States With No-Fault Auto Insurance Laws

Name: States With No-Fault Auto Insurance Laws
Item: States With No-Fault Auto Insurance Laws
Author: Mark Fitzpatrick

There are 12 states that have no-fault insurance and these have Personal Injury Protection as part of their minimum car insurance requirements. You can still be at fault for a collision in a no-fault state. However, drivers file claims to their respective insurance companies to cover personal injury costs, regardless of who caused the accident.

By Mark Fitzpatrick

Reviewed by Amy Wilder

Updated: May 20, 2024

Advertising & Editorial Disclosure

If you're wondering what a no-fault state is, the answer lies in which insurance company pays out claims for personal injuries — the at-fault driver or both drivers. In no-fault states, auto insurance companies pay out claims filed by their respective policyholders to cover personal injuries after an accident. Who was at fault is irrelevant.

Florida, Kansas, Hawaii, Massachusetts, Minnesota, Michigan, New Jersey, New York, North Dakota, Pennsylvania, Kentucky and Utah are the states with no-fault car insurance laws. All no-fault states include Personal Injury Protection as part of their minimum car insurance requirements. The only exception is Pennsylvania, where you only need medical payment coverage.

No-fault states also place restrictions on your right to sue. It’s worth noting that if you were at fault in an accident and the other driver’s property was damaged, your car insurance policy would still cover the cost of repairs.

States With No-Fault Insurance
No-Fault State Average Rates
Frequently Asked Questions

Differentiating between at-fault and no-fault states is a starting point for understanding how car insurance works. Remember, there are fewer no-fault states in the country, and they can fall under three types.

Key Takeaways

In no-fault states, drivers file claims to their car insurance companies to cover costs from personal injuries.

There are 12 no-fault states in the U.S., but three are choice no-fault states.

You pay more for car insurance in no-fault states because you need more coverage, such as PIP.

What States Have No-Fault Insurance Laws?

Most states require liability coverage as part of your car insurance policy. The exception is Florida, where you only need property damage insurance. Usually, in a no-fault state you’ll also need to have Personal Injury Protection coverage.

States with no-fault insurance laws require drivers to file claims with their own providers if they’re involved in an accident. Your right to pursue damages for personal injuries is limited unless these are severe.

The table below shows the minimum auto insurance requirements of the 12 no-fault states. We included Puerto Rico, a U.S. territory with no-fault insurance laws.

List of No-Fault Insurance States

State	Minimum Requirement
Florida	$10,000 property damage liability per accident $10,000 personal injury protection per person
Hawaii	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $10,000 property damage liability per accident $10,000 personal injury protection per person
Kansas	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident Personal Injury Protection per Person: $4,500 per person for medical expenses. $900 monthly for up to a year of disability or loss of income coverage. $25 a day for in-home services. $4,500 for rehabilitation-related expenses. $2,000 for funeral, burial or cremation expenses Survivors Benefits: $900 per month for a year for disability or loss of income $25 per day for in-home services
Kentucky	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $10,000 personal injury protection per person
Massachusetts	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $5,000 property damage liability per accident $20,000 uninsured/underinsured motorist coverage per person $40,000 uninsured/underinsured motorist coverage per accident $8,000 personal injury protection per accident
Michigan	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident Unlimited personal injury protection per person Unlimited personal injury protection per accident $1 million property protection
Minnesota	$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $40,000 personal injury protection per person
New Jersey	$5,000 property damage liability per accident $1,000 personal injury protection per person
New York	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $50,000 personal injury protection per person Other: $50,000 liability for death per person. $100,000 liability for death per accident.
North Dakota	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $30,000 personal injury protection per person
Pennsylvania	$15,000 bodily injury liability per person $30,000 bodily injury liability per accident $5,000 property damage liability per accident $5,000 medical payments coverage
Utah	$25,000 bodily injury liability per person $65,000 bodily injury liability per accident $15,000 property damage liability per accident $3,000 personal injury protection per person

What Is a True No-Fault State?

A true no-fault insurance state requires insurance companies to cover their policyholder's personal injury claims. However, the at-fault driver still shoulders costs for damaged property.

Your right to sue is restricted unless it reaches the tort liability threshold in a no-fault state. This comes in two forms — verbal (for death or disfigurement) or monetary (amount of medical bills).

MONEYGEEK DICTIONARY

The conditions that allow you to sue another driver for personal injury costs are called Tort Liability Threshold. Once you reach this measure of minimum injury severity, you can pursue damages against the at-fault driver.

There are two types of Tort Thresholds — verbal and monetary. The former depends on how many injuries you sustained. Typically, you reach the limit if you lose a body part or function because of an accident. In contrast, a monetary threshold depends on how much your medical bills cost.

What Is a Choice No-Fault State?

You can choose between a no-fault policy or a standard tort liability policy in Choice No-Fault states.

A no-fault option has fewer restrictions regarding your rights to sue, though tort liability thresholds vary. New Jersey and Pennsylvania only have a verbal one, while Kentucky's is only monetary.

You still file claims for personal injury to your own carrier while the at-fault driver pays for property damage in all three states.

What Is an Add-On No-Fault State?

Add-On No-Fault states follow a tort insurance system. At their core, they are at-fault states, because the driver who caused the accident is liable for costs incurred by the other party for injuries and property damage.

However, you can choose to add PIP coverage to your policy. Although it's not required, PIP provides additional protection if the other driver's insurance isn't enough to cover your medical expenses.

ADD-ON NO-FAULT STATES

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

What Is a Tort State?

Tort states follow a traditional insurance system, where the at-fault driver's policy covers damages from repairs and medical expenses. There are also no restrictions on filing lawsuits.

The states excluded from the list are tort states.

How Much Is Insurance in No-Fault States?

Car insurance companies consider several factors when calculating premiums. These may include personal information such as your age, driving record, and car's make and model. Another factor is location — driving in a no-fault state is one reason for more expensive car insurance.

Drivers in no-fault states need to purchase more coverage because their state's minimum insurance requirements include Personal Injury Protection. The no-fault state with the most expensive premium is Michigan, with an average of $4,333 per year for a full coverage policy.

Average Cost Of Insurance In No-Fault States

State	Annual Average Cost
Florida	$2,208
Hawaii	$1,066
Kansas	$931
Kentucky	$1,405
Massachusetts	$1,112
Michigan	$4,333
Minnesota	$1,199
New Jersey	$1,674
New York	$3,433
North Dakota	$743
Pennsylvania	$1,818
Utah	$1,154

Frequently Asked Questions

We gathered questions drivers commonly ask about states with no-fault insurance laws and their corresponding answers to provide more information.

What states have no-fault insurance laws?

There are 12 no-fault states. These are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.

What are PIP states?

No-fault states are also referred to as PIP states because drivers in these states are usually required to purchase Personal Injury Protection coverage in addition to liability insurance.

How many no-fault states are there?

There are 12 no-fault insurance states in the U.S. Three of them — Kentucky, New Jersey and Pennsylvania — are choice no-fault states. Choice no-fault means you can choose between a no-fault option or traditional tort insurance.

What is the definition of a no-fault state?

A no-fault state is where drivers file claims to their own auto insurance companies for personal injury coverage after an accident, regardless of who was at fault.

Is no-fault insurance mandatory?

No-fault insurance is also known as PIP or Personal Injury Protection coverage. It’s required in all 12 no-fault states and optional in the ten add-on states, plus the District of Columbia.

What is a tort state?

Tort states follow a traditional insurance system. Here, drivers who caused the accident are liable to cover the other party’s costs from medical treatments and property damage.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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sources

Insurance Information Institute. "What Determines the Price of an Auto Insurance Policy?." Accessed July 27, 2022.