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Definition
In a no-fault auto insurance state, each driver's own Personal Injury Protection (PIP) insurance pays for their medical bills and a portion of lost wages after an accident, regardless of who caused the crash. The 12 no-fault states (FL, MI, NY, NJ, PA, HI, KS, KY, MA, MN, ND, UT) require minimum PIP coverage; Florida requires $10,000 PIP. The purpose is reducing litigation by keeping routine injury claims out of court. To sue the at-fault driver for pain and suffering beyond the PIP threshold, injuries must typically meet a "serious injury" statutory standard — permanent disability, significant disfigurement, or death. No-fault states tend to have higher premiums because PIP pays regardless of fault.
Also Known As
PIP state
personal injury protection state
no-fault insurance system
Used in Context
- Florida's no-fault system required the injured driver's own PIP policy to pay the first $10,000 in medical bills — even though the other driver was clearly at fault — before any liability claim was filed.
- Michigan has the most expansive no-fault system in the US, providing unlimited lifetime medical benefits for auto accident injuries — which also explains why Michigan has the highest average auto insurance premiums nationally.
- After a serious accident in New York, the victim's attorney argued the injuries met the "serious injury" threshold under NY Insurance Law §5102(d), allowing them to step outside the no-fault system and sue for pain and suffering.
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