How no-fault insurance works
In a no-fault state, your own personal injury protection (PIP) pays your medical bills and part of your lost income after a crash, whoever caused it. In exchange, you can sue the at-fault driver for pain and suffering only if your injury passes the state’s threshold.
Thresholds to sue
States use one of two kinds:
- Monetary threshold: medical bills above a set amount, such as $2,000 in Massachusetts or $4,000 in Minnesota
- Verbal threshold: a serious injury as defined by law, such as a fracture, permanent injury or significant disfigurement, used in Florida, Michigan, New Jersey, New York and Pennsylvania
Kentucky, New Jersey and Pennsylvania let drivers choose between no-fault and traditional tort rules.
What PIP pays
PIP typically pays reasonable medical expenses and a share of lost wages, often 60% to 85%, up to the policy limit. Some states add replacement services and funeral benefits. Florida pays 80% of medical bills and 60% of lost income up to $10,000.
When PIP runs out
Once PIP is exhausted, health insurance usually pays medical bills. If your injury meets the threshold, the claim against the at-fault driver covers what PIP did not, plus pain and suffering. See every state’s threshold in no-fault states.
Questions people ask
Which states are no-fault?
Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
Do I have to use PIP first?
In no-fault states, yes. PIP is the primary coverage for your medical bills after a crash.