What states have no-fault car insurance laws?
Only 12 states have no-fault car insurance laws: Florida, Hawaii, Kansas, Kentucky, Michigan, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. No-fault insurance states require auto insurance companies to cover your claim after an accident under your chosen policy limits. Then the insurance companies can determine fault and one can pay the other after the fact. Enter your ZIP code below to start comparing no-fault auto insurance rates in your state.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
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UPDATED: Feb 25, 2024
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Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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.
UPDATED: Feb 25, 2024
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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. Insurance companies are expected to settle the costs once fault is determined afterwards. 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 drivers by avoiding the question of who was at fault for almost all car accidents of minor damage. In tort law states, fault would determined by a police report or other investigation. For drivers, this means your claim gets processed and paid immediately based on the coverage you paid for. You don’t have to wait for insurers to investigate to make sure the other party was at fault before paying your claim. 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. It speeds up the process to get claims paid and drivers back on the road.
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.
Read more: North Dakota Car 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. If their investigation determines you were not at fault, your insurance company would recover the claim paid from the other side’s insurance. While it’s wise to have collision, comprehensive, and especially personal injury protection in tort states as well, you should at least have PIP in no fault states. This way, you can be sure your medical expenses will be covered under the benefits of no-fault laws.
Each insurance company sharing the coverage helps the claims process enormously and eliminates expensive litigation in many cases. If you’re dealing with your insurance company, they’re more likely to be able to easily pull up your policy and make the process as seamless as possible. If there is a lawsuit, drivers are essentially signing their right to sue over to their auto insurer in a no-fault state.
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. State minimum liability insurance typically covers a small accident if you’re at fault. It’s still advisable to carry higher liability amounts and personal injury protection. Unfortunately, if the damages you cause far exceed your liability coverage, you could still be held personally responsible for the difference.
If you’re looking for better and more affordable coverage, enter your ZIP code below and start comparison shopping today!
Compare quotes from the top car insurance companies and save
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Licensed Insurance Agent
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.