No Fault Insurance
What Is It and Why Should I Care?
Before purchasing auto insurance, it’s important to know what kind of
auto insurance system your state follows– No-Fault or Fault (Tort).
Understanding this will help you decide how much coverage you will need
if you are ever involved in an accident.
In most states, the driver who is at fault for an accident is
responsible for paying the costs of damages and injuries to the other
driver. This is where Liability coverage comes in. Bodily Injury will
pay for their medical costs and Property Damage pays for any damages
sustained to their vehicle. In those states, your policy will only cover
your own medical and property damage costs if you purchase Medical
Payments and Collision coverages, respectively.
If you live in Florida, Hawaii, Kansas, Kentucky, Massachusetts,
Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania,
or Utah, your state operates as a no-fault state. In these states,
drivers will purchase Personal Injury Protection (PIP) coverage, which
covers the costs of injuries regardless of who is at fault. Depending on
which state you live in and what level of coverage you elect, PIP may
also cover the passengers in your vehicle.
Having a basic understanding of the auto insurance system in your state
is a good place to start. We understand that the coverage options and
laws can be intimidating and our agents are here to help. If you have
any questions at all, please contact your local Acceptance Insurance
agent and let our team help you find the coverage that best fits your