No-fault insurance pays benefits regardless of who is at fault in an accident. Several states now require all drivers to have no-fault insurance. No fault insurance is sometimes referred to in the insurance industry as personal injury protection. It is intended to cover medical expenses and lost income due to an accident. It will, however, only pay those expenses up to a preset limit. Any claims you have for expenses over that amount or for pain or suffering are not covered by this kind of policy.
A few states have adopted system that is called an optional modified plan. If you live in one of those states, then you have a choice of being insured under a no fault insurance plan. One benefit to the no fault option is that you cannot be sued by another driver due to an accident in which you are at fault. The downside is that you also cannot sue a driver if you have expenses over the insurance coverage limit. The other option in those states is to forego the no fault insurance. This allows you to retain the right to sue if necessary.
In many states you must be offered personal injury protection (no-fault insurance) and if you decide not to enroll in it you must decline it in writing. If you don’t sign the rejection then the insurance company is required to add it to your policy and it will be reflected in your premiums. Additionally, some insurance companies require you to cover all vehicles or none with no-fault insurance.
When you have health insurance that would cover medical expenses and life insurance or savings for funeral expenses, consider whether or not you need this additional coverage.
Keep in mind that this insurance policy covers the driver whose name appears on the policy and household members who are related to the driver. If non-related passengers or pedestrians are injured in accident then they are included in the coverage as well.
To determine if this coverage is right for you discuss it with your insurance agent or lawyer so they can give you advice for your specific situation.