No Fault States

No Fault Systems

The aim of no fault car accident liability insurance policies is to lower legal costs. If each party involved in an accident is automatically reimbursed by his own insurance company, it reduces the need for insurance claims adjusters to go to court to determine which company is responsible for what damages.

The one penalty that at-fault drivers receive for causing auto accidents is higher car insurance premiums.

No fault states include:

• Florida

• Hawaii

• Kansas

• Kentucky

• Massachusetts

• Michigan

• Minnesota

• New Jersey

• New York

• North Dakota

• Pennsylvania

• Utah

Recovering Personal Injury And Property Damage Expenses

No fault auto insurance generally covers the personal injury protection (PIP) portion of your auto insurance policy. For example, each driver’s auto insurance company would cover medical bills and lost wages for days missed from work.

Damages made to a licensed driver’s car or truck could be recouped in court. The injured driver who did not cause the auto accident could sue the driver who caused the accident in court to get reimbursed for the damages.

Some states have limits on the amount of money that an at-fault driver can be sued for. These limits are often called monetary thresholds. States with monetary thresholds include:

• Hawaii

• Kansas

• Kentucky

• Massachusetts

• Minnesota

• North Dakota

• Utah

Additionally, a handful of states allow drivers to purchase additional PIP insurance. This insurance, often called "add-on" coverage, permits drivers to purchase PIP auto insurance that will pay for bodily injuries to a driver regardless of who caused the accident.

These states allow injured drivers to sue in order to be reimbursed for medical expenses and bodily injuries that they suffered during the auto accident. Add-on states are:

• Arkansas

• Delaware

• Washington DC

• Maryland

Shopping for Auto Insurance Coverage

Regardless of the state that you reside in, state laws mandate that you carry sufficient auto liability insurance. These guidelines must be met whether or not you live in a state that has no-fault auto insurance.

Once you choose an insurance company, read your auto insurance policy thoroughly so you are familiar with the amount of insurance you will be reimbursed for property damage expenses. Statements written into your auto insurance policy should also outline the process you must complete to be reimbursed for negligence of another driver.