What Is No Fault Insurance?
With so many
car insurance coverages available, it may be difficult to understand what each covers and how they differ. If you’re looking for a no fault insurance definition, we’re here to help.
Your no fault auto insurance is also known as
personal injury protection (PIP) coverage and helps pay the costs of medical expenses for you and your passengers after a car accident. These benefits apply to anyone in your vehicle, regardless of who is at fault for the collision.
One of the biggest differences between PIP coverage and other types of car insurance is who’s responsible for damages. For example, liability coverage only pays for claims after someone is at fault for an accident. PIP claims are typically covered whether or not you’re at fault. So, if you rear end another car and your passenger is injured, PIP can help pay for their medical costs. PIP will also help pay for your medical treatment if someone backs into your car and injures you.
Keep in mind that no fault insurance isn’t available in all states, so you’ll have to check if you can get it where you live. Some states also don’t require this coverage. For help understanding what’s required in your area, call The Hartford’s representatives at
888-413-8970.
What Does No Fault Car Insurance Cover?
Have you been asking yourself “how does no fault insurance work?” If so, the answer is simple. If you’re in an auto accident and you or your passengers get hurt, PIP insurance can help cover your:
- Medical bills
- Health insurance deductibles
- Lost wages if your injury prevents you or your passengers from working
- Essential services including child care, cleaning or grocery shopping
- Funeral expenses if one of your passengers loses their life in a car accident
Don’t forget PIP insurance doesn’t cover every claim. For example, PIP doesn’t pay for property damage. So, if you drive into someone’s fence or dent another car in an accident, your PIP coverage won’t help you pay for the damage. Instead, you’ll need
property damage liability insurance to help cover this kind of claim.
On top of this, if you damage your own car in an accident, you’ll need
collision insurance to help pay your repairs. Without these policies, you may have to pay costs out-of-pocket. That’s why it’s a good idea to create a complete protection plan by adding other helpful
auto insurance coverage types to your policy.
Is No Fault Insurance Optional?
Every state has different laws and expectations for no fault insurance.
No fault insurance states that require coverage include:
This insurance protection is optional if you live in:
The majority of U.S. states don’t offer no fault insurance. So, before you buy this coverage, check to see what your state requires. You can also call The Hartford’s representatives at
888-413-8970 if you need help understanding your state’s at fault laws and fault systems.
No Fault or PIP Insurance Coverage Limits
Like other insurance coverages, you’ll want to pick a coverage limit for your no fault policy that fits your needs. This limit determines how much your insurance company will pay for claims if you’re in a car accident. It also helps determine your insurance premiums for this coverage.
To help estimate how much your coverage limit should be, look at your health insurance, what it covers and how much your deductibles are. You’ll also want to consider how other expenses, like lost income or essential services, will impact your family if you’re hurt in an accident. It’s also important to keep in mind that states often require minimum amounts for PIP insurance.
How Does No Fault Insurance Work?
If you’re in an accident and have no fault insurance, you can file a PIP claim to cover medical costs. If your insurer helps cover your claims, you’ll receive reimbursement for what you’ve paid.
So, if you get into an accident with another car but have no fault insurance, it’ll help pay for injuries you and your passengers have endured. If you get in an accident in a state without no fault insurance laws and you’re injured, you can:
No Fault Insurance by State
It’s important that you understand what your
state’s car insurance laws are. Most states don’t require drivers to carry PIP insurance. Others specify a minimum amount of coverage. If you're not sure if you need PIP insurance, you can check with your state’s motor vehicle agency or insurance department.
