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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 Has Two Parts:

  1. Coverage for medical treatment from hospitals and other medical providers
  2. Reimbursement for other expenses like 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. Any passenger in your car who doesn't have coverage through another policy.

Usually, no-fault insurance does not cover people using a vehicle for business or transporting people for hire. It has other exclusions, too, which you can find in your personal auto policy.

Choosing a Coverage Limit

Most no-fault states require drivers to maintain a minimum amount of no-fault medical coverage. You can 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;
  • Your lost wages if you can't work while you recover; and
  • The cost to hire someone to care for your house and family, if needed.

PIP has a deductible and co-payment.

The content on this page is intended for informational purposes only. It is not an insurance policy, and does not, in any way, replace or modify the definitions and information contained in individual insurance policies. Terms and coverage availability may vary by state, and exclusions and deductibles may apply. Discounts also vary by state and may not be applied to all policy coverages. Coverage for an accident or loss is subject to the terms and conditions of the insurance policy applicable to a particular claim.

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