No Fault: What Does It Mean?

“No Fault” is a legal concept in which you make your claim against your insurance in the case of an accident, no matter who is at fault. Even if the other person was technically at fault, you collect from your own insurance.

This can be both good and bad. On the good side, it generally means a quicker claims process for smaller accidents and the insurers claim it allows them to charge lower rates. And to some extent, the “uninsured driver” coverage that you would carry in another state isn’t needed since the smaller/real damages are covered by your insurance anyway. On the bad side, there’s a mish mash of laws and rules regarding the damages for which you don’t get a receipt, such as pain and suffering, loss of companionship, and even wrongful death. Your ability to recover damages for those injuries/losses can be limited and much more confusing in a state with no-fault laws.