drivers will need to
file auto insurance claims
with their own insurance provider regardless of who caused the accident. While the person who caused the accident will still be required to pay for property damage, in most cases you can only file a personal injury claim with the at-fault driver’s insurance after you’ve exhausted your coverage limits. 
No-fault states have these insurance laws 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 passenger(s) were injured, your rights to sue other drivers for damages are limited.
This also means
state minimum car insurance laws
are different in no-fault states. 
State insurance laws still require
liability coverage
for property damage, and all no-fault states except
Florida
still require
bodily injury coverage
as well. However, you’ll also need to add
personal injury protection (PIP)
to your policy to cover your medical expenses following an accident.
Here are some of the pros and cons of living in a no-fault state:
iconPros
PIP is part of required minimum coverage
You get help with medical bills faster
Even if you cause the accident, you 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
iconCons
Your insurance pays for your injuries, no matter who caused the accident, so you may have to pay a
deductible
.
The other insurance company usually only covers your medical costs after you reach your PIP limits, even if the other driver is at fault.
If you’re at fault, damages to your vehicle are only covered if you purchase
collision insurance
.
If the other driver is at fault, then it can be harder to bring them to court.

Which states are no-fault states?

In the US, there are currently 12 no-fault states. These states are:
FL
,
HI
,
KS
,
KY
*,
MA
,
MI
,
MN
,
NJ
*,
NY
,
ND
,
PA
*,
UT
* In
Kentucky
,
New Jersey
, and
Pennsylvania
, drivers are allowed to choose whether they would prefer to be held to a no-fault system or an at-fault system. 
Choosing a full-tort or tort-liability policy in these three states gives you the same coverage and rights to sue as those you’d find in an
at-fault state
. However, your insurance won’t cover you as thoroughly this way and, in Kentucky, you lose your access to PIP coverage1.

Add-on no-fault states

PIP is required for no-fault insurance, but there are currently 10 US 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
,
MY
,
NH
,
OR
,
SD
,
TX
,
VA
,
WA
,
WI
While you can get no-fault insurance in these states, they aren’t officially considered no-fault states by the Insurance Information Institute because they have fewer restrictions on a driver’s rights to sue for damages after an accident2.
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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 still require bodily injury liability coverage, too. Three also require
uninsured/underinsured motorist
coverage (UM/UIM), an additional coverage that protects you if you get into an accident with someone who has inadequate insurance coverage.
Here is a breakdown of
state minimum insurance requirements
for each of the 12 no-fault states: 
State
Minimum insurance requirements
  • $25,000/$50,000 BI
  • $25,000 PD
  • $4,500 PIP
  • $25,000/$50,000 uninsured/underinsured motorist coverage (UM/UIM)
  • $25,000/$50,000 BI
  • $25,000 PD
  • $10,000 PIP
  • $20,000/$40,000 BI
  • $5,000 PD
  • $8,000 PIP
  • $20,000/$40,000 UM/UIM
  • $50,000/$100,000 BI
  • $10,000 PD
  • $50,000–$25,000 PIP
  • $1 million property protection insurance (PPI)
  • $30,000/$60,000 BI
  • $10,000 PD
  • $40,000 PIP
  • $25,000/$50,000 UM/UIM
  • $15,000/$30,000 BI
  • $5,000 PD
  • PIP: $15,000
  • $25,000 per person/$50,000 UM/UIM
  • $25,000/$50,000 BI
  • $10,000 PD
  • $50,000 PIP
  • $25,000/$50,000 BI
  • $25,000 PD
  • $30,000 PIP
  • $25,000/$50,000 UM/UIM
  • $25,000/$65,000 BI
  • $15,000 PD
  • $3,000 PIP 

Why do no-fault states require PIP coverage?

Personal injury protection coverage (PIP) is required in no-fault states because drivers are responsible for their own medical bills following an accident.
PIP pays for a variety of expenses associated with injuries you or your passengers sustain in a vehicle accident. When appropriate, this coverage also extends to some additional expenses and bills that may result from your injuries, such as:
  • Surgical operations
  • Hospitalization
  • Lost wages
  • Continuing care
  • 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 at fault in the accident. If the other driver caused the accident, their liability insurance will still pay for property damage, but your PIP will cover your personal injury expenses regardless of who’s at fault.
Learn more:
MedPay vs. PIP

How much does car insurance cost in no-fault states?

On average, drivers in no-fault states pay $183 per month for their car insurance. Here’s how much drivers pay monthly on average in every no-fault state:
State
State minimum insurance
Full coverage
$174
$312
$82
$213
$55
$135
$109
$199
$60
$129
$118
$197
$67
$133
$93
$181
$122
$211
$73
$152
$53
$133
$67
$132
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Which insurance companies are the cheapest in no-fault states?

Different insurance providers use different algorithms to determine their car insurance quotes, meaning no one auto insurance company will offer the best premiums to everyone. However, here are some of the providers with affordable average monthly rates in no-fault states:
Insurance provider
State minimum coverage
Full coverage
$93
$179
$81
$169
$75
$307
$74
$316
$72
$126
$81
$164
$84
$115

FAQ

What’s the difference between PIP and liability coverage?

PIP
and
liability coverage
are two different types of insurance. Liability coverage pays for the other drivers’ property damage and injuries to another party for which you’re found legally liable, whereas PIP covers medical expenses for you, your passengers, household members, and pedestrians.

Does health insurance cover car accident injuries in no-fault states?

While PIP and
MedPay
are the primary methods of payment for injuries sustained in a motor vehicle accident, health insurance may sometimes kick in once you’ve reached your coverage limits. This is especially true if you or your passengers suffer severe injuries as a result of the crash, since these may require more expensive treatments beyond the scope of your PIP coverage.

How do fault laws affect car insurance rates in no-fault states?

Drivers in no-fault states are required to purchase additional insurance coverage (including PIP,
UM/UIM
, and/or MedPay) to pay for injuries that they may sustain in a car accident. Living in a no-fault state means your insurance costs will be 51% higher on average than they would be in an
at-fault state
since you’ll be legally required to purchase these additional protections. 

Meet our experts

avatar
Liz Jenson
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details.
Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
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Sarah Gray
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Licensed Insurance Agent — Expert Insurance Writer and Editor
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car.
Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.

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