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:
| Pros | Cons |
|---|---|
| PIP is part of required minimum coverage | Your insurance pays for your injuries, no matter who caused the accident, so you may have to pay a deductible. |
| You get help with medical bills faster | The other insurance company usually only covers your medical costs after you reach your PIP limits, even if the other driver is at fault. |
| Even if you cause the accident, you still get some insurance help with claims | If you’re at fault, damages to your vehicle are only covered if you purchase collision insurance. |
| No-fault state laws place limits on lawsuits, so you have some protection if you cause an accident | If the other driver is at fault, then it can be harder to bring them to court. |
Learn more: What is an at-fault accident?
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, MD, 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.
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 |
|---|---|
| Florida | $10,000 property damage liability (PD) $10,000 PIP |
| Hawaii | $20,000 per person/$40,000 per accident bodily injury liability (BI) $10,000 PD $10,000PIP |
| 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–$25,000 PIP $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 | $15,000/$30,000 BI $5,000 PD PIP: $15,000 $25,000 per person/$50,000 UM/UIM |
| New York | $25,000/$50,000 BI $10,000 PD $50,000 PIP |
| 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 |
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.
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 |
|---|---|---|
| Florida | $174 | $312 |
| Hawaii | $82 | $213 |
| Kansas | $55 | $135 |
| Kentucky | $109 | $199 |
| Massachusetts | $60 | $129 |
| Michigan | $118 | $197 |
| Minnesota | $67 | $133 |
| New Jersey | $93 | $181 |
| New York | $122 | $211 |
| North Dakota | $73 | $152 |
| Pennsylvania | $53 | $133 |
| Utah | $67 | $132 |
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 |
|---|---|---|
| AAA | $93 | $179 |
| Allstate | $81 | $169 |
| Bristol West | $75 | $307 |
| GEICO | $74 | $316 |
| Nationwide | $72 | $126 |
| Progressive | $81 | $164 |
| Travelers | $84 | $115 |
FAQ
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What’s the difference between PIP and liability coverage?
-
Does health insurance cover car accident injuries in no-fault states?
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How do fault laws affect car insurance rates in no-fault states?
Sources
- https://insurance.ky.gov/ppc/newstatic_info.aspx?static_id=24 ↩︎
- https://www.iii.org/article/background-on-no-fault-auto-insurance ↩︎
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.
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.
