No-fault insurance.
In plain English
No-fault insurance is an auto system used in some states where, after a crash, each driver's own policy pays their medical bills and certain losses regardless of who was at fault. It runs through a coverage called personal injury protection, or PIP. The goal is faster payment and fewer lawsuits over who caused minor injuries. In exchange, no-fault states limit when you can sue the other driver for pain and suffering. It applies to injuries, not vehicle damage, which is still handled by fault-based collision and property coverage.
01Why it matters
Whether you live in a no-fault state changes which policy pays your injury bills and your right to sue, so it directly affects the coverage you need and how a claim plays out.
02The math, step by step
In a no-fault state, you are hurt in a crash the other driver caused. Your own PIP coverage pays your medical bills quickly, rather than waiting to collect from the at-fault driver's insurer.
03What this is NOT
No-fault does NOT mean fault is ignored. It means your own insurer pays your injury costs regardless of fault; fault still matters for vehicle damage and for serious-injury lawsuits.
04Receipts
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