No-Fault Insurance
/noh-FAWLT/
A system where your own insurer pays your claims regardless of fault.
Definition
In no-fault states, your own insurance pays for your injuries regardless of who caused the accident. This limits lawsuits and speeds up claim payments. About 12 states have some form of no-fault insurance. It doesn't mean no one is at fault—it means your insurer pays first.
Example
In Michigan's no-fault system, both drivers' own PIP coverage paid their respective medical bills.
More Auto Insurance Terms
Insurance that pays for damage or injuries you cause to others.
Coverage for injuries you cause to others in an accident.
Coverage for damage you cause to others' property.
Insurance that pays to repair your car after an accident.
Insurance for non-collision damage like theft or weather.
Protection if you're hit by an uninsured driver.
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