No-Fault States List: Which States Have No-Fault Car Insurance and What It Means for You
Part of our guide to minimum car insurance by state.
In a no-fault state, your own insurer pays your injury costs after a crash, up to your personal injury protection (PIP) limit, no matter who caused it. In exchange, your right to sue the other driver for pain and suffering is limited until your injury crosses a legal threshold. Twelve states and Puerto Rico work this way, according to Triple-I. Below is the list, how the thresholds differ, which states let you choose, and which states require PIP without limiting lawsuits.
Key takeaways
- Triple-I lists twelve true no-fault states plus Puerto Rico: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
- Five use a verbal threshold (Florida, Michigan, New Jersey, New York, Pennsylvania). The other seven use a monetary threshold.
- New Jersey, Pennsylvania and Kentucky are "choice" states, where you can reject the lawsuit limit and keep the full right to sue.
- PIP minimums vary widely: $8,000 in Massachusetts, $10,000 in Florida and Hawaii, $15,000 in New Jersey's Standard policy, $50,000 in New York, and a menu of levels in Michigan.
What is a no-fault state?
Triple-I defines it this way: "No-fault auto insurance laws require every driver to file a claim with their own insurance company after an accident, regardless of who was at fault. In states with no-fault laws, all drivers are required to purchase personal injury protection (PIP)."
The strict meaning has two parts, and both must be present. Your own insurer pays first-party benefits, and your right to sue is restricted. Triple-I says lawsuits for severe injuries and pain and suffering are allowed only when a case meets a threshold, which can be:
- Verbal: the injury must meet a description in the statute, such as death or significant disfigurement.
- Monetary: medical bills must pass a dollar amount.
Triple-I notes that insurers generally favor verbal thresholds, because a dollar target can encourage inflated medical claims and erodes with inflation unless the law adjusts it.
Which states are no-fault states?
| State | Lawsuit threshold | Choice no-fault? | PIP minimum (state source) |
|---|---|---|---|
| Florida | Verbal | No | $10,000 (FLHSMV) |
| Hawaii | Monetary | No | $10,000 (Hawaii Insurance Division) |
| Kansas | Monetary | No | Check the Kansas Insurance Department |
| Kentucky | Monetary | Yes | Check the Kentucky Department of Insurance |
| Massachusetts | Monetary | No | $8,000 per person (Massachusetts Division of Insurance) |
| Michigan | Verbal | No | Six PIP medical levels, from unlimited to opt-out (Michigan DIFS) |
| Minnesota | Monetary | No | Check the Minnesota Commerce Department |
| New Jersey | Verbal | Yes | $15,000 per person or accident, Standard policy (NJ DOBI) |
| New York | Verbal | No | $50,000 (NY DFS) |
| North Dakota | Monetary | No | Check the North Dakota Insurance Department |
| Pennsylvania | Verbal | Yes | Check the Pennsylvania Insurance Department |
| Utah | Monetary | No | Check the Utah Insurance Department |
| Puerto Rico | Monetary | No | Check the Puerto Rico Office of the Insurance Commissioner |
Threshold types and choice status are from Triple-I's background paper and its October 2021 table of state auto liability laws. PIP minimums are listed only where we confirmed them on a state page on October 1, 2026; for the others, the state agency named is the place to check.
How do choice no-fault states work?
In New Jersey, Pennsylvania and Kentucky, you pick between a no-fault policy with a lawsuit threshold and a traditional policy that keeps your full right to sue. Triple-I says New Jersey and Pennsylvania use a verbal threshold for the no-fault option, and Kentucky uses a monetary one.
The default matters. Triple-I reports that New Jersey presumes you accept the lawsuit threshold unless you reject it, while Pennsylvania presumes the opposite. As a result, more than 85% of New Jersey policyholders have policies restricting lawsuits, while fewer than 50% do in Pennsylvania.
New Jersey's Department of Banking and Insurance describes the two options in plain terms. Under the "No Limitation on Lawsuit" option, "you retain the right to sue the person who caused an auto accident for pain and suffering for any injury." Under the "Limitation on Lawsuit" option, you agree not to sue for pain and suffering unless you sustain one of the listed permanent injuries. The department notes that choosing the limitation "does not affect your ability to sue for economic damages such as medical expenses and lost wages."
The lawsuit option changes your rights. In a choice state, the limited option gives up your ability to sue for pain and suffering after an injury that does not meet the threshold. Read the selection form before you sign it, and know which option you already have.
Which states require PIP but are not no-fault?
Some states add first-party benefits on top of the traditional fault system without limiting lawsuits. Triple-I calls these "add-on" states. In them, "drivers receive compensation from their own insurance company as they do in no-fault states, but there are no restrictions on lawsuits."
| Add-on state | PIP compulsory or optional |
|---|---|
| Arkansas | Compulsory |
| Delaware | Compulsory |
| Maryland | Compulsory |
| Oregon | Compulsory |
| Texas | Compulsory |
| New Hampshire | Optional |
| South Dakota | Optional |
| Virginia | Optional |
| Washington | Optional |
| Wisconsin | Optional |
Source: Triple-I table of state auto insurance laws governing liability coverage, as of October 2021. Triple-I treats the District of Columbia separately: drivers can choose no-fault benefits, but after a crash have 60 days to decide whether to take them or sue, so in effect lawsuits are not restricted.
All other states use a traditional tort system, where the at-fault driver's liability insurance pays injured people and there are no restrictions on lawsuits. How PIP compares with optional medical payments coverage is explained in MedPay vs PIP.
Why does no-fault matter for your premium?
Triple-I explains that no-fault was designed to lower costs by taking small injury claims out of court. It also says that "in states with higher than average PIP benefits," fraud by dishonest providers has pushed costs up, and that weak monetary thresholds can leave almost as many cases in court as a tort system. Michigan, where unlimited PIP medical coverage is still the default, shows how much PIP design can drive price. See why Michigan car insurance is expensive.
FAQ
How many no-fault states are there? Twelve, plus Puerto Rico, according to Triple-I.
Is California a no-fault state? No. California is not on Triple-I's no-fault or add-on lists. It uses a traditional fault-based system.
Is Pennsylvania a no-fault state? Yes, as a choice state. Drivers can accept a verbal lawsuit threshold or keep full tort rights. Triple-I says Pennsylvania assumes full tort unless you request the threshold.
Does no-fault mean nobody is found at fault? No. Fault is still determined. It decides who pays for property damage and whether a lawsuit above the threshold succeeds, but your own PIP pays your injury costs first regardless.
Does PIP cover damage to my car? No. PIP covers injury-related costs. Damage to your car is handled by collision coverage or the at-fault driver's property damage liability.
Sources
- Insurance Information Institute, "Background on: No-fault auto insurance," https://www.iii.org/article/background-on-no-fault-auto-insurance (accessed October 1, 2026)
- Insurance Information Institute, "State Auto Insurance Laws Governing Liability Coverage" (table archive, as of October 2021), https://www.iii.org/table-archive/21328 (accessed October 1, 2026)
- Florida Department of Highway Safety and Motor Vehicles, "Florida Insurance Requirements," https://www.flhsmv.gov/insurance/ (accessed October 1, 2026)
- Hawaii Insurance Division, "FAQ: Auto Insurance Minimum Limits," https://cca.hawaii.gov/wp-content/uploads/2026/01/Auto-Minimum-Limits-FAQs.pdf (accessed October 1, 2026)
- Massachusetts Division of Insurance, "Filing Guidance Notice 2025-A," https://www.mass.gov/doc/2025-a-new-motor-vehicle-mandatory-coverage-limits/download (accessed October 1, 2026)
- Michigan DIFS, "Choosing PIP Medical Coverage," https://www.michigan.gov/autoinsurance/choosing-coverage/choosing-pip-med-coverage (accessed October 1, 2026)
- New Jersey DOBI, "Standard Auto Insurance Policy," https://www.nj.gov/dobi/division_consumers/insurance/standardpolicy.html (accessed October 1, 2026)
- New York DFS, "How much auto insurance must I carry?," https://www.dfs.ny.gov/faqs/consumer-auto/how-much-auto-insurance-must-i-carry (accessed October 1, 2026)
This list reflects Triple-I and state sources read on October 1, 2026. No-fault rules are set by state law and change. It is not legal advice.