Does cheap no-fault auto insurance exist? (2024)
You can buy cheap no-fault auto insurance in the 12 states requiring it. No-fault laws limit your right to sue others for medical compensation. Instead, drivers must get PIP coverage, averaging $175/yr, to cover their medical bills after an accident. We'll help you find the cheapest no-fault insurance below.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Oct 20, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 20, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If you live in one of the 12 no-fault states, auto insurance laws require you to purchase additional coverage limits beyond traditional liability policies, like personal injury protection (PIP).
Fortunately, cheap no-fault auto insurance does exist, and our guide will help you find it. Nationally, personal injury protection (PIP) auto insurance coverage costs around $175 annually, or $15 monthly.
You cannot sue the at-fault driver for medical damages below a specific dollar amount in no-fault states. Instead, you must use your PIP insurance to cover those losses. PIP also pays for lost wages, funeral expenses, survivor’s benefits, and even rehabilitation services that result from an accident.
Keep reading to see average costs and tips for finding cheap auto insurance, regardless of if you live in a true no-fault state, a choice no-fault state, or one of the tort states that must offer PIP coverage. Find the best cheap no-fault auto insurance company near you by entering your ZIP code into our free quote tool above.
- Find cheap no-fault auto insurance by shopping around
- In the 12 no-fault auto insurance states, drivers use their own insurance for medical bills
- No-fault auto insurance typically refers to personal injury protection, or PIP
Average Cost of No-Fault Auto Insurance Coverage
No-fault auto insurance refers specifically to PIP insurance. To understand PIP insurance’s average cost, we need to look at the pure premium cost for this insurance coverage type.
A pure premium refers to how much money it costs an insurance provider on average to pay for certain types of claims in 12 months.Justin Wright Licensed Insurance Agent
Companies use pure premiums to calculate auto insurance rates for the different types of coverages. Usually, customer rates are slightly higher than the pure premium because pure premiums do not include overhead costs.
The national average pure premium cost of PIP insurance is between, according to a data report by the National Association of Insurance Commissioners (NAIC). The data set includes “choice” no-fault states and tort states that offer PIP coverage.
In other words, the national average cost an insurance company pays for all PIP claims in one calendar year is $175 per incident. Customers likely pay slightly more than this.
See the pure premium cost for PIP coverage by state from the same NAIC data report in the table below. States are labeled based on the auto insurance laws.
Personal Injury Protection Auto Insurance Monthly Rates by State
| States | Law | Rates |
|---|---|---|
| Arkansas | Tort | $1.36 |
| District of Columbia | Tort | $2.08 |
| Connecticut | Tort | $2.18 |
| Utah | No-Fault | $2.77 |
| Kansas | No-Fault | $2.82 |
| Massachusetts | No-Fault | $3.10 |
| North Dakota | No-Fault | $3.43 |
| Pennsylvania | Choice No-Fault | $4.60 |
| Hawaii | No-Fault | $4.66 |
| Maryland | Tort | $4.75 |
| Washington | Tort | $6.28 |
| Kentucky | Choice No-Fault | $6.33 |
| Oregon | Tort | $6.64 |
| Minnesota | No-Fault | $8.72 |
| Delaware | Tort | $13.19 |
| New York | No-Fault | $15.93 |
| Florida | No-Fault | $17.68 |
| New Jersey | Choice No-Fault | $18.99 |
| Michigan | No-Fault | $55.40 |
Folks living in states with low pure premiums can easily secure cheap no-fault auto insurance rates. However, PIP insurance costs more in states with higher pure premiums.
There are dozens of different factors that affect auto insurance rates besides coverage limits, including your age, driving record, and even the type of vehicle you drive. Every company uses a different method for calculating costs.
To help you buy cheap no-fault auto insurance, compare quotes from multiple providers before choosing a company.
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Companies With Cheap No-Fault Auto Insurance
You secure cheap no-fault auto insurance quotes from most major insurance companies. However, some companies are less expensive on average in individual states than others.
In the table below, see the cheapest auto insurance company in each of the states that sell PIP coverage, as well as the average annual auto insurance cost.
Cheapest No-Fault Auto Insurance Monthly Rates by Company and State
| States | Law | Company | Rates |
|---|---|---|---|
| Hawaii | No-Fault | State Farm | $86.69 |
| Massachusetts | No-Fault | State Farm | $113.45 |
| Pennsylvania | Choice No-Fault | USAA Geico | $149.45 $217.10 |
| North Dakota | No-Fault | USAA State Farm | $167.23 $213.38 |
| Minnesota | No-Fault | State Farm | $172.25 |
| Washington | Tort | Allied Property and Casualty Insurance Company | $177.49 |
| Kansas | No-Fault | American Family | $178.87 |
| Arkansas | Tort | USAA State Farm | $180.92 $232.42 |
| Delaware | Tort | USAA Geico | $193.83 $310.61 |
| New York | No-Fault | Geico | $202.35 |
| Utah | No-Fault | USAA Geico | $207.59 $247.13 |
| District of Columbia | Tort | USAA Geico | $215.04 $307.73 |
| Oregon | Tort | USAA Standard and Fire Insurance Company | $215.07 $239.08 |
| Maryland | Tort | USAA Nationwide | $228.68 $242.97 |
| New Jersey | Choice No-Fault | Geico | $229.58 |
| Florida | No-Fault | USAA State Farm | $237.53 $283.14 |
| Kentucky | Choice No-Fault | USAA State Farm | $241.91 $279.53 |
| Connecticut | Tort | State Farm | $248.02 |
| Michigan | No-Fault | USAA Progressive | $301.51 $445.43 |
USAA only sells insurance products to military personnel and their families. We’ve provided the second cheapest option in those states to accommodate every driver.
Now that you know what companies offer cheap PIP auto insurance in your state, remember that each company offers different deals to attract consumers like you to buy their products.
Depending on your unique situation, some deals will be more enticing than others. You can’t trust everything you hear about specific companies, plans, or promotions.
Put in the research and always compare quotes from multiple providers when shopping for auto insurance.
Affordable no-fault auto insurance exists; you just have to know where to look.
Defining No-Fault Auto Insurance
Auto insurance laws vary by state. You must carry your state’s minimum insurance requirements to drive on the roads legally. According to the Insurance Information Institute (III), liability insurance is required in virtually every state.
However, in the 12 no-fault states, an additional coverage known as PIP insurance is also required. See the different legal insurance limits by state in the table below.
Minimum Liability Auto Insurance Requirements by State
| States | Coverages | Liability Limits | PIP Limit | No-Fault/At-Fault |
|---|---|---|---|---|
| Alabama | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Alaska | Bodily injury & property damage liability | 50/100/25 | X | At-Fault |
| Arizona | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Arkansas | Bodily injury & property damage liability, personal injury protection (PIP) | 25/50/25 | $5,000, optional | At-Fault |
| California | Bodily injury & property damage liability | 15/30/5 | X | At-Fault |
| Colorado | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Connecticut | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Delaware | Bodily injury & property damage liability, personal injury protection (PIP) | 25/50/10 | $30,000 | At-Fault |
| Florida | Property damage liability, personal injury protection (PIP) | 10/20/10 | $10,000 | No-Fault |
| Georgia | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Hawaii | Bodily injury & property damage liability, personal injury protection (PIP) | 20/40/10 | $10,000 | No-Fault |
| Idaho | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Illinois | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/20 | X | At-Fault |
| Indiana | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Iowa | Bodily injury & property damage liability | 20/40/15 | X | At-Fault |
| Kansas | Bodily injury & property damage liability, personal injury protection (PIP) | 25/50/25 | $9,000 | No-Fault |
| Kentucky | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/25 | $10,000 | No-Fault |
| Louisiana | Bodily injury & property damage liability | 15/30/25 | X | At-Fault |
| Maine | Bodily injury & property damage liability, uninsured motorist, underinsured motorist, medical payments | 50/100/25 | X | At-Fault |
| Maryland | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 30/60/15 | $2,500, optional | At-Fault |
| Massachusetts | Bodily injury & property damage liability, personal injury protection (PIP) | 20/40/5 | $8,000 | No-Fault |
| Michigan | Bodily injury & property damage liability, personal injury protection (PIP) | 20/40/10 | $50,000 | No-Fault |
| Minnesota | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 30/60/10 | $40,000 | No-Fault |
| Mississippi | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Missouri | Bodily injury & property damage liability, uninsured motorist | 25/50/25 | X | At-Fault |
| Montana | Bodily injury & property damage liability | 25/50/20 | X | At-Fault |
| Nebraska | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Nevada | Bodily injury & property damage liability | 25/50/20 | X | At-Fault |
| New Hampshire | Financial responsibility only | 25/50/25 | X | At-Fault |
| New Jersey | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 15/30/5 | $15,000 | No-Fault |
| New Mexico | Bodily injury & property damage liability | 25/50/10 | X | At-Fault |
| New York | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/10 | $50,000 | No-Fault |
| North Carolina | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 30/60/25 | X | At-Fault |
| North Dakota | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/25 | $30,000 | No-Fault |
| Ohio | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Oklahoma | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| Oregon | Bodily injury & property damage liability, personal injury protection (PIP), uninsured motorist, underinsured motorist | 25/50/20 | $15,000 | At-Fault |
| Pennsylvania | Bodily injury & property damage liability, personal injury protection (PIP) | 15/30/5 | $5,000 | No-Fault |
| Rhode Island | Bodily injury & property damage liability | 25/50/25 | X | At-Fault |
| South Carolina | Bodily injury & property damage liability, uninsured motorist | 25/50/25 | X | At-Fault |
| South Dakota | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Tennessee | Bodily injury & property damage liability | 25/50/15 | X | At-Fault |
| Texas | Bodily injury & property damage liability, personal injury protection (PIP) | 30/60/25 | $2,500, optional | At-Fault |
| Utah | Bodily injury & property damage liability, personal injury protection (PIP) | 25/65/15 | $3,000 | No-Fault |
| Vermont | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/10 | X | At-Fault |
| Virginia | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/20 | X | At-Fault |
| Washington | Bodily injury & property damage liability | 25/50/10 | $10,000, optional | At-Fault |
| Washington, D.C. | Bodily injury & property damage liability, uninsured motorist | 25/50/10 | $50,000, optional | At-Fault |
| West Virginia | Bodily injury & property damage liability, uninsured motorist, underinsured motorist | 25/50/25 | X | At-Fault |
| Wisconsin | Bodily injury & property damage liability, uninsured motorist, medical payments | 25/50/10 | X | At-Fault |
| Wyoming | Bodily injury & property damage liability | 25/50/20 | X | At-Fault |
Before July of 2020, Michigan required drivers to purchase unlimited PIP coverage, causing the rates to skyrocket. However, Michigan residents can now choose from six different coverage limits.
Drivers instead are required to purchase PIP insurance, and you receive medical monetary compensation and other losses through your own auto insurance provider. It’s important to note that this type of coverage does not pay for any repairs to your vehicle.
If injured in an accident, you file a PIP insurance claim through your provider. Your insurer will compensate you for losses up to your policy limits.
In some states, filing a PIP claim can cause your rates to increase when your policy is up for renewal. However, it depends on the laws and regulations where you live.
Medical payments coverage (MedPay) also compensates drivers injured in an accident regardless of fault, but the coverage is more limited than PIP.
Do you need medical payments coverage on your auto insurance if you have PIP coverage? No, purchasing both policies is often unnecessary.
If you happen to live in a no-fault state, you may feel like you got the short end of the deal because you can’t sue for damages if someone is determined to be at fault in an accident.
However, your insurance premiums don’t have to cover as many legal fees as tort states, leading to lower rates.
Personal Injury Protection (PIP) Auto Insurance
As previously mentioned, no-fault insurance states always mandate PIP plans; this is the reason that cheap no-fault auto insurance plans can be challenging to find.
PIP policies can sometimes be more expensive than standard insurance policies.
Personal injury protection covers most injury-related expenses that result from an auto accident, regardless of fault. PIP covers doctor bills, hospital costs, lost wages, funeral expenses, and other compensation.
In reality, this type of coverage includes elements of personal medical, life, and employment insurance, which is why it can be an expensive part of your insurance plan.
However, some PIP plans have higher limits than others. Depending on how much or how little the plan covers, your auto insurance premiums may be significantly higher or lower.
Difference Between No-Fault and Tort Auto Insurance
No-fault auto insurance differs from tort auto insurance in several important ways.
For example, in a no-fault state, your policy provider pays for your insurance rather than the driver’s policy provider determined to be at fault. In a tort state, you’d go through the at-fault driver’s insurance.
Some claim that a no-fault policy is less stressful than a tort policy because involving courts always takes more time and energy. However, it’s everyone for him or herself out on the roads, and defensive driving is more of a necessary skill in a no-fault state than following the official rules of the road.
You may worry more about making sure you don’t get into an accident on the streets in a no-fault state. Contrary to popular belief, no-fault auto insurance policies are not necessarily more expensive than tort policies. Many tort policy providers do a lot of advocacy and legal work to ensure that the other policy provider has to pay the bill, but this work costs money.
In a no-fault state, you’re saving money on policy rates by not going through as many lawsuits as tort states.
The legal budget for companies in no-fault states doesn’t need to be as large as at-fault states. Ideally, customers should see lower average auto insurance costs as a result.
In any case, whether you are getting a no-fault or a tort insurance policy, you will pay significantly less for your premiums if you stay out of accidents and keep your driving record clean.
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Difference Between “Choice” No-Fault and No-Fault Auto Insurance
There are three significant insurance provider categories: true no-fault coverage, “add-on” no-fault coverage, and tort or at-fault coverage.
Additionally, three of the 12 at-fault states offer “choice” no-fault, which gives you the option of signing up for the state’s true or add-on no-fault plan, or you can choose a tort plan.
We’ve previously covered how no-fault states have laws in place limiting your litigation rights. However, in some of the 12 states, you can sue for monetary losses if your medical expenses go beyond a tort threshold.
You can seek legal compensation for verbal tort thresholds, or extreme injuries, in the other states, including death, disfigurement, fractured bones, dismemberment, or loss of pregnancy.
Take a look at the threshold laws for the 12 no-fault states:
- Florida: Verbal
- Hawaii: $5,000
- Kansas: $2,000
- Kentucky: $1,000
- Massachusetts: $2,000
- Michigan: Verbal
- Minnesota: $4,000
- New Jersey: Verbal
- New York: Verbal
- North Dakota: $2,500
- Pennsylvania: Verbal
- Utah: $3,000
The three states with a “choice” no-fault system are Kentucky, New Jersey, and Pennsylvania. In these “choice” no-fault states, you can choose to retain your litigation rights. You make this choice at the time of purchasing an auto insurance policy. Often, keeping your tort rights causes your auto insurance costs to increase.
No matter what choice you make in Kentucky, you’ll still be required to purchase PIP coverage for any passengers or pedestrians.
Finally, the states that offer “add-on” no-fault insurance, which consists of tort insurance with a few elements of the no-fault system are:
- Arkansas Auto Insurance
- Delaware Auto Insurance
- Washington, D.C. Auto Insurance
- Maryland Auto Insurance
- New Hampshire Auto Insurance
- Oregon Auto Insurance
- South Dakota Auto Insurance
- Texas Auto Insurance
- Virginia Auto Insurance
- Washington Auto Insurance
- Wisconsin Auto Insurance
All of these states have at-fault auto insurance laws in place. However, some of them still require PIP coverage, including Delaware and Oregon.
Liability insurance covers the other party's injuries 🩹when you cause a crash but doesn't cover your injury costs💵. https://t.co/27f1xf1ARb has a guide 📑to PIP insurance to help you decide if it's right for you. For all the info you need, check out👉: https://t.co/nvfJAtfPV0 pic.twitter.com/mAMcCEVZju
— AutoInsurance.org (@AutoInsurance) October 5, 2023
Ultimately, tort providers may end up costing more money overall than no-fault providers. The differences between no-fault and tort insurance, when it comes to how you should handle yourself on the road and the premiums you pay, are minimal at best.
In other words, it’s not about whether your state is tort or no-fault. It’s about whether your auto insurance policy is a good deal or not.
More About How to Buy Cheap No-Fault Auto Insurance
Regardless of the state laws, your best auto insurance company will provide you with affordable rates without compromising your coverage needs. Shop around and compare quotes from various providers before purchasing a policy.
You can compare and buy cheap no-fault auto insurance right now for free by entering your ZIP code into our quote tool below.
Frequently Asked Questions
Does cheap no-fault auto insurance exist?
No-fault auto insurance is a type of insurance system where each driver’s own insurance company pays for their medical expenses and other damages, regardless of who caused the accident.
While the cost of insurance varies depending on various factors, it’s important to note that the availability of cheap no-fault auto insurance depends on your location and specific circumstances. No-fault insurance systems can vary from state to state, and the cost of insurance is influenced by factors such as your driving history, age, vehicle type, and coverage limits.
What factors influence the cost of no-fault auto insurance?
The cost of no-fault auto insurance is influenced by several factors, including your location, driving record, age, gender, marital status, vehicle make and model, coverage limits, and deductible amount. Insurance companies assess these factors to determine the level of risk associated with insuring you and calculate the corresponding premium.
It’s important to compare quotes from multiple insurance providers to find the best coverage options at an affordable price.
Are there any ways to reduce the cost of no-fault auto insurance?
While the cost of insurance is determined by various factors, there are a few ways you can potentially reduce the cost of your no-fault auto insurance:
- Maintain a clean driving record: A history of safe driving with no accidents or traffic violations can help lower your insurance premium.
- Choose a higher deductible: Opting for a higher deductible means you’ll have to pay more out of pocket in the event of a claim, but it can lower your premium.
- Take advantage of discounts: Insurance providers often offer discounts for factors such as bundling multiple policies, having safety features in your vehicle, being a good student, or completing a defensive driving course. Inquire about available discounts to maximize your savings.
- Shop around and compare quotes: Different insurance companies offer varying rates, so it’s important to obtain quotes from multiple providers to find the most affordable option that meets your coverage needs.
Can no-fault auto insurance be more affordable than traditional auto insurance?
No-fault auto insurance systems are designed to provide more efficient and timely compensation for accident-related injuries and damages. While the cost of insurance depends on various factors, no-fault insurance may offer certain cost-saving benefits, such as streamlined claims processing and reduced legal expenses associated with determining fault.
However, the actual affordability of no-fault auto insurance compared to traditional auto insurance can vary depending on your location and individual circumstances. It’s advisable to compare quotes and coverage options from multiple insurance providers to find the best fit for your budget and needs.
Are there any downsides to choosing no-fault auto insurance?
While no-fault auto insurance provides benefits such as faster claims processing and coverage for medical expenses regardless of fault, it also has potential drawbacks. Some downsides may include higher premiums due to increased coverage limits, limited options for pursuing legal action against at-fault drivers for non-economic damages, and the potential for insurance fraud. It’s essential to understand the specific regulations and provisions of your state’s no-fault insurance system and evaluate whether it aligns with your needs and preferences.
Can I switch from traditional auto insurance to no-fault auto insurance or vice versa?
The availability of no-fault auto insurance and the ability to switch between no-fault and traditional auto insurance depends on your state’s insurance regulations. Some states have mandatory no-fault insurance systems, while others have traditional fault-based systems. If your state offers both options, you may have the flexibility to switch between them.
Why is PIP insurance required in a no-fault auto insurance state?
Laws are in place that limit your rights to sue other drivers for damages caused by injuries from a car accident below a specified threshold.
What is the cheapest liability-only car insurance?
Usually, USAA, Geico, and State Farm offer the cheapest liability coverage.
Which type of insurance is often referred to as no-fault coverage?
Usually, people are referring to personal injury protection when they say “no-fault coverage.” Personal injury protection helps pay for you and your passengers’ medical expenses after an accident.
What is the disadvantage of a no-fault insurance system?
One of the most significant drawbacks of a no-fault system is that drivers can’t receive compensation from others for pain and suffering.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.