There are about 12 states that have a no-fault auto insurance system. These states are Florida, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah. No fault insurance means your own auto insurance policy will pay for some or all of your medical bills and lost earnings if you are in a car accident. In most cases, your policy will pay for your damages even if you were not at fault for the accident. Most no-fault auto insurance claims are made through your policy’s personal injury protection plan. This is mandatory coverage in most no-fault states.
In most claims in a no-fault state, you will file your auto accident claim with your own insurance company. However, there are exceptions. You cannot make a pain and suffering claim against your own policy. You can only go after this type of compensation from the at fault driver, IF your medical bills rise to a certain level, or your injury is determined to be serious. In these limited cases, you may be allowed to go outside the no fault rules for your state.
For instance, your state laws may not allow a personal injury claim against the other driver until your medical costs go over $3000, or if you have a serious injury such as a broken bone. The purpose of these rules is to try to streamline auto accident cases, particularly small claims.
For instance, if you are in a car accident and have $7500 in bills and the other driver is at fault, you may be able to go outside the no fault system, if your injury is ‘serious’ according to state law. This might include a broken bone, disfigurement, permanent limitation or full disability for 90 days. This needs to be determined by a doctor.