What Is a No-Fault State?
In no-fault states, each driver's own insurance pays for their own medical expenses and certain losses after an accident, regardless of who caused it. Injured parties file claims with their own Personal Injury Protection (PIP) coverage. No-fault systems are designed to reduce litigation over minor accidents.
No-Fault States in the US
As of now, no-fault states include Florida, Michigan, New York, New Jersey, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah. Some states offer choice no-fault systems. State laws vary considerably in their specific rules.
What PIP Covers
Personal Injury Protection (PIP) typically covers medical expenses, a percentage of lost wages, and sometimes replacement services and death benefits — up to policy limits. PIP does not generally cover pain and suffering damages or property damage.
The Verbal Threshold
Most no-fault states allow you to step outside the no-fault system and sue the at-fault driver when injuries meet a certain severity threshold — either a "monetary threshold" (medical bills exceed a dollar amount) or a "verbal threshold" (injuries meeting specific definitions like permanent injury, significant scarring, or death). Threshold requirements vary significantly by state.
Limitations of No-Fault
The no-fault system limits your ability to recover pain and suffering damages for minor injuries. However, for serious injuries meeting the threshold, a full personal injury claim against the at-fault driver is available. An attorney familiar with your state's no-fault law can evaluate whether your injuries qualify for a third-party claim.
Find a Personal Injury Attorney Near You
InjuryClaimSource is an educational resource. We are not a law firm and do not provide legal advice. Consult a qualified personal injury attorney for advice about your specific situation.