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No Fault Insurance

There are currently 12 no fault states. If you live in one of them, your auto insurance works a little differently than standard policies do.

This page:

  • Describes how no fault insurance works

  • Lists the benefits on a standard no fault policy

  • Links you to a guide on no fault insurance in your state

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Keep reading if you live in: DC, FL, HI, KS, KY, Mass, MI, MN, NJ, NY, ND, PA, UT.

No fault auto insurance is widely misunderstood. It's best to start at the beginning:

How no fault insurance works

"No fault insurance" is a general term that is used to describe any auto insurance system that both requires drivers to carry insurance for their own protection, and that places limitations on their ability to sue other drivers for damages.

In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of who was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies.

Under a pure no fault system, drivers would be completely covered by their own policy, and would be barred from ever suing another driver for damages.

However, no state uses a pure system. Instead, all "no fault" states actually use parts of both the no fault system and the standard liability system (under which you're financially responsible for the cost of damages you cause). States do this by permitting lawsuits in certain cases.

Obviously, it's a good idea to understand your state's requirements before you shop for insurance.

Lucky for you, we have an auto insurance guide for each no fault state. Read about your state's laws in our state-by-state guide and we'll even provide links to several providers in your area.

Why require no fault insurance? It does guarantee every driver immediate medical treatment in the event of an accident, which is a good thing. And it's is also intended to reduce the legal and administrative fees associated with insurance claims. Which, in turn, should mean lower premiums.

Unfortunately, often times the liability issues that still remain will actually drive premium costs up.

The no fault policy

The actual no fault part of your auto insurance policy is usually called personal injury protection, or PIP. But parts of the policy may come under different names (like OBEL, for "optional basic economic loss").

Different states' PIP packages cover different things, but in general benefits will include most injury-related expenses. The most common benefits are medical costs, loss of wages, compensation for loss of services, funeral expenses, and death benefits.

The amount and type of PIP required varies from state to state. In Pennsylvania, Kentucky, and the District of Columbia, drivers can actually choose whether or not they want to purchase PIP and drive under the no fault system. (If not, they operate under the standard liability, or tort, system.)

And remember, because no state is pure no fault, drivers can always be held financially responsible for the cost of injuries they cause in certain circumstances.

Some states allow injured parties to sue if their injuries meet certain standard for severity, while others allow it when total costs reach a certain dollar level. That's why liability insurance is still so important, and why and every no fault state requires it.

Buying no fault insurance online

Unfortunately, no fault insurance is usually expensive (though not always). So if you live in a no fault state, it's doubly important that you shop around for the best deal.

Fortunately, getting multiple insurance quotes from providers in your area is fairly easy online. Try one of following quotes engines:

If you live in Hawaii :


If you live in Massachusetts :


If you live in any of the other no fault states :

Get a quote from ComparisonMarket

Or see if there are other providers that offer online quotes in your state.

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This wrebsite provides general information for educational purposes only and is not intended to be legal advice. We make no guarantees as to the validity of the information presented. Your particular facts and circumstances, and changes in the law, must be considered when applying insurance law. You should always consult with a competent auto insurance professional licensed in your state with respect to your particular situation.