Generally, no-fault insurance requires you to file a claim with your own insurance company, regardless of who caused them. In the world of auto insurance, it is coverage that pays for the expenses related to injuries that occur if you are injured in an accident, regardless of the cause of the accident. It can pay for medical bills, lost wages, child care and more, depending on where you live. No-fault insurance is required in 12 states, while a few other states allow you to include it as an optional add-on or waive it entirely.

No-fault insurance covers car-related injuries

If you are injured in a car accident, possible medical expenses will be covered by your no-fault insurance, also known as personal injury protection or PIP. It will cover everyone else in your car, as well as when you are a passenger in someone else’s. Depending on the state, no-fault insurance may also cover:

• Lost wages if you cannot work because of the injury.
• Substitute services, such as housekeeping or childcare.
• Funeral expenses if an injury results in death.
• The loss of the survivor, or a small death benefit, if the accident results in your death and you leave survivors in your charge.

” MORE: What does auto insurance cover?

No-fault insurance is required in 12 states

There are 21 states, plus Washington, DC, that offer no-fault insurance. Twelve of those states require drivers to carry a minimum amount. Use the map below to see if your state is one of them.

States that require no-fault insurance have different minimum requirements. Use the table below to see what the minimum no-fault insurance requirements are for your state.

No-fault insurance payment varies by state

Paying for your no-fault insurance coverage is state dependent, so take the time to familiarize yourself with your state’s no-fault insurance laws. In Florida, no-fault insurance covers only 80% of your accident-related medical expenses, up to a maximum of $ 10,000. Meanwhile, no-fault insurance in New York will cover up to $ 50,000 for your injury bills and those of your passengers, but will only pay 80% of any lost wages.

Michigan no-fault insurance is unique. Drivers choose their own limit of no-fault insurance coverage from a number of options, including:

• Unlimited coverage.
• Up to $ 500,000 in coverage.
• Up to $ 250,000 in coverage.
• Up to $ 50,000 in coverage if you’re enrolled in Medicaid and another member of your household has insurance that will cover injuries from a car accident.
• Turn off PIP medical coverage if you have Medicare and another member of your household has auto insurance or a health insurance policy that pays for injuries from car accidents.

” MORE: Minimum auto insurance requirements by state

Can you sue with no-fault insurance?

With the exception of Delaware, all states that require no-fault insurance operate under “no-fault” laws. In these “no-fault” states, you cannot sue a responsible driver after an accident unless your injury is very serious, such as loss of a limb or paralysis, or unless your medical expenses related to the accident. injury exceed the state’s minimum dollar amount. required to continue.