WalletHub, Financial Company
@WalletHub
No, no-fault insurance does not cover car damage. No-fault insurance does not cover property damage of any kind, instead, it covers injuries sustained by the policyholder and their passengers in a car accident, regardless of whether the policyholder or another driver was at fault. This is due to the fact that no-fault insurance usually refers to personal injury protection (PIP) or medical payments (MedPay) insurance.
Even in no-fault states, policyholders need to file a claim with the at-fault driver’s property damage liability insurance if their car was damaged and they were not responsible. Otherwise, drivers can use their own collision insurance to pay for damage to their cars regardless of who was at fault. Drivers who were at fault but do not have collision coverage will need to pay for repairs out of pocket.
For more information, check out WalletHub’s guide to no-fault insurance.
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