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 pays for damages or injuries you sustain in case of a car accident, regardless of who is at fault, but restricts your right to sue. Some states require it, some states 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 offering drivers a choice to opt for traditional "tort" car insurance policies. Additionally, 10 other states allow "no-fault" coverage as an add-on.

With "pure" true no-fault automobile insurance, the policyholder benefits from personal injury protection (PIP), but gives up the right to sue. However, no state technically offers pure policies, as each allows the ability to sue once damages exceed a defined threshold.