In no-fault states, your own auto insurance pays certain medical expenses and lost income after a crash regardless of who caused it. You can usually sue the at-fault driver only if injuries cross a threshold.
The basics
- Your personal injury protection (PIP) coverage pays first for medical costs and sometimes lost wages.
- Limits and benefits vary by state and policy.
- Property damage is typically still handled on a fault basis.
Where it applies
About a dozen states use some form of no-fault, including Florida, Michigan, New York and New Jersey, and a few allow drivers to choose. Rules differ and change, so check your state insurance department.
Lawsuit thresholds
To sue for pain and suffering, you generally must meet a threshold, such as a dollar amount of medical bills or a serious injury category. Below it, your recovery is mostly limited to no-fault benefits.
Tips
- File your PIP claim quickly, since deadlines are short.
- Keep medical records and bills.
- Understand your policy limits.
- Ask a lawyer about thresholds if injuries are serious.
Frequently asked questions
Does no-fault mean no one is at fault?
No. Fault still matters for lawsuits and property damage.
Can I choose to opt out?
Some states offer options.