Asked by Justin from Detroit, MI
“But in its strictest form no-fault applies only to state laws that both provide for the payment of no-fault first-party benefits and restrict the right to sue, the so-called ‘limited tort’ option. The first party (policyholder) benefit coverage is known as personal injury protection (PIP).”
No-fault insurance laws were created to minimize costly and frivolous litigation and to speed up the claims process. (Breaking news: We Americans love to sue each other.)
States with no-fault insurance laws:
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