Auto insurance provision, instituted state by state, that allows policyholders to recoup financial losses from their own insurance company following an accident, no matter who was at fault.
Under no-fault insurance laws, the insurer pays the insured first-party benefits—but restricts the right to sue for both injury and pain and suffering, to certain conditions and dollar limits. Known as a threshold, these conditions depend on injury severity and are limited in amount.
No-fault auto insurance works to lower premium costs, while providing quick payment for injuries. 12 states currently have no-fault insurance laws, including Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah.