No-fault states limit suing for injuries in car accidents. Some require drivers to carry insurance covering their own injury costs. States vary in application, some have no restrictions, and others allow opting out of no-fault insurance. Some require personal injury protection (PIP) coverage like Florida and Michigan.

Legal recourse may be limited, premiums may increase, and policies may be costlier in no-fault states. Liability insurance typically doesn’t cover your own losses. No-fault laws aim to reduce insurance costs, but some argue they don’t adequately compensate for long-term damages.

In no-fault states, you must file a claim with your own insurance company after an accident, regardless of fault. PIP and MedPay are two forms of no-fault coverage. MedPay is mandatory in Maine and New Hampshire, but optional in others. It covers direct medical costs, but not indirect expenses like lost wages.

At-fault drivers cover property damages in no-fault states. All states, except New Hampshire, require property damage liability insurance. Each state sets its own criteria for lawsuits in no-fault accidents, usually involving medical expenses exceeding a certain threshold. New York, for example, requires expenses over $50,000 or specific injuries before a lawsuit can be filed.

Read more at Yahoo Finance: What is a no-fault state, and how does it impact your auto insurance?