The no-fault insurance system is utilized in a handful of states with the goal of making it easier for individuals to get medical care regardless of fault, lowering the costs of auto insurance, and limiting the number of lawsuits. It also removes the ability to obtain payment for non-economic damages, such as pain and suffering. Vehicle owners must carry insurance with a minimum of $25,000 per person and $65,000 per accident for bodily injury, along with $3000 in personal injury protection coverage (PIP). Property damage minimum liability coverage is $15,000 per accident.
However, opponents of the no-fault insurance system argue that it incentivizes insurers to raise premiums to offset the cost of providing coverage for injured parties that the at-fault driver would have otherwise covered. It may also encourage reckless driving behavior because drivers know any accident they cause will just be covered, regardless of who was responsible. Finally, people who have suffered an accident that wasn't their fault may feel frustrated and deprived of justice when a negligent driver isn't subjected to more severe financial consequences
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Even so, since it's the law, injured parties have to work within the boundaries of the system. Currently, (PIP) insurance pays for medical care, lost wages, and lost household services regardless of fault. However, the minimum is set at $3000, which won't help much if you've been seriously injured and only carry the basic requirements for insurance. Higher PIP coverage is available but at additional expense. Property damage, however, is not subject to the no-fault system. When it comes to getting your vehicle repaired or replaced, the at-fault party assumes the responsibility.