# No-fault vs at-fault states

> How no-fault, choice no-fault, add-on and at-fault states handle car accident claims, lawsuit thresholds by state, and what changes when you move.

Canonical page: https://statecover-guide.com/blog/no-fault-vs-at-fault-states/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

In an at-fault state, the driver who causes a crash, through their liability insurance, pays for the other people's injuries and damage. In a no-fault state, your own personal injury protection (PIP) pays your medical bills and lost wages first, whoever caused the crash, and you can sue the other driver for pain and suffering only if your injury passes a legal threshold. The Insurance Information Institute counts 12 no-fault states, including 3 where drivers can choose; the rest follow fault rules, some with PIP added on.

## Key facts

| Fact | Detail |
|---|---|
| No-fault states (Triple-I count) | 12 |
| Choice no-fault states | Kentucky, New Jersey and Pennsylvania |
| No-fault states with a verbal threshold | Florida, Michigan, New Jersey, New York and Pennsylvania |
| No-fault states with a dollar (monetary) threshold | Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah |
| States that dropped no-fault | Colorado, Connecticut, Georgia and Nevada |
| Basic PIP required in New York | $50,000 per person |
| Property damage in no-fault states | Still handled by fault, except in Michigan |

## How at-fault (tort) states work

Most states use the traditional fault, or tort, system. The idea is simple: whoever caused the crash pays for it.

- **Injuries to others.** The at-fault driver's bodily injury liability coverage pays the other people's medical bills, lost wages and pain and suffering, up to the policy limits.
- **Damage to others' property.** Property damage liability pays to repair or replace the other car and anything else the at-fault driver hit.
- **Your own losses when someone else is at fault.** You file a claim with the other driver's insurer, or use your own collision, MedPay or health coverage first and let your insurer recover the money later.
- **Lawsuits.** There is no threshold. You can sue the at-fault driver for pain and suffering after any injury.

Deciding who was at fault, and by how much, is the heart of the system. States use different rules to split blame when both drivers made mistakes, which can reduce or even bar a payment. Our guide to the [at-fault](https://statecover-guide.com/glossary/at-fault/) concept explains the basics.

The appeal of the fault system is that the person responsible pays, and an injured person can be fully compensated, including for pain and suffering. The downside is delay: payment can wait until fault is settled, and disputes can end up in court.

## How no-fault states work

No-fault states change who pays for injuries. Every driver must carry [personal injury protection](https://statecover-guide.com/coverage/personal-injury-protection/), and after a crash each person's own PIP pays their medical bills, a share of lost income and some other costs, regardless of who caused it. The NAIC describes no-fault as compulsory first-party benefits combined with a general limit on lawsuits.

That limit is the trade-off. Because your own insurer pays quickly, you give up some of your right to sue. You can still sue the at-fault driver for pain and suffering, but only if your injury meets the state's [tort threshold](https://statecover-guide.com/glossary/tort-threshold/).

### Verbal and monetary thresholds

There are two kinds of threshold:

- **Verbal threshold.** Your injury must reach a level of seriousness written into the law, such as a fracture, permanent injury, significant disfigurement or death. The Triple-I lists Florida, Michigan, New Jersey, New York and Pennsylvania as verbal-threshold states.
- **Monetary threshold.** Your medical costs must pass a set dollar amount before you can sue. The Triple-I lists Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah.

The NAIC's state law tables record the dollar amounts. Several states accept either a dollar amount or a serious injury.

| State | Required PIP | Dollar threshold to sue for pain and suffering (2022) |
|---|---|---|
| Hawaii | $10,000 | $5,000 |
| Kansas | $4,500 medical, plus other benefits | $2,000 |
| Kentucky | $10,000 | $1,000 or a serious injury |
| Massachusetts | $8,000 | $2,000 |
| Minnesota | $40,000 | $4,000 or a serious injury |
| North Dakota | $30,000 | $2,500 or a serious injury |
| Utah | $3,000 | $3,000 |

And in the verbal-threshold states, the required PIP looks like this:

| State | Required PIP | Threshold type |
|---|---|---|
| Florida | $10,000 | Verbal |
| Michigan | Your choice of PIP medical level, unlimited by default | Verbal |
| New Jersey | $15,000 per person per accident | Choice; verbal if you limit your right to sue |
| New York | $50,000 | Verbal |
| Pennsylvania | $5,000 of medical benefits | Choice; serious injury if you pick limited tort |

Dollar thresholds have drawn criticism. The Triple-I notes that a very low threshold made Connecticut's old no-fault law comparatively ineffective. Several states later abandoned the system, including Colorado, which let its law expire in July 2003.

### Car damage is still about fault

No-fault rules cover injuries. Damage to cars and other property is still handled by fault in almost every no-fault state, so the at-fault driver's property damage liability, or your own collision coverage, pays for the car.

[Michigan](https://statecover-guide.com/location/michigan/) is the exception, because of its property protection and mini-tort rules. Under the 2019 reform (policies from July 1, 2020) the default liability is 250/500/10; drivers can choose limits as low as 50/100/10. Property protection insurance pays up to $1 million for damage in Michigan. A mini-tort rule allows claims of up to $3,000 for vehicle damage. Michigan drivers also pick their PIP medical level from a set of options, which is why the state's rules deserve a close read.

## Choice no-fault: New Jersey, Pennsylvania and Kentucky

In Kentucky, New Jersey and Pennsylvania, drivers decide for themselves whether to accept limits on their right to sue.

- **[New Jersey](https://statecover-guide.com/location/new-jersey/)** offers a Limitation on Lawsuit option and a No Limitation on Lawsuit option. With the limited option, you can sue for pain and suffering only after one of the permanent injuries listed in the law, such as a displaced fracture or significant scarring. The state's buyer's guide says the choice affects what your insurance costs. If you make no choice, the limited option applies by law.
- **[Pennsylvania](https://statecover-guide.com/location/pennsylvania/)** offers limited tort and full tort. The Pennsylvania Insurance Department says limited tort offers significant premium savings, but you give up pain-and-suffering payments unless your injury meets an exception in the law. Full tort applies if you do not choose limited tort.
- **[Kentucky](https://statecover-guide.com/location/kentucky/)** applies no-fault limits automatically, but drivers can reject the limits on their right to sue by filing a form with the Department of Insurance.

The choice is a real trade-off between a lower premium and a stronger right to sue after a painful injury that heals. A licensed agent or the state insurance department can explain the exact wording on your state's form.

## Add-on states: PIP without lawsuit limits

A third group sits in between. In add-on states, first-party benefits such as PIP are required or must be offered, but there is no limit on lawsuits. You get quick payment from your own policy and keep the full right to sue.

Our state facts label these states "At-fault (add-on PIP)", following the Triple-I's categories. Examples include:

- **[Texas](https://statecover-guide.com/location/texas/):** Included in every policy unless you reject it in writing (required amount: $2,500 per person)
- **[Maryland](https://statecover-guide.com/location/maryland/):** Must be offered (at least $2,500); can be waived or limited
- **Oregon:** Required: $15,000 per person for medical expenses
- **Delaware:** Required: $15,000 per person / $30,000 per accident

Labels vary by source. The NAIC, for example, files Delaware and the District of Columbia under no-fault and treats Texas as a tort state, and it warns that two states in the same category may not have comparable systems. What matters for you is your own state's rules on PIP and lawsuits, which you can check in the [state minimum lookup](https://statecover-guide.com/tools/state-minimums/).

## Every state by fault system

The table groups all states and the District of Columbia by the fault system recorded in our state facts. Each name links to that state's guide.

| Fault system | Number | States |
|---|---|---|
| No-fault | 9 | Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New York, North Dakota, Utah |
| Choice no-fault | 3 | Kentucky, New Jersey, Pennsylvania |
| At-fault (add-on PIP) | 8 | Arkansas, Delaware, District of Columbia, Maryland, Oregon, South Dakota, Texas, Washington |
| At-fault | 31 | Alabama, Alaska, Arizona, California, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin, Wyoming |

Each state's sources are listed in the state minimum lookup.
## What changes after a crash

The biggest practical difference shows up in the days after an accident.

| Step | At-fault state | No-fault state |
|---|---|---|
| Your medical bills | Claim against the at-fault driver's insurer, or use your MedPay or health insurance first | Claim on your own PIP first, whoever caused the crash |
| Lost wages | Part of your claim against the at-fault driver | A share is paid by your PIP, up to its limits |
| Damage to your car | At-fault driver's property damage liability, or your collision coverage | Usually the same as in an at-fault state |
| Pain and suffering | You can claim or sue for it after any injury | Only if your injury passes the threshold |
| Who you deal with first | Often the other driver's insurer | Your own insurer |

Example: another driver runs a stop sign and you suffer a sprained wrist with $3,000 of medical bills. In an at-fault state, you claim the $3,000 plus an amount for pain and suffering from the other driver's insurer. In a no-fault state, your own PIP pays the bills up to its limit, and you cannot sue for pain and suffering unless the injury meets the threshold. The figures are hypothetical.

## What to do after a crash in a no-fault state

1. **Get to safety and call the police** if anyone is hurt or the cars cannot be moved.
2. **Tell your own insurer quickly.** PIP is a claim on your own policy, and some no-fault states set short deadlines to get treatment or report a claim.
3. **See a doctor and keep every bill.** PIP pays based on documented medical costs and lost income.
4. **Record lost work time.** Ask your employer for a statement of missed days and pay.
5. **Claim car damage separately.** Damage to your car usually goes through the at-fault driver's insurer or your collision coverage.
6. **Check whether your injury passes the threshold.** If it may be serious, a licensed attorney can explain your options under your state's law.

Our [after-a-crash checklist](https://statecover-guide.com/claims/what-to-do-after-a-crash/) and guide to [filing a claim](https://statecover-guide.com/claims/filing-a-claim/) cover the general steps in any state.

## What happens when you move or drive in another state

Your policy follows the rules of the state where your car is registered and kept. Moving from an at-fault state to a no-fault state usually means adding PIP and learning a new lawsuit rule; moving the other way can mean losing PIP and relying more on [MedPay](https://statecover-guide.com/coverage/medical-payments/) and health insurance. You will need a new policy that meets your new state's rules within that state's deadline, which our [new residents guide](https://statecover-guide.com/drivers/new-residents/) explains.

If you are only visiting, a crash is generally handled under the laws of the state where it happened. Many policies include an out-of-state provision that adjusts your coverage to meet another state's minimums while you drive there; check your policy wording or ask your insurer.

## FAQ

### How many states are no-fault states?

The Insurance Information Institute counts 12 no-fault states. In 3 of them, Kentucky, New Jersey and Pennsylvania, drivers can choose whether to accept limits on lawsuits.

### What is the difference between no-fault and at-fault car insurance?

In an at-fault state, the driver who caused the crash pays for others' injuries through liability insurance, and injured people can sue. In a no-fault state, everyone's own PIP pays their injury costs first, and lawsuits for pain and suffering are limited to injuries above a threshold.

### Can you sue after a car accident in a no-fault state?

Yes, but only for pain and suffering when your injury passes the state's threshold, either a dollar amount of medical costs or a serious injury defined in the law. You can still pursue claims for property damage based on fault.

### Does no-fault insurance cover damage to my car?

No. PIP covers injuries. Car damage is still paid by the at-fault driver's property damage liability or by your own collision coverage, except under Michigan's special rules.

### Is no-fault insurance more expensive?

Not necessarily. No-fault states appear at both ends of the NAIC's cost ranking, with Florida and New York near the top and North Dakota and Hawaii near the bottom. Our post on the [most expensive states for car insurance](https://statecover-guide.com/blog/most-expensive-states-for-car-insurance/) compares them.

### What is an add-on state?

An add-on state requires or offers PIP-style first-party benefits but does not limit your right to sue. Texas and Maryland are examples.

### What happens if I have an accident in a different state?

The laws where the crash happened apply. Many policies adjust to meet that state's requirements while you are driving there. Contact your insurer as soon as possible after the crash.

## Sources

- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance) — no-fault, choice and add-on definitions, threshold types by state, repealed laws
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf) — tort law categories and dollar thresholds by state (Table 40)
- [New Jersey Department of Banking and Insurance, Auto Insurance Buyer's Guide](https://nj.gov/dobi/division_consumers/pdf/autoguide2026.pdf) — Limitation on Lawsuit options, listed injuries and the default choice
- [Pennsylvania Insurance Department, Auto Insurance Guide](https://www.pa.gov/content/dam/copapwp-pagov/en/insurance/documents/consumer-help-center/learn-about-insurance/auto-insurance-guide.pdf) — limited tort and full tort
- [Kentucky Revised Statutes, KRS 304.39-110](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=46758) — Kentucky minimums and tort rejection
- [Michigan Department of Insurance and Financial Services, Auto Insurance FAQ](https://www.michigan.gov/autoinsurance/frequently-asked-questions) — Michigan liability, property protection and mini-tort rules
- [New York State Department of Financial Services, Auto Insurance Information for Consumers](https://www.dfs.ny.gov/consumers/auto_insurance), as of October 28, 2026
- [Hawaii Revised Statutes, Section 431:10C-103.5 (personal injury protection benefits; limits)](https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010C-0103_0005.htm), as of October 28, 2026
- [Kansas Statutes, K.S.A. 40-3103 (definitions of personal injury protection benefits)](https://www.ksrevisor.gov/statutes/chapters/ch40/040_031_0003.html), as of October 28, 2026
- [Massachusetts General Laws, Chapter 90, Section 34A (motor vehicle liability policy defined)](https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXIV/Chapter90/Section34A), as of October 28, 2026
- [Minnesota Statutes, Section 65B.44 (basic economic loss benefits)](https://www.revisor.mn.gov/statutes/cite/65B.44), as of October 28, 2026
- [North Dakota Legislative Assembly, N.D.C.C. chapter 26.1-41 (Auto Accident Reparations Act)](https://ndlegis.gov/cencode/t26-1c41.pdf), as of October 28, 2026
- [Pennsylvania Insurance Department, Auto Insurance](https://www.pa.gov/agencies/insurance/consumer-help-center/learn-about-insurance/auto-insurance), as of October 28, 2026
- [Texas Legislature, Insurance Code chapter 1952 (1952.101, 1952.152, 1952.153)](https://tcss.legis.texas.gov/resources/IN/htm/IN.1952.htm), as of October 28, 2026
- [Maryland Insurance Administration, A Consumer Guide to Auto Insurance](https://insurance.maryland.gov/Consumer/Documents/publications/autoinsuranceguide.pdf), as of October 28, 2026
- [Oregon Legislature, ORS chapter 742 (742.502, 742.520, 742.524)](https://www.oregonlegislature.gov/bills_laws/ors/ors742.html), as of October 28, 2026
- [Delaware Code, Title 21, Section 2118 (requirement of insurance)](https://delcode.delaware.gov/title21/c021/sc01/index.html), as of October 28, 2026
- [Kentucky Revised Statutes, KRS 304.39-020 (definitions; basic reparation benefits)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57854), as of July 15, 2026
- [Utah Legislature, Utah Code 31A-22-307 (personal injury protection coverages and benefits)](https://le.utah.gov/xcode/Title31A/Chapter22/C31A-22-S307_2023050320230503.html), as of May 3, 2023
- [Florida Department of Highway Safety and Motor Vehicles, Florida Insurance Requirements](https://www.flhsmv.gov/insurance/), as of April 21, 2021