Personal Injury Protection and No-Fault States
In no-fault states, your own personal injury protection pays your medical bills and some other losses after a crash, regardless of fault, and lawsuits are restricted. Here's how the system works.
In most states, the at-fault driver's liability insurance pays for injuries they cause. A minority of states use a no-fault system for injuries instead: your own personal injury protection (PIP) pays your medical expenses and certain other losses after a crash, regardless of who caused it. Rules vary significantly from state to state.
How no-fault works
- Crash occurs. Injured people turn to their own PIP first.
- PIP pays. Medical bills, a share of lost wages, and other listed costs, up to limits.
- Lawsuit threshold. You can sue the at-fault driver only if injuries meet a state threshold.
- Liability claim. For damages beyond PIP when the threshold is met.
Property damage to vehicles is still generally handled under the fault system, through liability and collision coverage.
What PIP commonly covers
- Medical and rehabilitation expenses.
- A portion of lost income.
- Replacement services, such as help with household tasks.
- Funeral expenses in some states.
Lawsuit thresholds
No-fault states limit lawsuits for pain and suffering unless injuries meet a monetary threshold, such as medical bills above a set amount, or a verbal threshold, such as serious injury as defined by law. Some states let drivers choose between no-fault and traditional tort options.
PIP in other states
Some states that aren't strictly no-fault still require or offer PIP as an add-on.
Choosing limits
Consider your health insurance, disability coverage, and how much income you'd lose. Some states let you coordinate PIP with health insurance for a lower premium. See medical payments coverage and disability insurance.
The takeaway
In no-fault states, your own PIP pays first for injuries, and lawsuits are limited to serious cases. Know your state's rules and choose PIP limits that fit your other coverage.
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