Who pays for car damage in a no-fault state? This question is about No-Fault Insurance Guide

Who pays for car damage in a no-fault state?

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This question is about No-Fault Insurance Guide

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@WalletHub • 10/19/21 This answer was first published on 10/19/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Car damage in a no-fault state is paid for by the at-fault driver’s insurance. The driver who caused the accident must use their property damage liability insurance to pay for the victim’s car damage, while the at-fault driver’s collision insurance covers any damage to their own vehicle.

In no-fault states, drivers are required to carry personal injury protection (PIP) insurance, sometimes referred to as “no-fault insurance.” PIP pays for the policyholder’s accident-related medical expenses regardless of who was to blame for the accident, but it does not cover property damage of any kind.

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

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Whose insurance pays in a no-fault accident?

In a no-fault accident, each driver’s insurance pays for their own medical bills, regardless of who caused the wreck. No-fault states require drivers to have personal injury protection (PIP) insurance in order to pay for their own injury-related expenses, including hospital bills and lost income.

A “no-fault” accident is a wreck that takes place in a state with no-fault laws. However, no-fault laws only apply to injuries, so at least one driver will still be deemed responsible...

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Will no-fault insurance pay for my car repairs?

No, no-fault insurance will not pay for your car repairs after an accident. Even in no-fault states, the at-fault driver is responsible for paying for vehicle repairs after an accident, as no-fault rules do not apply to property damage. No-fault states simply require drivers to use their own personal injury protection (PIP) insurance to pay for their medical expenses after a wreck.

As a result, if the other driver is at-fault in an accident that damages your...

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What happens when there is an accident in a state with no-fault insurance laws?

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