Is North Dakota a no-fault state?

If you’re at fault in a car accident, your liability insurance pays for the other driver’s car repairs and will likely cover any doctor’s bills if they’re injured. No-fault states are the exception, as they require each driver to use their own insurance to pay for medical expenses after an accident. But regardless of the state, fault always dictates whose liability insurance pays for property damage.… read full answer

Your liability insurance never covers your own expenses, so you will need collision insurance, personal injury protection (PIP), or MedPay in order to avoid paying out of pocket for an at-fault accident. Some states require drivers to have PIP or MedPay, while collision insurance is usually required if you are leasing or financing your car.

After an at-fault accident, car insurance rates go up by an average of 48%. The exact amount that your premium will go up depends on a few factors, including your state and how much damage you caused. But any increase is only temporary, usually lasting about 3-5 years. And if you have accident forgiveness with your insurance company, your rates might not go up at all.

Ultimately, no one wants to be at-fault in a car accident, but it’s important to understand how at-fault accidents work just in case. With that in mind, here’s a quick summary of what you really need to know.

Here’s What Happens If You Are At-Fault in a Car Accident

• Your liability insurance should pay for the other driver’s expenses.
• You will need to use other types of car insurance to cover your own repair and medical bills.
• Your car insurance rates will go up by an average of 48% for 3-5 years.

You will need personal injury protection (PIP) insurance if you live in one of the 12 states that require it. Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah all require PIP insurance. You may also need PIP if your health insurance has low coverage limits or if you drive with passengers who could hold you responsible for their medical expenses in the event of an accident.… read full answer

In the 20 states (plus Washington, D.C.) where it is required or offered as optional protection, PIP covers medical expenses for the policyholder and his or her passengers after an accident, no matter who was at fault. However, PIP is not available at all in the 30 other states.

Always check with your insurance company or an agent for specifics on what coverage is required or available in your state before you determine what to include in your policy.

What Does PIP Cover?

• Ambulance fees
• Health insurance deductibles
• Medical treatments
• Surgery
• Rehabilitation
• Prescriptions
• Lost wages
• Home care such as cleaning or child care
• Funeral costs

If you are in a car accident, PIP often works in conjunction with your health insurance coverage. Most health insurance deductibles must be paid before benefits start to be paid out, but your PIP may have a cheaper deductible, or no deductible at all.

How Does PIP Work With MedPay?

PIP insurance may overlap with another kind of car insurance known as Medical Payments, or MedPay. Like PIP, MedPay covers the costs of medical care resulting from of an accident, no matter who was at fault. Also like PIP, MedPay covers injuries to any passengers in your car. However, it does not pay for lost wages, rehabilitation or home-care services, which PIP would cover.

The way PIP and MedPay may work together depends on your state’s laws. If you live in one of the 12 states that require PIP, MedPay could be redundant. State limits on PIP vary widely, from $3,000 in Utah to New York’s $50,000 requirement. If your state has a low upper limit on PIP, MedPay coverage could act as a beneficial supplement. In a couple states – namely, Maine and New Hampshire – MedPay is used instead of PIP.

The thirteen states that require PIP insurance, also known as personal injury protection, are Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah. Of these states, 11 are “no-fault” states. PIP coverage is also available, but optional, in seven additional states, plus the District of Columbia.… read full answer

PIP States

*Reflects this state’s minimum coverage required for medical benefits, not PIP specifically. In New Hampshire, this minimum only applies to drivers who decide to purchase coverage.

PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. These expenses include ambulance fees, medical and surgical treatments, and prescriptions. PIP can also reimburse you for lost wages, home care expenses, and even funeral expenses.