No Fault Insurance
No fault insurance is a very ambiguous topic. Many people have a mistaken impression of what no fault insurance really is. If your state is a “No Fault” state, it is extremely important to know exactly what this means.
Many people who are at fault for accidents are very quick to say, “but this is a no fault state.” They may think that no matter who is at fault for an accident, that each person must go through their own insurance. However, they are incorrect. No fault insurance is applied to accident related injuries. What it really means is that whether you are at fault or not for an accident, each person has the right to go through their own insurance carrier for medical related expenses.
In most no fault states, policies are required to have Personal Injury Protection (PIP) included. Most of those states have a mandatory minimum of $10,000 PIP coverage. No matter who is at fault for the accident, your PIP coverage automatically covers the first $10,000 in medical expenses resulting from the accident. If you are at fault, PIP may be the limit of coverage for your medical expenses unless you purchase additional coverages. Such coverages include extended PIP benefits and MedPay. Although MedPay is an optional coverage; just like PIP, the benefits are available regardless of fault. MedPay covers your medical expenses (up to your policy amount) after your PIP benefits have been exhausted. You also have the right to sue the other party in most cases once your PIP limit is exhausted, if you are not at fault. Make sure to file your claim in a timely manner as in most states the statute of limitations is three years from the date of the accident.
The following is a list of “No Fault” insurance states:
District of Columbia*
Florida
Hawaii
Kansas
Kentucky*
Massachusetts
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania*
*These states allow you to choose between “No Fault” and standard liability/tort coverage.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.