Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 24, 2020

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Here's what you need to know...

  • Most states require a minimum amount of liability coverage
  • Liability covers the driver, passengers, and property
  • With no-fault insurance, if you are in an accident, you file a claim with your own insurance company

Certain states in the US are considered “no fault” states for auto insurance. This means that several states have laws that specify minimum coverage no fault policies are required by drivers in order to be legal on the road.

There are car insurance companies in no fault states that provide only no-fault policies to their policyholders in those areas. If you live in a no-fault state, chances are your auto insurance policy is a no fault only policy.

Local and regional companies that sell only auto insurance in no fault areas would be the insurance companies for these specific needs.

Our FREE auto insurance comparison tool can meet your needs when you enter your zip code above!

What is no-fault insurance?

No-fault auto insurance is insurance that covers the policyholder in an accident. Cheap no-fault auto insurance is more or less the opposite concept of liability insurance.

With a liability insurance policy, your policy covers the other driver, passengers, and property.

With no-fault insurance, your own policy covers you and your property. However, the benefits provided by no-fault insurance are limited.

With no-fault insurance, if you are in an accident, you file a claim with your own insurance company.

With liability insurance, the other driver, passengers or owner of the damaged property would file a claim against your insurance company.

Dealing with auto insurance companies for a claim can be quite different depending on the type of auto insurance you have.

Certain states have implemented “no-fault” laws to limit the ability of accident victims to sue in court. No fault states also allow insurance companies to put limits on the amounts they will pay on claims for accidents.

The basis for these laws is the notion that no-fault insurance policies keep insurance costs down and limit tort actions and court cases. Generally, premiums are less expensive for no-fault insurance.

Because premiums are lower, more people are able to afford insurance in these states.

No-fault states include:

In no-fault states, drivers are required to carry a minimum coverage amount in order to legally drive on the roads.

However, many opponents to no-fault laws argue that the laws in no-fault states do not provide any incentive for drivers to drive well.

Because most everyone is covered by their own policy, poor drivers are allowed to continue to drive poorly, with no incentive to learn better driving habits and behaviors.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Are there differences in no-fault laws in various states?

States do differ in terms of what they define in their “no-fault” laws. For example, some states are “pure” no-fault states. This means that, in these states, drivers are prohibited from suing other drivers for damages incurred due to an accident.

Each driver’s own insurance pays the damages to the policyholder.

Other states implement “modified” no-fault laws. In these “modified” states, there are conditions where one driver may sue another.

In a few states, namely New Jersey and Pennsylvania, drivers may choose between a “pure” or “modified” no fault policy.

If you select a “pure” no-fault policy, you do not retain the ability to sue. If you select a “modified” no-fault policy, or a tort policy, you retain your right to sue. Most states, however, follow the “modified” no-fault model.

A great deal of information about car insurance laws is available on the Web. Research the laws in your state to find out if you live in an area with no-fault laws, and what those laws mean to you.

How do I find a no-fault only insurance company?

Finding a no-fault only insurance company is simple if you live in a no-fault state. Use an online auto insurance comparison tool.

The first data you enter on an auto insurance comparison tool is your zip code.

If you live in a no-fault state, when you specify your zip code, the list of car insurance companies that is returned in the search results will all offer no-fault insurance coverage.

If you want to find a company that only sells no fault policies, just research individual companies that are returned based on your zip code.

By using an online comparison tool, you will be able to specify the type of policy you are seeking and compare the rates of several companies at once. You will most likely find several car insurance companies that sell only no-fault policies in your area.

Comparison tools allow you to compare coverage offered by several car insurance companies at one time. Compare policies, rates, discounts and other factors that will affect the amount of your payments, or “premiums.”

By researching companies that provide coverage for drivers in your area, you will be able to find the auto insurance policy that is right for you.

Whether you live in a no-fault state, or in a state that requires drivers to carry a minimum amount of liability coverage, a comparison tool that finds companies that sell policies in your area is the quickest and easiest way to begin the process.

Enter your zip code into our FREE auto insurance comparison tool now to compare free quotes!

References:

  1. https://www.statefarm.com/insurance/auto/coverage-options/liability-coverage
  2. https://www.colorado.gov/pacific/sites/default/files/DR2337.pdf
  3. https://en.wikipedia.org/wiki/Massachusetts
  4. http://traffic.findlaw.com/traffic-tickets/new-york-traffic-laws.html
  5. https://www.acceptanceinsurance.com/our-products/auto-insurance/high-risk-auto-insurance/
  6. http://www.cbs.state.or.us/ins/consumer/consumer-tips/topten-auto-myths.pdf