No-Fault Insurance: Definition and State List
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Generally speaking, no-fault insurance requires you to file injury claims with your own insurance company after a car accident, no matter who caused the crash. No-fault insurance can pay for medical bills, lost wages, child care and more, depending on where you live.
No-fault car insurance is required in 12 states, while a few other states allow you to include it as an optional add-on. Some states that require no-fault insurance may allow you to waive it entirely. No-fault insurance is also called personal injury protection or PIP.
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No-fault insurance covers car-related injuries
If you’re injured in a car accident, any medical expenses that come up will be covered by your no-fault insurance. It will cover anyone else in your car, and also covers you as a passenger in someone else’s vehicle if they have the coverage. Depending on the state, no-fault insurance may also cover:
Lost wages if you are unable to work due to the injury.
Substitute services, such as housecleaning or child care.
Funeral expenses if an injury results in death.
Survivor’s loss, or a small death benefit, if the accident results in your death and you leave behind surviving dependents.
» MORE: What does car insurance cover?
No-fault insurance is required in 12 states
There are 17 states, plus Washington, D.C., that offer no-fault insurance. Twelve of those states, also referred to as “no-fault states,” require drivers to carry a minimum amount of no-fault coverage.
The states that require no-fault insurance each have different minimum requirements. Use the table below to see what the minimum no-fault insurance requirements are for your state.
States that offer no-fault insurance | Minimum required |
|---|---|
Can be waived. | |
$15,000 | |
$10,000 | |
$10,000 | |
$4,500 for medical expenses (with additional minimums for other expenses) | |
Can be waived. | |
Can be waived. | |
$8,000 | |
$250,000 (depending on health coverage) | |
$40,000 | |
$15,000 | |
$50,000 | |
$30,000 | |
$15,000 | |
Can be waived. | |
$3,000 | |
Can be waived. | |
Can be waived. | |
*These states require no-fault insurance, but drivers can waive it in writing. | |
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How no-fault insurance pays out varies by state
How your no-fault insurance coverage pays out depends on the state, so take some time to familiarize yourself with your state’s laws. In Florida, no-fault insurance covers only 80 percent of your accident-related medical expenses, up to a $10,000 limit. Meanwhile, no-fault insurance in New York will cover up to $50,000 for your injury bills and your passengers’, but will pay for only 80% of any wages lost.
No-fault insurance in Michigan is unique. Drivers choose their own no-fault insurance coverage limit from several options, including:
Unlimited coverage.
Up to $500,000 in coverage.
Up to $250,000 in coverage.
Up to $50,000 in coverage if you are enrolled in Medicaid and another member of your household has insurance that will cover injuries from a car accident.
Opt out of PIP medical coverage if you have Medicare and another member of your household has a car insurance or health insurance policy that pays for injuries from car accidents.
Can you sue with no-fault insurance?
With the exception of Delaware, all states that require no-fault insurance operate under “no-fault” laws. In these “no-fault” states, you cannot sue an at-fault driver after an accident unless your injury is very serious, such as losing a limb or suffering paralysis, or unless your medical expenses from the injury exceed the state’s minimum dollar amount required to sue.
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