What Is No-Fault Insurance?

No-fault insurance covers medical expenses for victims of auto accidents, regardless of blame.

Personal Injury Protection (PIP) and First Party Benefits are both types of no-fault insurance.

No-fault insurance has one purpose:

To provide victims of auto accidents access to medical care, without having to worry about the bills.*

No-fault insurance provides coverage for medical treatment from hospitals and other medical providers.

In some states, it can also include reimbursement for lost wages and costs to hire someone to take care of your home or family.

No-fault insurance covers:

  1. You, if you have a personal auto policy;
  2. Any family member who lives in your household; and
  3. Passengers in your vehicle, depending on the state.

It has exclusions, which you can find in your personal auto policy.

No-fault insurance is not available in all states

Whether an auto insurance policy can include no-fault medical benefits depends on your state.

In states without no-fault insurance, auto insurance policies may include optional Medical Payments (MedPay) coverage.

Choosing a coverage limit

Most no-fault states require drivers to maintain a minimum amount of no-fault medical coverage. You might be able to purchase higher limits than required by state law.

When choosing your coverage limits, consider:

  • The cost of medical care in your state;
  • The cost of a hospital stay, rehabilitation, and further treatment;
  • If available in your state, your lost wages if you can't work while you recover; and
  • If available in your state, the cost to hire someone to care for your house and family, if needed.

PIP has a deductible and co-payment.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.

* Medical bills for a covered auto accident are paid up to a policyholder's chosen limit.