No Fault Insurance vs Uninsured Motorist
No fault insurance pays for injuries no matter who caused the crash. Uninsured motorist coverage pays when the other driver has no insurance at all.
They cover two different situations
No fault insurance is a system some states use for injury claims. After a crash, your own policy pays your medical bills regardless of who was at fault, up to your policy's limit. You don't have to prove the other driver caused the accident, and in many no fault states you're limited in when you can sue them.
Uninsured motorist coverage is a separate kind of protection that pays you when the other driver has no insurance, or not enough of it, to cover what they owe you. You can have uninsured motorist coverage whether or not you live in a no fault state. Neither one replaces the other, and depending on your state, you may be required to carry both.
Whether your state is a no fault state
Whether no fault rules apply to you at all depends entirely on your state. A handful of states require no fault coverage, often called personal injury protection, as part of every policy sold there. In the rest, injury claims work on a fault basis, meaning the driver who caused the crash is responsible for the other driver's costs.
If you live in a no fault state, your own insurer pays your medical bills after a crash up to your coverage limit, no matter who caused it. That coverage doesn't touch what happens if the other driver has no insurance. You can still be left paying for your own damaged car, lost wages beyond what your no fault coverage pays, or injuries that exceed your limit.
Uninsured motorist coverage fills that gap. If you're not sure whether your state requires no fault coverage, uninsured motorist coverage, or both, your insurer or your state's insurance department can tell you exactly what's required and what's optional where you live.
What each one actually pays for
No fault coverage is built around medical costs from the crash itself. It typically pays for things like hospital bills, follow up care, and sometimes lost income, for you and your passengers, without anyone having to establish blame first.
Uninsured motorist coverage is built around the other driver's failure to carry insurance, or carrying too little. Depending on how your policy is written, it can cover your medical bills, your car's damage, and other losses you'd otherwise have had to recover from a driver who simply can't pay.
A driver who causes a crash while uninsured doesn't stop owing you money just because your no fault coverage paid your initial medical bills. Uninsured motorist coverage is what stands in for that driver when there's nothing to collect from them directly.
If you're deciding how much of each to carry, think about what each one would actually have to cover. No fault coverage protects your medical costs. Uninsured motorist coverage protects you from a driver who has nothing to offer you at all.
Questions people ask about this
Does no fault insurance cover my car damage?
Usually not. No fault coverage is focused on medical costs from the crash, not vehicle repairs. Damage to your car is typically handled through collision coverage or through the at fault driver's property damage liability coverage, so check your policy's declarations page to see what you're carrying for vehicle damage specifically.
Can I sue the other driver in a no fault state?
It depends on your state and how serious the injury is. No fault states generally limit lawsuits for injury claims below a certain threshold, which is usually defined by the severity of the injury or the cost of treatment rather than a dollar figure alone. Your state's rules set the exact threshold, so it's worth asking your insurer or checking your state's statutes if you're dealing with a specific claim.
Is uninsured motorist coverage required by law?
It depends on the state. Some states require it on every policy, others make it optional, and insurers in optional states are often required to offer it even if you can decline it in writing. Ask your insurer whether it's mandatory where you live and what happens if you decline it.
What happens if the other driver has some insurance but not enough?
That's typically where underinsured motorist coverage applies, which is a close relative of uninsured motorist coverage. It covers the gap between what the at fault driver's insurance pays and what your damages actually come to. Check whether your policy includes both uninsured and underinsured motorist coverage, since they're sometimes sold together and sometimes separately.
Does my no fault coverage go away if I have uninsured motorist coverage too?
No, they work independently of each other. No fault coverage pays your medical bills regardless of fault, and uninsured motorist coverage pays when the other driver can't cover what they owe you. Having one doesn't reduce or replace what the other pays out.
See what it would cost to carry both kinds of coverage before you decide what to drop.
Pull out your policy's declarations page and look for two things: whether you carry personal injury protection or no fault coverage, and whether you carry uninsured or underinsured motorist coverage. If either is missing, call your insurer and ask what it would take to add it and what it would mean for your premium. Ask them directly whether your state requires either coverage, since that answer depends on where you live. If you're comparing quotes from a few insurers, ask each one to show you the cost with and without both coverages included, so you can see the actual difference rather than guessing at it.
