Understanding No-Fault Auto Insurance States

No-fault auto insurance is a system in which drivers involved in accidents make bodily injury claims with their insurance, instead of addressing accident-related medical bills with the at-fault driver’s auto insurance company. After a covered accident, the parties involved may be compensated by their own insurance companies, regardless of who was at fault for the collision.

The no-fault auto insurance system aims to streamline the claims process and reduce the burden on courts by minimizing lawsuits related to minor accidents. Currently, twelve states in the United States have some form of no-fault auto insurance laws in place, each with its variations and requirements.

What Insurance Is Required in No-Fault States? 

In no-fault states, drivers may be required to carry personal injury protection coverage as part of their auto insurance policies. PIP coverage may help pay for medical expenses, lost wages and other related costs for the policyholder and their passengers, regardless of fault, up to the policy’s limits.

Personal injury protection policies have dollar limits, and in cases of severe injury or significant damage, individuals may still have the option to pursue a lawsuit against the at-fault driver.

No-fault states also typically require drivers to carry property damage liability, which may help pay for third-party accident-related property damage after a covered accident.

California drivers must maintain minimum amounts of auto liability insurance. Personal injury protection coverage is optional, as California is an at-fault insurance state. If you are in an accident in California, the at-fault driver is typically responsible for the other party’s injuries and property damage.

How to Get Auto Insurance

All drivers should review their auto insurance coverage regularly and consult a knowledgeable insurance agent to get appropriate policies, endorsements and dollar limits.

Contact California Liberty Insurance in Sacramento, California, to learn about the state’s minimum required auto insurance and get the right coverage at favorable rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.