What is no-fault auto insurance?



What is no-fault auto insurance?

The financial term of the day is: "no-fault auto insurance."

In states with no-fault auto insurance, your insurance compensates you when you're injured in a crash, regardless of whether it was you or another driver who was responsible for the accident. Typically, these state laws also limit your ability to sue the other driver or that person's insurance company. The trade group Insurance Information Institute says a dozen states and Puerto Rico have no-fault insurance laws.

With no-fault auto insurance, your insurance company will cover you if you're hurt in an accident, even if it was the other guy's fault. But it may also be tricky to sue him if your policy doesn't completely cover your medical bills.

To shop for insurance to fit your needs, visit the Insurance section at

Find the Lowest 2015 Insurance Rates

We've partnered with the nation's top carriers to provide free insurance quotes. Compare multiple quotes & save!


Show Bankrate's community sharing policy

Connect with us