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Written by:

Laura Berry

Former Insurance Agent

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Written by Laura Berry

Former Insurance Agent

Reviewed by:

Joshua Adamson

Joshua is a copywriter at Obrella who for more than 10 years has been creating content about insurance, health care, and more. He helps companies explain complex insurance subjects in simple ways so that customers can make smart buying decisions. He spends way too much time binge-watching Netflix, loves the outdoors and has a cat who tolerates him.

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Reviewed by Joshua Adamson

UPDATED: Apr 5, 2024

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Read on to learn more about no-fault car insurance to determine if you really need it. Then, enter your ZIP code into our free quote comparison above to find the right no-fault auto insurance policy for you.

No-Fault Auto Insurance Defined

What is no-fault coverage? No-fault insurance is often called personal injury protection (PIP) coverage and helps pay medical expenses after an accident. No-fault insurance applies to anyone in your car and works even if you caused the accident.

So, how does no-fault insurance work? No-fault insurance covers medical bills whenever you or your passengers are injured in a collision. Some insurance types only cover damage when a specific person is responsible. For example, your liability auto insurance only covers damage you cause to other drivers. It doesn’t pay for your car if someone hits you.

No-fault insurance pays for medical expenses no matter what happens. If you or one of your passengers is injured in any collision, your no-fault insurance has you covered. No-fault coverage extends to injuries sustained as a passenger in other cars and if you’re a pedestrian hit by a vehicle.

In most cases, no-fault insurance is optional — only a few states require it. However, no-fault insurance is not available in every state. You can look into medical payments coverage if you live in a state that doesn’t sell no-fault insurance. 

What No-Fault Auto Insurance Covers

While they cover similar things, no-fault insurance covers a lot more than medical payments coverage. Coverage varies by state and company, but no-fault insurance usually covers the following:

  • Medical bills
  • Lost income due to injuries sustained in an accident
  • Funeral expenses if someone dies in the accident
  • Life services while you recover, like house cleaning or dog walking
  • Physical therapy

No-fault insurance doesn’t help pay for repairs to your vehicle, but it helps for just about everything related to medical expenses after an accident.

No-Fault Auto Insurance Cost

How much does no-fault insurance cost? Like other types of car insurance, the cost of no-fault coverage depends on several factors. One of the most important is how much no-fault insurance your state requires. The more insurance you need, the higher your rates will be.

Michigan is an excellent example of state requirements affecting your insurance costs. Michigan requires drivers to carry a $250,000 limit for no-fault insurance, leading to the country’s highest insurance rates. Read more about Michigan auto insurance.

Although no-fault insurance adds a lot of value to your policy, the average policy adds about $75 monthly to your rates. While residents in states requiring no-fault insurance must add it to their policy, financial protection against medical bills benefits everyone.

States Offering No-Fault Auto Insurance Coverage

Most states require a minimum amount of insurance, but only a few require no-fault insurance. Several other states allow drivers to buy no-fault insurance but don’t require it.

According to the Insurance Information Institute, the states requiring no-fault insurance are:

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

Kentucky, Pennsylvania, and New Jersey allow drivers to choose between no-fault insurance and full tort liability, which changes how much you can sue another driver. Full tort liability insurance tends to be more expensive than no-fault coverage.

States that allow for the sale of no-fault insurance without requiring it include:

  • Arkansas
  • Delaware
  • Maryland
  • New Hampshire
  • Oregon
  • South Dakota
  • Texas
  • Virginia
  • Washington
  • Wisconsin

As you can see, the number of states that offer no-fault insurance is limited. If you’re interested in no-fault insurance, make sure it’s available in your state.

How to File a No-Fault Auto Insurance Claim

Filing a claim with no-fault insurance is a much simpler process than dealing with another driver’s company.

So, what is a no-fault claim? When you’re in an accident or collision, you can file a no-fault claim the same way you would with any other type of coverage. Most large insurance companies allow you to file a claim on a website or mobile app, but you can always call and speak with a representative.

Since this is a no-fault insurance claim, you don’t have to worry about proving anything about your claim. No-fault insurance only pays for specific injuries, but filing your claim is relatively simple.

Find Affordable No-Fault Auto Insurance Today

No-fault insurance is valuable coverage that can protect you and your passengers from expensive health care bills after an accident. While it can increase your insurance rates significantly, protecting yourself from costly medical bills is worth it.

However, not all states sell no-fault insurance. An insurance representative can help you determine what’s available in your state, and comparing rates will help you find the most affordable coverage.