What Is No Fault Insurance And How Does A Claim Work?

If you own a vehicle, it is likely that it is insured. In the United States and some other countries, vehicles accessing public roads and highways must be insured. Fortunately, there are a variety of policies to choose from to keep the coverage affordable for everyone. With so many policies to choose from, many people have difficulty understanding what each policy covers and deciding which coverage they need. One coverage that is often overlooked is no fault, which can play a major role in helping prevent financial loss associated with motor vehicle accidents.

What Is No Fault Insurance?

According to statistics, there are more than six million drivers involved in motor vehicles accidents each year. And, many of these individuals are not covered by the proper insurance policies. So, they end up spending out of pocket for medical expenses and damage to their vehicle and/or the other vehicles involved in the accident. Every time you get into a vehicle there is a possibility of you being involved in a collision. So, it is important to get covered with the proper policies before it is too late.

No fault insurance is a policy that covers all or some of the medical expenses related to collisions. It will also cover all or some of your lost earnings. It covers these expenses even if you are found to be liable for the accident.


There are several states that require motorists to carry no fault insurance. These states include Massachusetts, North Dakota, Michigan, Hawaii, Kansas, Florida, Columbia, Utah and Minnesota. States, like Kentucky, Pennsylvania and New Jersey, allow motorists to choose if they want to carry no fault insurance. If you need to help deciding whether or not to purchase this coverage you may need to seek the advice of a car accident attorney.

What Is A No Fault Claim?

No fault claims, also known as Personal Injury Protection (PIP) claims, are made through a driver’s own insurer. For example, a motorist involved in an accident files a no-fault claim with their personal automobile insurer for payment of lost earnings and medical bills. Claims can also make a claim for damages paid out-of-pocket.

Pain And Suffering

Unlike some other automobile insurance policies, no fault coverage does not cover claims for pain and suffering. These claims are typically covered by the insurance of the driver who is found to be liable for the accident. No fault insurance comes in handy for drivers who reside in states with no fault laws that prohibit motorists from filing personal injury claims against at-fault drivers if their medical expenses are less than $3,000.

Full Cooperation Required

No fault insurance varies from state to state. However, most states require motorists who no fault claims to be fully cooperative with at-fault drivers’ insurance companies. So, if you expect to receive compensation for a no-fault claim, you may be required to give a recorded statement to the at-fault driver’s insurer. If you are fully prepared for such an undertaking, the process will go smoother and you will be well on your way to receiving full compensation.