States with no-fault insurance

When it comes to auto insurance, individual states have the ability to create their own laws and requirements. Some states are so-called no-fault states, where drivers hurt in a car accident are required to file a claim with their own insurance no matter who caused the collision. Other states are at-fault states, which require the at-fault driver’s insurance to cover any injuries or related expenses.

There are currently 12 no-fault states: Florida, Minnesota, Hawaii, New Jersey, Kansas, New York, Kentucky, North Dakota, Massachusetts, Pennsylvania, Michigan, and Utah. Puerto Rico also adheres to the no-fault law.

Drivers in no-fault states are required to purchase personal injury protection (PIP) as part of their car insurance policy in order to cover injuries to them or their passengers.

Read more:

• What is no-fault insurance?
• States with no-fault insurance
• No fault-states vs. PIP-required states
• What’s not covered by no-fault insurance?

What is no-fault insurance?

No-fault car insurance states require drivers involved in an accident to file a claim for bodily injury and medical expenses with their own insurance company, regardless of who was at fault. In states with no-fault laws, policyholders are required to purchase a minimum amount of personal injury protection (PIP), though the exact amount depends on the state. (This is as opposed to an at-fault or tort state, where injury to you or your passengers is covered by the at-fault driver’s liability coverage).

PIP insurance will pay up to your specified limit for medical bills and any expenses related to an injury, like lost wages, funeral expenses, and other out-of-pocket costs if you and your passengers are involved in an accident.

Under no-fault laws, injured drivers may only be able to sue at-fault drivers if the severity or cost of their injuries meet the verbal or monetary threshold in their state. Verbal thresholds mean injuries must meet descriptions of seriousness set by the states, including permanent injury or loss of a body function, and monetary thresholds mean the costs of medical bills must exceed a certain dollar amount.

No-fault insurance states

The following 12 states and Puerto Rico are considered no-fault states and require drivers to carry PIP, but no-fault thresholds and conditions vary state to state.

Florida

Drivers in Florida are required to carry $10,000 of PIP insurance and are held to a verbal threshold.

Minnesota

Drivers in Minnesota are required to carry $20,000 of PIP insurance per accident and $20,000 for loss of income per accident and are held to a monetary threshold.

Hawaii

Drivers in Hawaii are required to carry $10,000 of PIP insurance and are held to a monetary threshold.

New Jersey

Drivers in New Jersey are required to carry $10,000 of PIP insurance per accident, however, PIP coverage can be rejected in writing.

New Jersey is also one of three “optional no-fault” states, meaning drivers can choose whether they’ll be held to a no-fault system or not. New Jersey drivers also retain the right to sue for any auto-related injury.

Kansas

Drivers in Kansas are required to carry $4,500 of PIP insurance per accident and are held to a monetary threshold.

New York

Drivers in New York are required to carry $50,000 of PIP insurance per person and are held to a verbal threshold.

Kentucky

Drivers in Kentucky are required to carry $10,000 of PIP insurance per accident, however PIP coverage can be rejected in writing.

Kentucky also has a monetary threshold, but since it is one of three optional no-fault states, drivers can choose whether they’ll be held to this no-fault system or not. Drivers in Kentucky also retain the right to sue for any auto-related injury.

North Dakota

Drivers in North Dakota are required to carry a maximum of $30,000 of PIP insurance per person and are held to a monetary threshold.

Massachusetts

Drivers in Massachusetts are required to carry $8,000 of PIP insurance per person and are held to a monetary threshold.

Pennsylvania

Drivers in Pennsylvania are required to carry $5,000 of PIP insurance per person and are held to a verbal threshold, but have the right to reject the no-fault system since PA is one of three states with an optional no-fault law. Pennsylvania motorists also retain the right to sue for any auto-related injury.

Michigan

PIP coverage is required in Michigan but the requirements vary depending on the amount of health insurance coverage drivers have, and drivers are held to a verbal threshold.

Michigan drivers are also required to carry a minimum limit of $1 million in property protection insurance (PPI) which covers property damage regardless of who caused it.

Utah

Drivers in Utah are required to carry $3,000 of PIP insurance per person and are held to a monetary threshold.

No fault-states vs. PIP-required states

Not every state that requires PIP insurance is a no-fault state. No-fault states are specifically those that require drivers to file injury claims with their own insurance, and that have strict rules around car accident lawsuits. The following states require drivers to have PIP coverage as part of their car insurance, but are not no-fault states:

• Arkansas
• Delaware
• Maryland
• Oregon

What’s not covered by no-fault insurance?

Personal injury protection, also called no-fault insurance, covers drivers and passengers’ medical expenses after they’ve been in an accident, but it doesn’t extend to property. This means that no-fault insurance doesn’t cover damage to your vehicle, damage to another person’s property, or vehicle theft. If you’re in an accident caused by another driver, their liability coverage would pay for the damage they caused to your car.

You can also add comprehensive and collision coverage to your policy if you’d like to protect your car from damage in the event that you caused an accident, or if your car is damaged by a non-driving peril like hail, flooding or theft. Like other types of car insurance coverage, PIP, or no-fault insurance, will only cover you up to your coverage limits.