True No-Fault Automobile Insurance
What Does True No-Fault Automobile Insurance Mean?
True no-fault automobile insurance is a type of car insurance that covers damages or injuries you sustain in a car accident, regardless of who is at fault, but limits your ability to sue. Some states mandate it, others offer it as an option, and some states do not offer it at all.
Insuranceopedia Explains True No-Fault Automobile Insurance
Currently, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah are no-fault states, with Kentucky, New Jersey, and Pennsylvania allowing drivers the option to choose traditional “tort” car insurance policies. Additionally, 10 other states offer “no-fault” coverage as an add-on.
With “pure” true no-fault automobile insurance, the policyholder receives personal injury protection (PIP) but relinquishes the right to sue. However, no state technically offers pure policies, as each allows the right to sue once damages exceed a defined threshold.
