Florida, Minnesota and Hawaii are all considered “no fault” states for car insurance.
The Key Takeaways
- There are 12 states that have no-fault status at the moment: Florida, Minnesota and Hawaii, New Jersey. Kentucky, North Dakota. Massachusetts. Pennsylvania. Michigan.
- No-fault insurance states for car drivers require that they file claims for bodily injuries and medical expenses with their insurance company.
- Your car insurance company will pay the maximum amount specified in your PIP (no-fault) coverage.
When it comes to auto insurance, individual states have the ability to create their own laws and requirements. Some states are considered no-fault. This means that drivers who are hurt in an auto accident must file a claim with their insurance regardless of the cause. Others are at-fault states that require insurance from the at-fault driver to cover injuries and related expenses.
There are 12 states that have no-fault status at the moment: Florida, Minnesota and Hawaii, New Jersey. Puerto Rico is also a signatory to the no fault law.
Drivers in no-fault states are required to purchase personal injury protection (PIP) as part of their car insurance policy in order to cover injuries to them or their passengers.
What is no-fault coverage?
No-fault car insurance states require drivers involved in an accident to file a claim for bodily injury and medical expenses with their own insurance company, regardless of who was at fault. In states with no-fault laws, policyholders are required to purchase a minimum amount of personal injury protection (PIP), though the exact amount depends on the state. This is in contrast to an at fault or tort state where injuries to you and your passengers are covered by the at-fault driver’s liability coverage.
If you or your passengers are in an accident, PIP insurance will cover your medical bills up to the maximum limit.
No-fault laws allow injured drivers to sue at-fault motorists only if their injuries are severe or costly. Verbal thresholds indicate that injuries must be described as serious by the state, including permanent injury or loss. Monetary thresholds refer to the amount of medical bills.
State with no-fault insurance
Puerto Rico and 12 other states are no-fault and drivers must have PIP. However, state-specific conditions and thresholds vary.
Florida
Florida drivers must have $10,000 PIP insurance. They are also subject to a verbal threshold.
Minnesota
Minnesota drivers must have $20,000 in PIP insurance per incident and $20,000 per loss of income per accident. They are also required to adhere to a monetary limit.
Hawaii
Hawaii drivers must have $10,000 PIP insurance. They are also required to meet a certain monetary threshold.
New Jersey
New Jersey drivers must have $10,000 worth of PIP insurance per incident. However, you can reject PIP coverage in writing.
New Jersey is also one the three “optional-no-fault” states. This means that drivers have the option of choosing whether to be subject to a no fault system. New Jersey drivers have the right to sue any auto-related injury.
Kansas
Kansas drivers must have $4,500 per accident PIP insurance and they are subject to a monetary limit.
New York
New York drivers must have $50,000 worth of PIP insurance per driver and they are subject to a verbal threshold.
Kentucky
Kentucky drivers must have $10,000 worth of PIP insurance per incident. However, PIP coverage may be denied in writing.
Kentucky has its own monetary threshold. However, Kentucky is also an optional no-fault state. Drivers have the option to choose whether or not they will be subject to this no fault system. Kentucky drivers also have the right to sue for any auto accident injury.
North Dakota
North Dakota drivers are required to have a minimum of $30,000 in PIP insurance per driver and must adhere to a monetary limit.
Massachusetts
Massachusetts drivers must have $8,000 worth of PIP insurance. They are also required to meet a certain monetary threshold.
Pennsylvania
Pennsylvania drivers must have $5,000 worth of PIP insurance. They are also subject to a verbal threshold. However, they can reject the no fault system as PA is one of only three states that has an optional no fault law. Pennsylvania drivers still have the right to sue any car-related injury.
Michigan
Michigan requires PIP coverage. However, the requirements can vary depending on how much health insurance coverage drivers have. Drivers are also required to meet a verbal threshold.
Michigan drivers must also have a minimum of $1,000,000 in property protection insurance (PPI). This covers any property damage, regardless of the cause.
Utah
Utah drivers must have $3,000 worth of PIP insurance and be subject to a monetary limit.
No fault-states vs. states that require PIP
PIP insurance does not always have to be required in every state. No-fault states require that drivers file injury claims with their own insurance and have strict rules regarding car accident lawsuits. These states, while requiring drivers to have PIP coverage as a part of their car insurance policy, are not no fault states.
- Arkansas
- Delaware
- Maryland
- Oregon
What is not covered by no fault insurance?
No-fault insurance also covers personal injury. It covers passengers and drivers’ medical costs after an accident. However, it does not cover property. No-fault insurance does not cover vehicle damage, theft, or damage to other people’s property. Their liability coverage would cover the damage to your vehicle if you are in an accident that was caused by another driver.
You can also add comprehensive and collision coverage to your policy if you’d like to protect your car from damage in the event that you caused an accident, or if your car is damaged by a non-driving peril like hail, flooding or theft. As with other types of car insurance, PIP (or no-fault) will only provide coverage up to the limits of your coverage.