At-Fault vs No-Fault States.

In plain English

Whether you live in an at-fault or no-fault state changes who pays after a crash. In an at-fault (or tort) state, the driver responsible for the crash, through their liability insurance, pays for the other people's injuries and damage. In a no-fault state, each driver's own policy pays their own medical bills first, through coverage called personal injury protection (PIP), regardless of who caused it, and the ability to sue is usually limited. No-fault rules generally apply to injuries, not to vehicle damage, which still follows fault.

01Why it matters

Your state's system decides whose insurance pays your medical bills and whether you can sue the other driver, which directly affects how fast you get paid and what coverage you actually need.

02The math, step by step

In a no-fault state, your own PIP coverage pays your medical bills after a crash even if the other driver was clearly to blame, up to your PIP limit. In an at-fault state, you would instead pursue the at-fault driver's liability insurance. Which system applies, and the PIP limits and lawsuit thresholds, vary by state, so check your state insurance department.

03What this is NOT

04Receipts

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