No-Fault Insurance: Definition and State List

No-fault insurance pays for medical bills, lost wages and other expenses if you’re injured in a crash, no matter who is at fault.
Ben Moore
By Ben Moore 
Reviewed by Brenda J. Cude
GettyImages-493378417-What Is No-Fault Insurance?

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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.

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.

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.

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.

Frequently asked questions

In no-fault states, drivers must file an insurance claim with their own car insurance after an accident, no matter who caused the crash. This differs from at-fault states where claims are generally filed with the insurance company of the person who caused the crash.

In no-fault states, drivers can only sue another party if monetary or physical damages pass a certain threshold. For example, even though Kentucky is a no-fault state, an injured driver can sue if their medical expenses exceed $1,000.

Yes, Florida is a no-fault state. All drivers in Florida must have $10,000 of personal injury protection coverage.

Texas is a no-fault state. Drivers must carry at least $2,500 in PIP coverage. However, in Texas, drivers can waive no-fault insurance in writing.

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