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Updated April 2026 | III, NAIC, state DOI filings

No-Fault State Car Insurance Per Month: PIP Required in 12 Jurisdictions

12 states require PIP. The cheapest is Hawaii at $143 per month; the most expensive is Florida at $321. The 2019 Michigan reform, the Pennsylvania choice between full and limited tort, and why no-fault is not a single product.

The no-fault state roundup

StateFull coverage / moMin limitsNote
Hawaii$14320/40/10Credit scoring banned. No-fault state with lower-than-average accident severity and low ve...
North Dakota$14825/50/25No-fault state with PIP but very low population density and low accident frequency yield m...
Massachusetts$16320/40/5Credit scoring banned. No-fault state. Despite high population density, strict regulation ...
Minnesota$17530/60/10No-fault PIP state with UM required. Moderate rates despite the PIP requirement -- low fra...
Kansas$18025/50/25No-fault state with PIP. Hail and tornado risk (comprehensive claims) lift rates above nei...
Utah$18325/65/15No-fault PIP state. 2025 limit increase. Growing Salt Lake metro and high per-capita vehic...
Pennsylvania$18815/30/5Choice no-fault state. PA's low statutory minimums are offset by high bodily-injury litiga...
Delaware$21025/50/10No-fault PIP state. Urban density in Wilmington corridor drives higher-than-average rates....
Kentucky$22525/50/25Choice no-fault state. High uninsured-driver rate and elevated litigation for drivers who ...
Michigan$24650/100/10Credit scoring banned. Michigan's no-fault PIP was reformed in 2020 but remains expensive;...
New Jersey$25235/70/25New Jersey's Jan 2026 minimum limit increase and PIP no-fault system place it among the mo...
New York$26825/50/10New York City density, high bodily-injury claim severity, mandatory no-fault PIP, and requ...
Florida$32110/20/10 (PIP $10K)Florida's no-fault PIP system and high uninsured-driver rate (~20%), combined with hurrica...

The Michigan no-fault reform of 2019

Michigan operated the most expensive no-fault system in the country from the 1970s through 2019, with mandatory unlimited PIP medical coverage that resulted in Michigan having the highest average auto insurance premiums in the US, often $300+ per month for full coverage. The unlimited PIP system was actuarially generous (any auto-injury medical cost was covered for life) but the premium burden became politically untenable.

Public Acts 21-23 of 2019 (the Michigan no-fault reform package) restructured the system effective July 2020. Drivers could now choose PIP medical coverage levels: $50,000 (only available to drivers with qualifying Medicaid coverage), $250,000, $500,000, or unlimited. The reform also banned credit-based insurance scoring (Michigan was previously a credit-scoring state) and capped attorney fees in auto-injury cases.

The effect on premiums has been mixed. Drivers who chose lower PIP limits saw real savings (15 to 35 percent on the PIP component). Drivers who chose unlimited PIP saw modest savings (5 to 15 percent). Average Michigan full coverage premium fell from approximately $310 per month pre-reform to approximately $246 per month in 2026, still high but no longer the highest in the country. Michigan now ranks behind Florida, Louisiana, Nevada, and New York.

The Pennsylvania choice: full vs limited tort

Pennsylvania operates a choice no-fault system. At policy inception, drivers choose between full tort and limited tort coverage. Full tort preserves the unrestricted right to sue for pain and suffering after an accident. Limited tort restricts the right to sue to cases meeting a serious injury threshold (death, serious disfigurement, serious impairment of bodily function).

Limited tort coverage typically costs 15 to 20 percent less than full tort for equivalent liability limits. The trade-off is the loss of right to sue for pain and suffering in less-than-serious injuries. Most Pennsylvania drivers choose limited tort for the savings. The choice is at the household level and applies to all household drivers; you cannot mix the two within one policy.

Why some no-fault states are cheap and others are expensive

The no-fault status alone does not predict cost. Hawaii is a no-fault state and ranks 7th cheapest in the country. Massachusetts is a no-fault state and ranks 13th cheapest. Florida is a no-fault state and ranks 50th (second most expensive). The composite of factors that drive each state's premium (population density, uninsured-driver rate, litigation environment, weather risk, fraud levels, statutory minimum limits) overshadow the no-fault classification.

Hawaii's cheap rates stem from low accident severity (slow speeds on island roads), low uninsured-driver rate, low theft, and low litigation. Florida's expensive rates stem from a historically fraud-prone PIP system (multiple legislative attempts to clean up the fraud have had limited effect), a high uninsured-driver rate around 20 percent, hurricane-related comprehensive claims, and large urban populations. The no-fault classification is shared but the cost outcomes diverge entirely.

No-fault state FAQs

What is no-fault car insurance?
No-fault is a system where each driver's own insurance pays their own medical bills and lost wages after an accident, regardless of who was at fault. This contrasts with the traditional at-fault system where the at-fault driver's liability coverage pays for the other driver's injuries. No-fault systems require drivers to carry Personal Injury Protection (PIP), which pays the driver's own medical bills. No-fault was designed to reduce litigation and speed up claim payments, but has had mixed results: some no-fault states have higher overall premiums than at-fault states.
Which states are no-fault?
Twelve jurisdictions require PIP and operate as no-fault states in 2026: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. Delaware, Oregon, Maryland, and Washington require PIP but operate as at-fault states with mandatory PIP layers. Other states permit optional PIP. The no-fault classification specifically means that the at-fault driver's liability does not pay the other driver's medical bills below a tort threshold; instead each driver's PIP covers their own injuries.
How much does no-fault insurance cost per month?
No-fault state premiums vary widely. Hawaii ($143/mo) and Massachusetts ($163/mo) are among the cheapest states despite their no-fault status. Florida ($321/mo), Michigan ($246/mo), New York ($268/mo), and New Jersey ($252/mo) are among the most expensive. The no-fault status alone does not determine cost; the mandatory PIP coverage adds approximately $20 to $80 per month to the policy, but the bigger drivers of state-by-state variation are urban density, litigation environment, weather risk, and uninsured-driver rate.
What is Michigan's no-fault reform?
Michigan reformed its no-fault system in 2019 under Public Act 21 (Public Acts 21-23 of 2019). The reform allowed drivers to choose PIP medical coverage levels (previously unlimited PIP was mandatory). Options now range from $50,000 (qualifying Medicaid drivers) to $250,000 to $500,000 to unlimited. The reform also banned credit-based insurance scoring in auto rating and capped attorney fees in auto-injury cases. The intended effect was lower premiums, with mixed results: drivers who chose lower PIP limits saw real savings but face higher out-of-pocket exposure for serious injuries. Drivers who chose unlimited PIP saw modest savings.
Is no-fault better than at-fault?
Mixed answer. No-fault speeds up claim payments for minor injuries because the driver's own PIP pays without waiting for fault determination. No-fault reduces lawsuits over minor claims. However, no-fault adds a mandatory premium component (PIP) that all drivers pay regardless of fault. For drivers who are typically at-fault in accidents, no-fault is favourable because the at-fault liability exposure is reduced. For drivers typically not-at-fault, at-fault systems may be preferable because the at-fault driver's liability pays the victim's bills. The system that suits you depends on driving patterns, but as an individual driver you do not choose; the state legislature does.
Can I sue in a no-fault state?
Yes, but only above the tort threshold. No-fault states permit lawsuits for non-economic damages (pain and suffering) only when injuries exceed a defined threshold. The threshold varies: Florida uses a verbal threshold (specific injury types like death, significant permanent loss of bodily function). Michigan uses a verbal threshold. New York uses a verbal threshold plus a $50,000 economic threshold. Pennsylvania allows drivers to choose between full tort and limited tort coverage at policy inception. Below the threshold, claims are limited to economic damages (medical bills, lost wages) under PIP.
Does no-fault apply to property damage?
No. PIP covers bodily injury only. Property damage claims (vehicle damage, garage damage, fence damage) still operate on an at-fault basis even in no-fault states. The at-fault driver's property damage liability pays for the other driver's vehicle repair or replacement. This is why even no-fault states require property damage liability minimums (typically $5,000 to $25,000) in addition to PIP.