Personal Injury Protection (PIP)

In no-fault states, personal injury (PIP) insurance is often mandatory. This policy covers costs incurred as the result of an accident but without having to determine fault. A PIP policy typically covers smaller car insurance claims.

However, no-fault does not mean that a driver cannot be held responsible for an accident. Many no-fault states still require liability insurance (that is bodily injury (BI) and property damage (PD) coverage) since expenses that go over a threshold amount may require that the driver who was at fault pay additional expenses.