No-Fault Auto Insurance (2024)
No-fault auto insurance covers injuries you and your passengers sustain in a collision, regardless of fault. On average, no-fault insurance costs start at $25 monthly. Below, you can learn more about what no-fault coverage is, how it works, and where to get cheap no-fault insurance.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Sep 22, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 22, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- No-fault insurance is also called personal injury protection coverage and helps pay for medical bills after a collision
- This coverage pays for health care expenses for you and your passengers, no matter who was at fault
- No-fault insurance is not available in every state
Many state minimum auto insurance requirements include no-fault auto insurance to pay for their medical expenses after getting injured in an accident. In addition, most of these states require drivers to carry additional insurance to cover health care costs.
No-fault coverage — frequently called personal injury protection (PIP) auto insurance — covers various expenses related to injuries you or your passengers sustain in a collision, regardless of whether it was an at-fault accident or not.
Read on to learn more about no-fault car insurance to determine if you really need it. Then, enter your ZIP code into our free quote comparison above to find the right no-fault auto insurance policy for you.
No-Fault Auto Insurance Defined
What is no-fault coverage? No-fault insurance is often called personal injury protection (PIP) coverage and helps pay medical expenses after an accident. No-fault insurance applies to anyone in your car and works even if you caused the accident.
So, how does no-fault insurance work? No-fault insurance covers medical bills whenever you or your passengers are injured in a collision. Some insurance types only cover damage when a specific person is responsible. For example, your liability auto insurance only covers damage you cause to other drivers. It doesn’t pay for your car if someone hits you.
No-fault insurance pays for medical expenses no matter what happens. If you or one of your passengers is injured in any collision, your no-fault insurance has you covered. No-fault coverage extends to injuries sustained as a passenger in other cars and if you’re a pedestrian hit by a vehicle.
In most cases, no-fault insurance is optional — only a few states require it. However, no-fault insurance is not available in every state. You can look into medical payments coverage if you live in a state that doesn’t sell no-fault insurance.
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What No-Fault Auto Insurance Covers
While they cover similar things, no-fault insurance covers a lot more than medical payments coverage. Coverage varies by state and company, but no-fault insurance usually covers the following:
- Medical bills
- Lost income due to injuries sustained in an accident
- Funeral expenses if someone dies in the accident
- Life services while you recover, like house cleaning or dog walking
- Physical therapy
No-fault insurance doesn’t help pay for repairs to your vehicle, but it helps for just about everything related to medical expenses after an accident.
No-Fault Auto Insurance Cost
How much does no-fault insurance cost? Like other types of car insurance, the cost of no-fault coverage depends on several factors. One of the most important is how much no-fault insurance your state requires. The more insurance you need, the higher your rates will be.
Michigan is an excellent example of state requirements affecting your insurance costs. Michigan requires drivers to carry a $250,000 limit for no-fault insurance, leading to the country’s highest insurance rates. Read more about Michigan auto insurance.
Although no-fault insurance adds a lot of value to your policy, the average policy adds about $75 monthly to your rates. While residents in states requiring no-fault insurance must add it to their policy, financial protection against medical bills benefits everyone.
States Offering No-Fault Auto Insurance Coverage
Most states require a minimum amount of insurance, but only a few require no-fault insurance. Several other states allow drivers to buy no-fault insurance but don’t require it.
According to the Insurance Information Institute, the states requiring no-fault insurance are:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
Kentucky, Pennsylvania, and New Jersey allow drivers to choose between no-fault insurance and full tort liability, which changes how much you can sue another driver. Full tort liability insurance tends to be more expensive than no-fault coverage.
States that allow for the sale of no-fault insurance without requiring it include:
- Arkansas
- Delaware
- Maryland
- New Hampshire
- Oregon
- South Dakota
- Texas
- Virginia
- Washington
- Wisconsin
As you can see, the number of states that offer no-fault insurance is limited. If you’re interested in no-fault insurance, make sure it’s available in your state.
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How to File a No-Fault Auto Insurance Claim
Filing a claim with no-fault insurance is a much simpler process than dealing with another driver’s company.
So, what is a no-fault claim? When you’re in an accident or collision, you can file a no-fault claim the same way you would with any other type of coverage. Most large insurance companies allow you to file a claim on a website or mobile app, but you can always call and speak with a representative.
Since this is a no-fault insurance claim, you don’t have to worry about proving anything about your claim. No-fault insurance only pays for specific injuries, but filing your claim is relatively simple.
Find Affordable No-Fault Auto Insurance Today
No-fault insurance is valuable coverage that can protect you and your passengers from expensive health care bills after an accident. While it can increase your insurance rates significantly, protecting yourself from costly medical bills is worth it.
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However, not all states sell no-fault insurance. An insurance representative can help you determine what’s available in your state, and comparing rates will help you find the most affordable coverage.
Frequently Asked Questions
Does no-fault insurance cover car damage?
No-fault insurance does not cover your car in any way. Instead, it covers medical bills, lost wages, physical therapy, and funeral expenses after a collision.
What are the no-fault states in 2023?
The states requiring no-fault insurance in 2023 include Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
What is a no-fault claim?
You can make a no-fault claim if you or one of your passengers is injured in a collision. It doesn’t matter who caused the accident — you’re eligible to make a no-fault claim no matter what.
Is no-fault insurance worth it?
If you can fit it into your car insurance budget, no-fault coverage offers valuable protection against expensive health care bills. It also saves time by allowing you to skip dealing with someone else’s car insurance company.
Is Florida a no-fault state?
Florida requires drivers to carry at least $10,000 worth of personal injury protection insurance. Due to higher insurance requirements, extreme weather risks, heavy traffic, and dangerous highways, Floridians pay higher rates for coverage.
What is a no-fault state?
No-fault states limit how much you can sue another driver when they injure you in an accident. Instead, drivers must cover their medical expenses with personal injury protection insurance. Most no-fault states require drivers to carry a minimum amount of personal injury protection insurance and liability coverage.
Is Michigan a no-fault state?
Like Florida, Michigan is a no-fault state requiring drivers to carry personal injury protection insurance. However, Michigan drivers must have at least $250,000 of personal injury protection insurance coverage.
How does no-fault auto insurance affect premiums?
No-fault auto insurance can impact insurance premiums differently depending on the state and individual circumstances. In general, no-fault coverage may result in higher premiums due to the increased coverage and benefits it provides.
However, there are other factors that affect auto insurance rates, such as driving record, vehicle type, and location.
Can I choose between no-fault insurance and a traditional insurance system?
In states with a no-fault auto insurance system, drivers typically must carry no-fault coverage. However, in some states, drivers may have the option to choose between no-fault coverage and a traditional tort-based system, which allows for lawsuits to determine fault and seek compensation from the at-fault party.
What are the benefits of no-fault auto insurance?
No-fault auto insurance offers several benefits, including faster claim resolution, reduced litigation, and quicker access to medical care. By eliminating the need to determine fault, it streamlines the claims process, allowing injured parties to receive compensation promptly and focus on their recovery.
Are there any limitations to no-fault auto insurance?
Yes, there are limitations to no-fault auto insurance. While it covers medical expenses and certain economic losses, it may not cover property damage resulting from the accident. Additionally, some states have monetary thresholds or verbal threshold requirements that must be met before you can pursue a lawsuit against the at-fault party for non-economic damages, such as pain and suffering.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.