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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 right 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
| Category | Meaning |
| Basic medical bills | Each driver uses their own insurance to cover basic medical expenses. |
| PIP insurance | Replaces compensation that would have been collected from the at-fault driver. |
| Claim payment time | Insurance claims are paid out quickly since there is no need to establish fault first. |
| Right to sue | Drivers are only allowed to sue the at-fault party if injuries or costs are severe. |
| Premiums | More expensive than tort states, on average – partly due to higher rates of fraud. |
| Types of no-fault states | Nine states require all drivers to operate within the no-fault system. Three states allow drivers to opt-out of the no-fault system. Several other states offer optional PIP insurance, without the legal restrictions, giving drivers extra coverage in an accident. |
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.
People also ask
What should you do after a car accident that's not your fault?
The first thing you should do after a car accident that is not your fault is to make sure everyone inside your car is safe and uninjured. Next, call the police, take pictures of the scene, and exchange insurance information with the at-fault driver so you can file a claim with their insurer. You should also report the accident to your insurance company in case you need to file a collision, personal injury protection, or MedPay claim...
read full answer by WalletHub, Financial CompanyHow does car insurance work when you are not at fault?
When you're not at fault in an accident, the at-fault driver's insurance should cover your car damage and medical bills. You can file a collision claim with your own insurer if determining fault will take too long, and they will then seek reimbursement from the at-fault driver’s insurance company. In addition, no-fault states require you to use your own insurance to pay medical bills.
How Car Insurance Works When You’re Not At Fault
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Why is no-fault insurance bad?
No-fault insurance is bad because it leads to higher car insurance premiums. It's also harder for drivers to sue for damages related to pain and suffering, and no-fault states do not penalize negligent drivers as much as so-called tort states.
Disadvantages of No-Fault Insurance
- Insurance rates are higher in no-fault states than tort states, on average, because more coverage is required.
- Your ability to sue an at-fault driver is limited.
- Negligent...
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