Insurance

What is No-Fault Insurance (PIP)?

A system in which auto-accident victims recover medical costs from their own insurer (Personal Injury Protection) regardless of fault, with limits on suing for non-economic damages.

Definition

No-fault states require drivers to carry Personal Injury Protection (PIP) coverage. After an accident, each driver's PIP pays their own medical and lost-wage costs up to coverage limits. To sue for non-economic damages (pain and suffering), the plaintiff typically must meet a serious-injury threshold (verbal threshold in NJ; § 5102(d) in NY).

How it applies in personal injury cases

Florida, New York, New Jersey, and ~10 other states are no-fault. Cases are filtered by the threshold — soft-tissue-only cases without surgical intervention often can't be litigated for pain and suffering. 2023 reforms in Florida tightened thresholds further.

Related terms

UM/UIM Coverage

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage that pays plaintiff's damages when the at-fault driver lacks adequate insurance.

Policy Limits

The maximum amount an insurance company will pay under a specific policy for a covered loss.

This entry is a plain-English reference for personal injury practice. It is not legal advice — consult a licensed attorney in your jurisdiction for the law applicable to your case.

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