What Is a No-Fault Accident?
A no-fault accident is when a crash occurs and both drivers cover expenses, no matter who caused it in the first place. They only occur in certain states, but are important to understand for all drivers, as you may face these issues if you travel or move.
What Happens in a No-Fault Accident?
After a no-fault accident, your own insurance steps in to cover medical expenses and lost income, no matter who caused the crash. When it comes to vehicle damage, though, things change.
Depending on your state, repairs may fall to the at-fault driver’s insurer or your own collision coverage. Legal action is generally reserved for serious injuries or costly medical bills.
Who Pays the Deductible in a No-Fault Accident?
If you use your own policy to file a claim, you’ll likely pay your deductible upfront. Since your personal injury protection (PIP) or MedPay coverage handles your medical costs directly, your insurer may cover the rest.
In some cases, you can later be reimbursed through subrogation if your company recovers the amount from the other driver’s insurer.
No-Fault States vs. At-Fault States
How states operate will vary depending on where you live and drive. As this makes a big difference in what happens after a wreck, it’s important for all drivers to understand how it all works:
- In no-fault states, drivers cover their own medical expenses and lost wages, no matter who is to blame for the accident.
- However, in at-fault states, if you cause an accident, you’re going to need to cover the affected party’s injuries and damages through insurance or out of pocket.
- There are also a few choice or hybrid states that give drivers the option to pick between a no-fault or traditional system when setting up their policy.
Knowing which setup your state uses helps you figure out who’s paying after an accident, whether you can take legal action, and what types of coverage, like PIP or uninsured motorist protection, you actually need.
| State | Insurance System Type | Details |
| Alabama | At-Fault | Traditional tort system; fault determines liability. |
| Alaska | At-Fault | Fault-based, with optional PIP add-ons. |
| Arizona | At-Fault | Uses comparative negligence for partial fault. |
| Arkansas | At-Fault (Optional PIP) | Standard fault rules, PIP available but not required. |
| California | At-Fault | Fault-based; drivers can sue for damages. |
| Colorado | At-Fault | Formerly no-fault; switched to a fault system in 2003. |
| Connecticut | At-Fault | Uses comparative negligence rules. |
| Delaware | No-Fault | PIP required; limited lawsuits allowed for serious injuries. |
| Florida | No-Fault | PIP required; lawsuits allowed only for severe injuries. |
| Georgia | At-Fault | Pure tort system; fault-based liability. |
| Hawaii | No-Fault | PIP required; lawsuits allowed only for significant injuries. |
| Idaho | At-Fault | Fault-based; optional MedPay coverage. |
| Illinois | At-Fault | Uses modified comparative negligence (51% rule). |
| Indiana | At-Fault | Fault-based; standard tort liability. |
| Iowa | At-Fault | Traditional fault-based system. |
| Kansas | No-Fault | PIP required; limited right to sue. |
| Kentucky | Choice No-Fault | Drivers may reject no-fault and choose tort coverage. |
| Louisiana | At-Fault | Fault-based; direct action lawsuits allowed. |
| Maine | At-Fault | Traditional fault-based; optional MedPay. |
| Maryland | At-Fault | Uses contributory negligence; PIP optional. |
| Massachusetts | No-Fault | PIP mandatory; lawsuits restricted. |
| Michigan | No-Fault | PIP required; recent reforms allow PIP choice levels. |
| Minnesota | No-Fault | PIP required; limited lawsuit rights. |
| Mississippi | At-Fault | Pure fault-based system. |
| Missouri | At-Fault | Comparative fault; fault determines responsibility. |
| Montana | At-Fault | Fault-based with optional MedPay. |
| Nebraska | At-Fault | Uses a comparative negligence system. |
| Nevada | At-Fault | Fault-based; comparative negligence. |
| New Hampshire | At-Fault | Insurance is not mandatory, but liability still applies. |
| New Jersey | Choice No-Fault | Drivers choose between no-fault or tort coverage. |
| New Mexico | At-Fault | Pure tort system; fault determines payment. |
| New York | No-Fault | PIP required; limited right to sue for serious injury. |
| North Carolina | At-Fault | Contributory negligence; even a small fault can bar claims. |
| North Dakota | No-Fault | PIP required; lawsuits only for major injuries. |
| Ohio | At-Fault | Fault-based; liability insurance required. |
| Oklahoma | At-Fault | Fault-based; comparative negligence system. |
| Oregon | At-Fault (PIP Required) | Fault-based, but requires PIP for all drivers. |
| Pennsylvania | Choice No-Fault | Drivers choose between limited and full tort options. |
| Rhode Island | At-Fault | Comparative fault-based system. |
| South Carolina | At-Fault | Fault-based; uninsured motorist coverage is mandatory. |
| South Dakota | At-Fault | Traditional fault-based system. |
| Tennessee | At-Fault | Fault-based; follows modified comparative fault rules. |
| Texas | At-Fault | Tort system; fault determines liability. |
| Utah | No-Fault | PIP required; lawsuit threshold for serious injuries. |
| Vermont | At-Fault | Fault-based; comparative negligence applies. |
| Virginia | At-Fault | Drivers can opt out of insurance but must pay fees. |
| Washington | At-Fault | Fault-based; PIP optional. |
| West Virginia | At-Fault | Traditional tort system. |
| Wisconsin | At-Fault | Fault-based; comparative negligence. |
| Wyoming | At-Fault | Standard tort system. |
| Washington D.C. | Choice No-Fault | Drivers can choose tort or no-fault coverage. |
Does a No-Fault Accident Affect Insurance Rates?
Even if you weren’t at fault, your car insurance rates can increase, but not always. Insurance companies look at your overall risk profile, not just fault. If your insurer sees a pattern of claims, they may adjust your premiums accordingly.
Here’s what typically happens:
- One no-fault accidents usually mean a minor or no increase.
- Multiple claims, even “no-fault” ones, typically are a higher perceived risk.
- High repair or injury payouts mean a possible premium bump at renewal.
Your Insurance Record
Insurance companies log every claim, even if you weren’t responsible. It shows up on your CLUE report (Comprehensive Loss Underwriting Exchange) and can influence future pricing.
Does a No-Fault Accident Affect Insurance in the Future?
Sometimes. A single no-fault accident likely won’t raise your rates much—but repeated claims, or accidents involving injuries or expensive repairs, might flag you as a higher risk to insurers.
Is Hitting a Deer a No-Fault Accident?
This is tricky. Hitting a deer is generally considered a comprehensive claim, not a collision. It’s not your fault, but it can still count as a claim and may slightly affect your premium.
Is a Parking Lot Accident No-Fault?
Not always. Parking lot accidents are tricky because both parties may share some blame. In most cases, insurers use photos, police reports, or witness statements to determine fault.
Can No One Be at Fault in an Accident?
Rare, but possible. “Acts of nature” like hail, flash floods, or a sudden deer crossing can cause accidents where no driver is technically responsible. These typically fall under comprehensive coverage.
Can You Be Sued for a No-Fault Accident?
In most cases, you can’t sue after a no-fault accident unless your state makes an exception for severe injuries or major property damage. If you live in an at-fault state like Texas, though, you can file a claim or lawsuit against the driver responsible.
For accidents involving serious injuries or unclear liability, it’s smart to talk with a lawyer, as they can help protect your rights and make sure you’re fully compensated for your losses. Just remember to always seek legal advice from a licensed professional.
Finally, if the other driver doesn’t have insurance, that’s where uninsured/underinsured motorist (UM/UIM) coverage comes in. This optional add-on helps pay your expenses when the at-fault driver’s coverage falls short, or doesn’t exist at all.
How to Handle a No-Fault Accident Step-by-Step
- Make sure everyone’s safe and call 911 if anyone’s hurt.
- Exchange contact, license, and insurance details with all drivers involved.
- Take clear photos of the damage, road, and nearby conditions.
- File a police report, even for small fender benders.
- Contact your insurance company as soon as possible.
- Save everything you might need, including estimates, receipts, reports, and claim numbers.
Sources:
Thompson Law Injury Lawyers. Accessed November 2025.
