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What States have No Fault Auto Insurance Laws?

No fault car insurance is a popular term in the car insurance industry but less than 25% of States actually  have no-fault car insurance laws. The purpose of no-fault car insurance laws are to avoid determination of guilt (who was at-fault) in order to expedite claims handling, reduce the amount of car accident litigation and lower car insurance costs for consumers however in recent years we have seen more states revert back to traditional tort laws for no logical reason.

What States operate under No-fault Car Insurance Laws?

“In America there are only 13 States who currently operate under no-fault car insurance laws – 3 of which drivers actually have an option to choose between no-fault coverage and traditional law at the time a policy is issued”

The States which have no-fault auto insurance laws currently in place are:

  • New York
  • Massachusetts
  • Florida
  • Hawaii
  • Kansas
  • Michigan
  • Minnesota
  • North Dakota
  • Utah
  • Puerto Rico

The States where Drivers have a No-Fault Car Insurance option at the time a policy is purchased are:

  • Kentucky
  • New Jersey
  • Pennsylvania

Can I purchase No-Fault Auto Insurance Coverage?

For drivers in the 10 states above without optional no-fault car insurance coverage the answer is NO since this is not a type of insurance but simply a set of  State laws which govern car accidents and the way fault is automatically determined. However in Kentucky, New Jersey and Pennsylvania the answer is YES since drivers are given an option to purchase coverage under either (a) no-fault car insurance laws or (b) the traditional tort system.

Can I be personally liable for a car accident with No Fault Car Insurance?

No-fault car insurance was not designed to protect drivers from all liability but to simplify the claims handling process and number of nuisance lawsuits resulting from minor injuries. With this purpose in mind you can not be held liable for minor accidents caused by common driver mistakes as long the extent of damages fall within the limits of your coverage. This is why understanding car insurance is critical as most state minimum requirements offer only limited levels of policy coverage and if damages should exceed how much insurance you have then yes, it’s very possible to be personally liable for the rest.

“If you drive without car insurance its even worse as you can be personally liable for ALL damages and subject to heavy fines and penalties by the State”

No-fault car insurance is very useful for minimizing litigation and handling claims faster but by no means is it another term for “you are covered no matter what happens”.  Driving with excessive speed, using extreme negligence or even not wearing your seatbelt are all reasons for a car accident attorney to file suit or an insurance company to deny a claim. Be responsible and understand the terms of your auto insurance before operating any vehicle.

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