What is no-fault insurance?
No-fault insurance is a car insurance system in which your own insurer pays your injury costs after a crash without first deciding who was at fault, instead of you suing the other driver. It covers injuries, not your car, and it usually limits when you can sue for pain and suffering.
Last checked November 9, 2026 · Official sources (5)
How does a no-fault claim work? An example
Example: you are rear-ended at a light in Florida. Your ER visit and follow-up cost $6,000. Even though the other driver clearly caused the crash, your first claim goes to your own insurer under your personal injury protection. Florida PIP pays 80 percent of necessary and reasonable medical costs, up to $10,000. So it pays $4,800 of the $6,000.
Your bumper is a different story. In a no-fault state like Hawaii, the driver at fault is still responsible for damage to your vehicle and property. You claim the repair against the other driver’s insurer.
Why does no-fault matter to someone who was hurt?
It decides where you send your first injury claim and whether you can sue. No-fault gets bills paid faster, but the benefit has a ceiling, and the right to sue for pain and suffering is limited to more serious injuries. Hawaii’s insurance division puts it simply: you cannot sue or be sued unless there are serious injuries.
If your injury turns out worse than it first looked, the threshold can matter a great deal. Keep your medical records complete from the first visit.
Is no-fault the same in every no-fault state?
No. NAIC’s glossary notes that no fault is defined by the state concerned. Benefit amounts, lawsuit thresholds and options differ.
| State | What its official source says |
|---|---|
| Florida | PIP pays 80 percent of necessary medical costs up to $10,000, no matter who caused the crash. |
| Hawaii | No suit unless there are serious injuries. The at-fault driver still pays for vehicle and property damage. |
For the full list of no-fault states, each one’s PIP amount, and whether Arizona and Texas are on it, see our guide to which states are no-fault.
No-fault vs. at-fault (tort) states
In an at-fault state, the driver who caused the crash, through that driver’s liability insurance, pays for your injuries, and you can sue for the full value. In a no-fault state, your own insurer pays first, and suing is limited. Some states mix the two, adding PIP while fault still decides lawsuits.
Questions
Does no-fault mean nobody is blamed?
No. Fault still matters for car damage and for lawsuits over serious injuries. No-fault only changes who pays your injury costs first.
Will my rates go up after a no-fault claim if I was not at fault?
That depends on your state’s rating rules and your insurer. Ask your insurer or state insurance department.
Can I sue in a no-fault state?
Yes, but only when your injury meets the state’s threshold. Hawaii, for example, requires serious injuries.
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See if I’m owed moneySources (5)
- NAIC, checked 2026-11-09. “meaning there is no need to determine who is at fault to receive payment for injury claims – parties seek recovery from their own insurers instead of bringing a lawsuit.”
- Florida Department of Highway Safety and Motor Vehicles, checked 2026-11-09. “PIP covers 80 percent of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, no matter who caused the crash.”
- Hawaii Department of Commerce and Consumer Affairs, checked 2026-11-09. “And you cannot sue or be sued unless there are serious injuries.”
- Hawaii Department of Commerce and Consumer Affairs, checked 2026-11-09. “the driver-at-fault in an accident is responsible for damages to vehicle and property.”
- NAIC Glossary of Insurance Terms, checked 2026-11-09. “No Fault is defined by the state concerned.”