Map Options
No-Fault States [Updated August 2023]
If you live in the United States and you own a vehicle, you’re probably already familiar with car insurance. When you have car insurance, you pay an insurance provider a premium to protect yourself from financial loss if you’re involved in a car accident.
There are two main types of auto insurance. The first is known as tort car insurance. Under this insurance, the fault is assigned to one party involved in the accident. For example, if a person fails to stop for a red light and causes an accident, the person running the light would be deemed responsible for the accident. The at-fault party would be responsible for covering medical bills and property damage. A person without insurance would be personally accountable for these costs. If they did not pay, the other party could sue. If the person has automobile insurance, all or most of these costs will be covered depending on the at-fault party’s coverage limits.
The other type of car insurance laws are known as “no fault.” This means that all drivers cover their expenses as a result of an accident, regardless of who was at fault. Let’s say Vehicles A and B are in a car accident. Vehicle A would file with their insurance to cover their expenses as a result of the accident. Vehicle B would file with their insurance to cover their costs.
There are a few states that have no-fault car insurance laws in place. As of 2019, those states are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. Under no-fault laws, drivers are guaranteed to receive payment regardless of who caused the accident. However, many states also have laws in place that prevent drivers from suing the other party involved in the accident. Laws vary by state. Some of the states on this list, including New Jersey and Pennsylvania, offer drivers their choice of tort or no-fault coverage. It all may seem confusing, but drivers should always have an understanding of the laws in their states by doing online research or speaking with an experienced insurance agent.
- No-fault states are those in which both drivers involved in an accident must file a claim with their own insurance company to pay for their personal injuries regardless of which driver is to blame for the accident. The driver who was at fault (or their insurance company) still pays for all material damages.
- No-fault states typically require drivers to have a minimum amount of no-fault insurance, also called personal injury protection (PIP) coverage, to pay for their personal injuries.
- No-fault states differ from at-fault states, also called tort liability states, in which the at-fault driver is responsible for paying for both damages and injuries.
- Three no-fault states have "choice no-fault" systems in which a driver can pay higher rates to have an at-fault policy instead, which preserves their option to sue another driver for medical costs in the event of an accident.
- Several states have "add-on no-fault" insurance, in which drivers can choose to have no-fault insurance by purchasing PIP coverage.