Does no-fault insurance cover car damage?

No-fault state means that drivers are responsible for their own medical expenses in the event of an accident regardless of who causes the collision. In most no-fault states, drivers are required to use personal injury protection (PIP) insurance to cover their own medical bills and related expenses.

Additionally, no-fault states restrict your … read full answerright to sue for damages to only state-specified cases where severe injuries are sustained or expenses surpass a certain threshold.

These rules only apply to bodily injuries, though. Whichever driver is found to be at fault, according to the state’s negligence laws, will still be responsible for the victim’s property damages.

What Key Features of No-Fault States Mean for Drivers

The opposite of a no-fault state is called a tort state. In tort states, drivers are not limited in their ability to sue after an accident, and fault is used to determine responsibility for both bodily injury costs and property damage.

To learn more, check out WalletHub’s guide to no fault insurance.

When you are not at fault in an accident, the other driver’s car insurance typically pays for your expenses. If it takes a while to determine fault, you can file a collision claim with your insurer, which will then try to recover the cost of the claim and your deductible from the at-fault driver’s insurer. In most states, you should file injury claims directly with the at-fault driver’s insurer, though no-fault states require you to use your own insurance to pay for medical bills.… read full answer

How Car Insurance Works When You’re Not At Fault

• The at-fault driver’s bodily injury liability insurance will cover your medical expenses in most states.
• If you live in a no-fault state, you’ll need to file medical claims with your own personal injury protection (PIP) insurance.
• The other driver’s property damage liability insurance will cover repairs to your car and other items, like fences and mailboxes.

If the at-fault driver does not have insurance, you can file a claim with your own uninsured motorist (UM) insurance, if you have it. Depending on your policy, you might also have underinsured motorist coverage (UIM), which applies if the other driver’s liability limits aren’t high enough to pay for all the damage.

For more information, check out WalletHub’s guide on what to do after a car accident.

The main types of insurance that cover damage to your car are collision and comprehensive insurance. Collision insurance repairs or replaces your car when it’s damaged in an accident, while comprehensive insurance applies to damage caused by something other than a wreck, like vandalism or a natural disaster. Uninsured/underinsured motorist coverage can also cover damage to your car, but only in certain situations and states.… read full answer

Types of Insurance that Cover Damage to Your Car

• Collision insurance
• Comprehensive insurance
• Uninsured/underinsured motorist insurance (in some states)

When purchased with liability insurance and any other state-mandated coverage, collision and comprehensive insurance make a full coverage policy. There are no state laws that require drivers to purchase collision or comprehensive coverage, but most lenders and lessors require both types of insurance for leased or financed vehicles. Even if you’re not required to have collision and comprehensive insurance, they’re usually a good investment, since they protect you from paying out of pocket for expensive vehicle repairs.

To learn more, check out WalletHub’s guide to the different types of car insurance.