Jessica Sautter is a Content Writer for with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 14, 2020

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Key takeaways...

  • You can live in a no-fault insurance state, but you can’t buy a no-fault car insurance policy
  • Only 13 states have no-fault car insurance laws
  • In a car accident, no-fault car insurance covers the driver, passengers, the vehicle, and the other driver (etc.) involved

No-fault car insurance is a way to avoid having to prove fault in a car accident. Only around a dozen states have some form of no-fault car insurance laws, while most operate under the tort system.

No-fault car insurance helps law enforcement and insurance companies by avoiding the question of who was at fault for almost all car accidents of minor damage. The pros of no-fault car insurance are:

  • Quicker claims processing for policyholders
  • Less of a strain on the legal system
  • (Arguably) Lower car insurance rates

No-fault car insurance is not a form of insurance coverage, but a set of laws set up to help drivers and insurance companies work together and avoid the hassles of litigation for minor accidents.

You can live in a no-fault car insurance state, but you cannot buy a no-fault car insurance policy.

Do you want to avoid costly auto insurance that doesn’t fully cover you? Enter your ZIP code above and compare at least three to four policies to find better coverage today!

What states have no-fault car insurance laws?

Currently, only a small list of states have no-fault car insurance laws including:

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

It’s important to know that in New Jersey, Pennsylvania, and Kentucky drivers are allowed an option to choose between traditional car insurance coverage and no-fault auto insurance.

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How does no-fault car insurance work?

In most accidents — where no-fault car insurance laws are in place the process is pretty simple.

In the event of an accident, your car insurance company will pay for any damage caused to you, your passengers, and your vehicle regardless of who was “at fault.”

Coverage for a car accident also applies to the other driver. Essentially, each car insurance company will pay for claims pertaining to the parties they have insured.

Each insurance company sharing the coverage helps the claims process enormously and eliminates expensive litigation in many cases.

While a driver can still sue for many reasons such as extreme negligence or severe financial reasons, most car accidents in no-fault car insurance states are quickly processed and drivers enjoy a hassle-free experience.

If you’re looking for better and more affordable coverage, enter your ZIP code below and start comparison shopping today!