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In most states, car insurance follows an at-fault or tort system, where the driver who caused an accident is responsible for paying for damages. But if you live in one of the 13 states below, you’re subject to what’s called a no-fault system.
In a no-fault system, it’s not that no one is responsible for an accident. In fact, in most states, the driver who caused the accident is still on the hook for property damage. Instead, states with these laws handle injury claims differently and place restrictions on your right to sue the at-fault driver.
Beyond these high level similarities, every no-fault state is unique in how their laws work. Some are “pure” no-fault states while others have a confusing mix of no-fault and tort systems. Here’s an overview of how no-fault car insurance laws work in every state that has them and what drivers need to know when shopping for car insurance in each one.
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How no-fault car insurance works
Under a no-fault system, drivers generally file injury claims with their own insurance after an accident, regardless of who caused it. This coverage typically comes through personal injury protection (PIP), which helps pay for medical expenses and sometimes lost wages or other injury-related economic losses.
Property damage, however, is usually still handled through the at-fault driver’s insurance.
Another key difference is lawsuits. In many no-fault states, you can only sue the at-fault driver if your injuries meet certain legal thresholds, such as exceeding a dollar amount or involving serious injury.
Unless noted otherwise, no-fault laws apply only to bodily injury claims. Property damage typically still follows fault rules.
States with no-fault car insurance systems
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Delaware
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $15,000 per person / $30,000 per accident
- When can you sue the at-fault driver? No restrictions on your right to sue
Delaware shows why no-fault laws can be confusing. The state requires drivers to carry PIP coverage, but it does not limit your ability to sue an at-fault driver.
After an accident, your own PIP coverage pays medical expenses and certain injury-related costs regardless of who caused the crash. However, you can still file a lawsuit against the at-fault driver for additional damages, including pain and suffering, without meeting an injury or dollar threshold.
The main restriction is that you cannot recover expenses already paid through your PIP coverage. For example, if your medical bills total $20,000 and your PIP policy covers $15,000, you could only pursue the at-fault driver for the remaining $5,000.
Florida
- Liability insurance required: Property damage only
- Minimum Personal Injury Protection (PIP): $10,000
- When can you sue the at-fault driver? When medical expenses or lost income exceed PIP limits, or injuries involve permanent injury, significant disfigurement, loss of a major bodily function or death
Florida is the only state where you’re not required to carry bodily injury liability insurance. Because of this, your PIP coverage will definitely come in handy as there’s a good chance the other driver doesn’t have any liability insurance to cover your injuries anyway.
After an accident, your PIP policy covers medical expenses and certain lost wages, regardless of who caused the crash. If your costs exceed your PIP limits — or your injuries meet Florida’s serious injury threshold — you may file a claim against the at-fault driver.
Because some Florida drivers carry little or no bodily injury liability coverage, many experts recommend purchasing higher PIP limits and adding uninsured or underinsured motorist coverage to help protect against out-of-pocket expenses.
Florida still follows an at-fault system for vehicle damage. Drivers typically file property damage claims through the at-fault driver’s insurance to cover repair costs.
Hawaii
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $10,000
- When can you sue the at-fault driver? When medical expenses or lost income exceed $5,000, or injuries involve permanent loss of a body part or function, serious disfigurement or death
Hawaii’s no-fault system is pretty typical of most no-fault states. You still need to carry liability insurance. But a driver’s right to sue the at-fault party is limited to accidents where the injuries or damages exceed a certain threshold.
After an accident, PIP typically covers medical expenses and certain lost income regardless of fault. Property damage, however, still follows fault rules, meaning drivers usually file claims through the at-fault driver’s insurance or rely on their own collision coverage.
Kansas
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): Structured benefits (see breakdown below)
- When can you sue the at-fault driver? When medical expenses exceed $2,000, or injuries involve permanent loss of a body part, disfigurement, certain fractures, permanent injury or death
Kansas follows a traditional no-fault structure but stands out because of how its PIP benefits are divided into specific coverage categories rather than a single coverage limit.
Drivers must carry liability insurance and PIP coverage, and lawsuits against the at-fault driver are limited unless injuries exceed Kansas’ legal thresholds.
Kansas requires minimum PIP benefits that include:
- $4,500/person for medical expenses
- $900/month for disability/loss of income (for one year)
- $25/day for substitution benefits
- $2,000 for funeral expenses
- $4,500 for rehabilitation or re-employment training
- $900/month for disability/loss of income (for one year) for survivors
- $25/day for substitution benefits for survivors
Because benefits are divided into separate categories, drivers can exhaust certain coverage types even if they have not reached their total available PIP benefits.
Kansas drivers should review how their PIP benefits are allocated, since individual coverage categories can run out before total coverage is exhausted.
Kentucky
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $10,000 (automatic unless rejected)
- When can you sue the at-fault driver? When medical expenses exceed $1,000 or injuries involve broken bones, permanent injury, disfigurement or death — unless you opt out of no-fault coverage
Kentucky is a “choice no-fault” state, meaning PIP coverage is automatically included in car insurance policies unless drivers formally opt out.
Drivers who keep PIP coverage must meet the state’s injury or expense thresholds before suing an at-fault driver. However, drivers who file a no-fault rejection form with the state can opt out of PIP and regain full rights to sue without meeting those thresholds.
Even drivers who opt out must still carry “guest PIP,” which provides injury protection for passengers and pedestrians involved in an accident. Opting out of Kentucky’s no-fault system can expand your legal rights but may increase financial risk after an accident.
Massachusetts
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $8,000
- When can you sue the at-fault driver? When medical expenses exceed $2,000 or injuries involve permanent disfigurement, bone fractures, loss of a body part, loss of vision or hearing or death
Massachusetts follows a relatively straightforward no-fault system. Drivers must carry liability insurance and PIP coverage, which pays medical expenses and certain injury-related costs regardless of who caused the accident.
Drivers may file a lawsuit against the at-fault party when injuries meet Massachusetts’ legal thresholds or medical expenses exceed $2,000. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.
Because Massachusetts has a relatively low threshold for lawsuits, drivers may want to consider carrying higher bodily injury liability limits to help protect against potential claims.
Michigan
- Liability insurance required: Bodily injury and property damage (with special rules)
- Minimum Personal Injury Protection (PIP): Historically unlimited, though drivers may now choose lower limits if eligible
- When can you sue the at-fault driver? For excess economic losses after PIP is exhausted, or for pain and suffering if injuries involve serious impairment, permanent disfigurement or death
Michigan has one of the most distinctive and complex no-fault systems in the country.
After an accident, drivers typically file claims through their own insurance for both medical expenses and economic losses, regardless of who caused the crash. Property damage claims between Michigan drivers are also largely handled through their own policies rather than the at-fault driver’s insurance.
Because Michigan historically required unlimited PIP coverage, most drivers are unlikely to exceed their medical coverage limits. Lawsuits are generally limited to cases involving serious injury, permanent disfigurement or death, although drivers may also pursue claims for economic losses that exceed their selected PIP coverage.
Michigan also handles vehicle damage differently than most states. Since PIP does not cover vehicle repairs and property damage claims against another Michigan driver are limited, collision coverage is especially important. The state offers three collision coverage options:
- Limited collision: Covers damage only if you are 50% or less at fault
- Standard collision: Covers repairs regardless of fault
- Broad form collision: Covers repairs regardless of fault and waives your deductible if you are less than 50% at fault
Michigan also allows drivers to file a “mini-tort” claim to recover part of their collision deductible from the at-fault driver.
Recent reforms allow drivers to choose lower PIP coverage limits, which can reduce premiums. However, drivers selecting coverage below $250,000 must meet certain eligibility requirements, such as qualifying health coverage through programs like Medicare or Medicaid.
Michigan drivers rely heavily on their own insurance after accidents, making collision and PIP coverage choices especially important.
Minnesota
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $40,000 ($20,000 medical / $20,000 non-medical)
- When can you sue the at-fault driver? When medical expenses exceed $4,000 or injuries involve permanent disfigurement, disability lasting 60 days or more, dismemberment or death
Minnesota follows a traditional no-fault insurance system. Drivers must carry liability insurance and PIP coverage, which pays medical expenses and certain economic losses regardless of who caused the accident.
Minnesota requires at least $40,000 in PIP coverage, split evenly between medical expenses and non-medical costs such as lost wages or replacement services. Drivers may file a lawsuit against the at-fault party if injuries exceed the state’s legal thresholds or medical expenses surpass $4,000. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.
Minnesota also requires out-of-state drivers to carry PIP coverage while operating a vehicle in the state. Many insurers automatically adjust coverage to meet Minnesota’s requirements, but drivers should confirm coverage before traveling.
New Jersey
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $15,000
- When can you sue the at-fault driver? Only for serious injuries such as loss of a body part, significant disfigurement, displaced fracture, loss of a fetus, permanent injury or death — unless you choose an unlimited right-to-sue policy
New Jersey is a choice no-fault state, but unlike Kentucky, drivers cannot opt out of PIP coverage. Instead, drivers choose between limiting or preserving their right to sue.
Most policies default to a limited-rights option, which restricts lawsuits against at-fault drivers unless injuries meet the state’s serious injury threshold. Drivers can choose an unlimited right-to-sue policy, which typically increases premiums but allows lawsuits without meeting those thresholds.
After an accident, PIP coverage pays medical expenses and certain injury-related costs regardless of fault. Property damage claims still follow fault rules and are usually handled through the at-fault driver’s insurance.
New York
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $50,000
- When can you sue the at-fault driver? When economic losses exceed $50,000 or injuries involve dismemberment, fracture, loss of a fetus, loss of use of a body part or function, inability to perform normal activities for at least 90 of the 180 days following the accident or death
New York follows a traditional no-fault system. Drivers must carry liability insurance and PIP coverage, which pays medical expenses and certain economic losses regardless of who caused the accident.
New York requires one of the higher minimum PIP coverage limits at $50,000. Drivers may file lawsuits against at-fault parties if injuries meet the state’s serious injury threshold or if economic losses exceed PIP coverage limits. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.
North Dakota
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $30,000
- When can you sue the at-fault driver? When medical expenses exceed $2,500 or injuries involve dismemberment, permanent disfigurement, disability lasting more than 60 days or death
North Dakota follows a traditional no-fault insurance system. Drivers must carry liability insurance, PIP coverage and uninsured/underinsured motorist coverage, making the state’s minimum insurance requirements more comprehensive than many others.
PIP coverage pays medical expenses and certain economic losses regardless of fault. Drivers may file lawsuits against at-fault parties if injuries meet North Dakota’s legal thresholds or medical expenses exceed $2,500. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.
Pennsylvania
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $5,000
- When can you sue the at-fault driver? For serious injuries such as permanent disfigurement, serious impairment or death — or if the at-fault driver was uninsured, intoxicated or driving an out-of-state vehicle, unless you choose full tort coverage
Pennsylvania is a choice no-fault state that gives drivers the option to choose between full tort and limited tort coverage when purchasing insurance.
Drivers who select limited tort coverage typically pay lower car insurance premiums but can only sue an at-fault driver if injuries meet Pennsylvania’s serious injury threshold or involve certain exceptions, such as accidents involving uninsured, intoxicated or out-of-state drivers.
Drivers who choose full tort coverage pay higher premiums but retain unrestricted rights to sue for damages after an accident.
Regardless of tort selection, drivers must carry PIP coverage, which pays medical expenses and certain economic losses regardless of fault. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.
Utah
- Liability insurance required: Bodily injury and property damage
- Minimum Personal Injury Protection (PIP): $3,000
- When can you sue the at-fault driver? When medical expenses exceed $3,000 or injuries involve dismemberment, permanent disfigurement or death
Utah requires drivers to carry liability insurance and PIP coverage, but its minimum PIP requirement is among the lowest of any no-fault state.
Utah’s PIP coverage applies only to medical expenses by default. Drivers must purchase additional coverage if they want protection for lost wages or other economic losses.
Drivers may file lawsuits against at-fault parties if medical expenses exceed $3,000 or injuries meet Utah’s legal severity thresholds. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.
No-fault insurance is often misunderstood, so it’s worth knowing your state’s laws
As you can see from the variation in laws from one no-fault state to the next and even a few at-fault states, no-fault insurance can mean a lot of different things. What it (almost) never means is that you can’t file a claim with the at-fault driver’s insurance after an accident.
It’s worth taking a closer look at how the system in your state works so you know exactly what your options and your rights are if you get into a car accident in your state.