Auto Insurance

No-Fault Insurance

An auto insurance system where each driver's own insurance pays their injuries regardless of fault.

Last reviewed: May 2026 · Editorial methodology

Definition

A system where each driver's insurance pays for their own injuries regardless of who caused the accident. Currently required in 12 states including Michigan, Florida, and New York. No-fault laws include Personal Injury Protection (PIP) requirements and limit when you can sue another driver for non-economic damages. Three states (Kentucky, New Jersey, Pennsylvania) offer 'choice' no-fault where drivers can opt out.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

PIP (Personal Injury Protection)Auto coverage that pays your medical bills and lost wages after an accident regardless of fault.Uninsured/Underinsured Motorist (UM/UIM)Auto coverage that pays your injuries and damage when the at-fault driver has no/inadequate insurance.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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