No-Fault vs. At-Fault States
Quick answer: Twelve states and Puerto Rico have no-fault auto insurance: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. In these states your own personal injury protection (PIP) pays your medical bills and lost wages after a crash, no matter who caused it.
Kentucky, New Jersey, and Pennsylvania are "choice" states, where drivers can give up the limits on lawsuits.
The no-fault states
A no-fault state also limits when you can sue the other driver for pain and suffering. You have to meet a "threshold": either a verbal one, where the injury has to meet a description in the law, or a monetary one, where your medical costs have to pass a dollar amount.
| State | Threshold to sue | Choice option? |
|---|---|---|
| Florida | Verbal | No |
| Hawaii | Monetary | No |
| Kansas | Monetary | No |
| Kentucky | Monetary | Yes |
| Massachusetts | Monetary | No |
| Michigan | Verbal | No |
| Minnesota | Monetary | No |
| New Jersey | Verbal | Yes |
| New York | Verbal | No |
| North Dakota | Monetary | No |
| Pennsylvania | Verbal | Yes |
| Utah | Monetary | No |
| Puerto Rico | Not specified | No |
The three systems, in plain terms
- No-fault. Everyone carries PIP. After a crash, you claim your medical costs and lost wages from your own insurer first. Suing the other driver for pain and suffering is allowed only past the state's threshold.
- Choice no-fault. Kentucky, New Jersey, and Pennsylvania let drivers reject the lawsuit threshold, usually for a different premium.
- At-fault (tort). Every other state. The driver who caused the crash, and their liability insurer, pays for the other people's injuries. There are no restrictions on lawsuits. Some of these states add optional first-party coverage, called "add-on" states, where benefits may be lower than in true no-fault states.
States that dropped no-fault
Several states tried no-fault and walked it back: Nevada repealed its law in 1980, Pennsylvania replaced its first law in 1984, Georgia repealed in 1991, Connecticut in 1993, and Colorado's law expired in 2003.
Common questions
Does no-fault mean nobody is blamed for the crash?
No. Fault still matters for property damage, for your premiums, and for any lawsuit above the threshold. "No-fault" describes who pays your own injury costs first.
Does no-fault change my deadline to sue?
No. The statute of limitations still applies. In Florida, for example, a negligence lawsuit generally has to be filed within two years. See Florida's filing deadlines.
Is Texas or California a no-fault state?
No. Both are at-fault states. See the filing deadlines for Texas and California.
Sources
This page summarizes state auto insurance systems for general information. It is not legal or insurance advice. Your policy and your state's law decide what you can claim.