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What are no-fault insurance states and what does that mean?

Understanding the auto insurance laws in your state can help you get the right coverage for you. So, whether you live in a no-fault car insurance state or not, it's important to get the right auto insurance protection. That's why we've gathered some frequently asked question about no-fault car insurance.

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Frequently asked questions about no-fault car insurance

What does a no-fault insurance state mean?

No-fault insurance refers to how injuries are covered by car insurance. In a no-fault insurance state, if you're injured in an auto accident, you would file a claim with your own insurance company to pay for related medical costs. This is regardless of fault. No-fault insurance is often called Personal Injury Protection, or PIP for short.

In no-fault insurance states, drivers are normally required to have a minimum amount of PIP Coverage. This is to help make sure that people will have coverage to help if they're injured in an auto accident. This coverage is often in addition to auto coverages like Bodily Injury and Property Damage.

What states are no-fault states?

Currently, there are 12 pure or “true” no-fault insurance states1

  1. Florida
  2. Hawaii
  3. Kansas
  4. Kentucky
  5. Massachusetts
  6. Michigan
  7. Minnesota
  8. New Jersey
  9. New York
  10. North Dakota
  11. Pennsylvania
  12. Utah

Puerto Rico has its own mandatory no-fault insurance requirement.2

*As of February 2023

What does it mean when a state has an "add-on" or "choice" no-fault insurance requirement?

Add-on no-fault insurance is an option drivers in some states can add to their auto policy for extra Personal Injury Protection. Simply put, it requires a driver's own insurance company to pay for their medical and other expenses, regardless of fault.

In most states this coverage is optional, while in others it is mandatory. Here are the states that offer add-on coverage3

  • Arkansas
  • Delaware
  • Washington, D.C.
  • Maryland
  • New Hampshire
  • Oregon
  • South Dakota
  • Texas
  • Virginia
  • Washington
  • Wisconsin

Choice no-fault insurance is offered in some states and gives drivers a choice of selecting a typical no-fault auto policy or a traditional auto insurance policy. States that offer this option are1

  • Kentucky
  • New Jersey
  • Pennsylvania

Who pays for damages in a no-fault insurance state?

In no-fault insurance states, the law requires each driver to file a claim with their own insurance company. Therefore, all medical expenses are paid by each of the driver's individual insurance companies. This is regardless of fault.

How do no-fault insurance claims work?

In no-fault insurance states, the law requires each driver to file a claim with their own insurance company, no matter who's at-fault.

In most no-fault claims, you may have to

  • Give your insurer a recorded statement of the accident
  • Complete a medical exam with a physician selected by the insurance company

Failure to follow the requirements of your insurance company could result in a claim denial.4

Is auto insurance in no-fault insurance states more expensive than traditional liability insurance states?

In general, states with no-fault auto insurance have higher insurance costs compared to others. Some reasons may include

  • Claims are paid regardless of fault
  • Encouraging more incidents of fraud
  • Possible exaggerated injuries
  • Repeat offenders

This in turn can lead to insurance companies charging more.

Learn more about what type of auto insurance your state requires.

You could save up to 12% when you buy customized car insurance online

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As a driver, you have a lot of car insurance coverages to choose from. Some are required by your state, and others are optional—but recommended for extra protection.

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Please note: Information presented on this page is intended to be general information about insurance and is not specific to Liberty Mutual policies. Policies and coverages vary by state and insurer. Contact your insurance company to understand specifics regarding your policy and coverages.