No-Fault Auto Insurance

The purpose of no-fault car insurance is to make sure that damages and injuries can be covered when there is no driver to blame. Some states have attempted to get rid of fault-based automobile insurance entirely: there are currently twelve no-fault automobile insurance states. Whether it's in a no-fault state or a state that usually finds fault, a finding of no-fault by auto insurance means that each company agrees to pay for the damages and injuries of that company's driver (up to the limits of the policies). No-fault insurance coverage typically includes a requirement for personal injury protection (PIP) auto insurance. To find cheap no-fault insurance you can enter your ZIP code into our search tool, and you can learn more about no-fault auto insurance below.

Free Auto Insurance Comparison

Enter your ZIP code below to compare auto insurance rates.

secured lock Secured with SHA-256 Encryption

Jimmy McMillan

Licensed Insurance Agent

Jimmy McMillan is an entrepreneur and the founder of, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...

Licensed Insurance Agent

Laura D. Adams

Insurance & Finance Analyst

Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...

Insurance & Finance Analyst

UPDATED: Jun 27, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

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.

What is no-fault automobile insurance coverage? In some accidents, it’s crystal clear which driver was at fault: the culpable driver ran a stop sign, ignored a red light and kept going, or ran down a pedestrian while driving drunk. The fault can and should be attributed to the driver who broke the law and created an unsafe driving situation.

But sometimes, “fault” in an accident is a little more ambiguous. Maybe an invisible patch of ice sent your vehicle spinning out of control. Maybe you, the car in front of you, and the car behind you were involved in a pile-up on a busy highway. Maybe a traffic light malfunctioned and you didn’t know it was your turn to stop. For some states, ambiguous situations like these (and many more) may be classified as “no-fault” accidents.

In these situations, your liability insurance will cover your damages, which may be worth considering when you determine how much liability coverage you should purchase.

Coverage of this variety ensures that your car insurance provider will cover all of your damages in the event of an accident. This is regardless of who is at fault, and up to the policy-specified limit. Other drivers involved are protected by their own car insurance plans.

To compare rates for no-fault auto insurance coverage you can use our FREE rate comparison tool above.

How No-Fault Automobile Insurance Works

Most car insurance companies have elements of no-fault coverage in some of their policies, so you may already be familiar with the concept on some level. Property damage insurance, like Comprehensive and Collision, already functions in this fashion. However, there are certain drawbacks to this kind of policy: for example, if the other party is deemed to be at-fault, you will have no legal recourse to sue.

Enter your ZIP code below to compare auto insurance rates.

secured lock Secured with SHA-256 Encryption

What are No-Fault States?

If you aren’t sure whether or not you live in a no-fault state, now is the time to get educated. Currently, there are twelve states (and Puerto Rico) that use some form of the no-fault auto insurance system:

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Utah

The purpose of the no-fault system is generally two-fold. Firstly, it facilitates medical treatment to car accident victims. Without having to wait for the insurance company to determine who is at fault, victims are eligible for immediate funding in emergency situations. The second is to reduce monthly insurance plan payments.

It should also be noted that in Kentucky, New Jersey, and Pennsylvania, you have a choice between accepting a no-fault policy or purchasing a “traditional tort” policy. Traditional policies, depending on your state laws, may permit you to sue at-fault parties for pain and suffering. No-fault policies do not offer this additional legal option; you can only sue for the cost of your medical expenses and property damage repair/replacement.

In most cases, insurance companies make payouts based on the severity and culpability of the accident. The intention of a no-fault system is to lower the number of cases in court and also to avoid “frivolous” lawsuits (such as lawsuits aimed at financial compensation for pain and suffering associated with a serious accident). In theory and sometimes in practice, this keeps your insurance premiums from rising significantly higher after the accident and can also keep your legal fees lower. But if your accident does result in pain, suffering, lost wages, and more, you might not have the ability to take the culpable party (or parties) to court.

No-Fault State Laws and Unforeseen Consequences

Every state is different, and by the same token so are their laws. So, if you live in a no-fault state, it is important that you understand their requirements.

Laws will vary, as none of the states have a purely no-fault system. Some states allow for lawsuits in a limited number of situations. But most no-fault laws will have some of the following in common:

  • As stated, plans under this system don’t allow for pain and suffering claims and don’t allow you to sue for them.
  • No-fault plans do not cover you for auto damages, Collision, or Comprehensive claims; other components of your insurance policy are designed to take care of this.
  • Insurance covers you and those in your policy for medical bills, lost wages, etc.
  • In the cases where you are allowed to sue, you can’t do so until no-fault car insurance expenses pass a certain threshold.

Even though this type of system is aimed at reducing costs, it is creating a number of problems. Medical fees are on the rise, special-case lawsuits are increasing, and fraud is wreaking havoc. These problems are causing auto insurance companies to either raise premiums or reduce the amount of business they conduct in these states.

Auto Insurance Costs: Fault vs. No-Fault States

State Minimum Policy
Basic Coverage
Comprehensive Coverage

Florida (No-Fault)
Michigan (No-Fault)
New Jersey (No-Fault)








If you live in any of the no-fault states listed above and you’re worried about high insurance premiums, enter your zip code below to make sure you’re getting the rate you deserve.

Free Auto Insurance Comparison

Enter your ZIP code below to compare auto insurance rates.

secured lock Secured with SHA-256 Encryption