A classic “no-fault” auto insurance system, used in around ten states, requires accident victims to first (and occasionally only) seek compensation from their own auto insurance.
Remember that in the following states, you cannot receive “pain and suffering” damages for the accident and your injuries unless the circumstances of your vehicle accident claim allow you to “step outside” of no-fault under the applicable threshold:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New York
- North Dakota, and
- Utah
A “hybrid” or “choice no-fault” system is used in New Jersey, Pennsylvania, and the District of Columbia, which typically means that when you buy a car insurance policy, you can choose whether you want to be covered under no-fault insurance or the more conventional liability-based insurance system (and you may have the option to continue with no-fault before filing a claim after an accident).
There are no restrictions on a claimant’s options for holding another driver or party financially liable for damages following an accident, even if some jurisdictions (such as Delaware and Oregon) require no-fault coverage as an add-on to any auto insurance policy.
(Note: While most no-fault insurance policies allow you to file claims for medical costs, lost wages, and other financial losses up to your no-fault policy limits, claims for vehicle damage are typically excluded from the no-fault system and must be made under the terms of the collision and comprehensive insurance policies.)
