No fault insurance in general is a term used
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In a pure no fault system, drivers would be completely covered by their own policy, and
would be barred from suing another driver for damages.
If you have an
accident, under pure no fault laws, your auto insurance company will pay for
your damages (up to your policy limits), regardless of who was at fault.
Other drivers involved would be covered by their
auto insurance.
Since no state is pure no fault, drivers can be held financially responsible
for
the cost of injuries they cause in certain circumstances.
States actually use parts of both
the no fault system and the standard liability system
(under which you're financially
responsible for the cost of damages you cause).
Some no fault states allow injured parties to sue if their injuries meet certain standard
for severity, while others allow it when total costs reach a certain dollar level.
That's
why liability insurance
is still so important,
and why and every no fault state requires it.
Twelve (12) states and Puerto Rico currently have some sort
of no-fault auto
insurance laws.
Five (5) states
have verbal thresholds.
Seven (7) states — use a monetary threshold.
Three (3) states
have a "choice" no-fault law.
In New Jersey, Pennsylvania and Kentucky,
motorists may reject the lawsuit threshold and
retain the right to sue for any
auto-related injury.
Colorado’s system reverted back to the tort liability system in July 2003
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