What Is the Difference Between Fault and No-Fault States?

One of the most essential elements in auto insurance is the concept of fault. In an auto collision, determining who is at fault dictates who is liable for the payment of compensation.

From an insurance standpoint, states are divided into two general categories: at-fault (or “tort”) states and no-fault states. The distinction is critical because it determines the steps you must take to get your medical bills and vehicle repairs paid.

What Is a Fault-Based (Tort) State?

In an at-fault state—legally referred to as a “Tort State”—the driver who caused the collision is responsible for paying for any injuries and losses they inflicted on others.

In these states, compensation is typically paid through the at-fault driver’s:

  • Bodily Injury Liability Insurance: Covers medical expenses for the victim.

  • Property Damage Liability Insurance: Covers damage to the victim’s vehicle and other property.

These policies have upper limits. If fair compensation exceeds these limits, the at-fault driver may be personally liable to pay the difference out of pocket.

What Is a No-Fault State?

In a no-fault state, fault effectively does not apply to bodily injury claims initially. Regardless of who caused the crash, each driver must file a claim with their own insurance company to pay for their respective medical bills and lost wages. This coverage is known as Personal Injury Protection (PIP).

How PIP Works

PIP coverage is mandatory in no-fault states. It ensures that medical providers are paid quickly without waiting for an investigation into who caused the accident. However, fault still applies to property damage; the at-fault driver’s insurance is generally still responsible for repairs to the other driver’s vehicle.

The 12 No-Fault States

The states currently operating under no-fault laws are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

Note: In Kentucky, New Jersey, and Pennsylvania, drivers can “opt-out” of the no-fault system to retain their right to sue.

Lawsuit Restrictions: The Serious Injury Threshold

A critical distinction in no-fault states is the restriction on lawsuits. You generally cannot sue the at-fault driver for non-economic damages (like pain and suffering) unless your injuries meet a specific “Serious Injury Threshold.”

This threshold varies by state but usually requires the injury to be permanent, disfiguring, or result in significant loss of bodily function. If your injuries do not meet this threshold, your recovery is limited strictly to your PIP coverage for economic losses.

Comparison: The Insurance Claim Process

The path to compensation looks very different depending on the system. The table below outlines the general workflow for a standard car accident claim in both systems.

Feature At-Fault (Tort) State No-Fault State
Who pays medical bills? The at-fault driver’s insurance (eventually) or your health insurance/MedPay. Your own insurance via PIP (Personal Injury Protection).
Who pays for car repairs? The at-fault driver’s insurance. The at-fault driver’s insurance.
Can you sue for pain & suffering? Yes. You can sue for pain and suffering regardless of injury severity. Restricted. You can only sue if you meet the “Serious Injury Threshold.”
Wait time for payment Can be long; often requires determining liability first. Generally faster for medical bills; no liability determination needed for PIP.

The Illinois Approach: A Fault State

Illinois is a fault (tort) state. In practical terms, this means that if you are involved in a vehicle collision here, your ability to seek compensation depends on proving the other driver was primarily negligent.

Illinois Financial Responsibility Laws

To ensure victims can recover damages in a tort system, Illinois enforces Financial Responsibility Laws. All drivers are required to carry minimum liability insurance limits to cover the injuries or damage they might cause. Currently, drivers must carry coverage for bodily injury or death of one person, bodily injury or death of more than one person, and property damage.

Modified vs. Pure Comparative Negligence

Illinois follows a modified comparative negligence model. This is distinct from “pure comparative negligence” states (like California), where you can recover damages even if you are 99% at fault.

In Illinois:

  • The 51% Bar: You can recover compensation only if you are less than 51% at fault. If you are found to be 51% or more responsible, you are barred from recovering any damages.

  • Reduced Recovery: Your compensation is reduced by your percentage of fault. For example, if you are awarded $100,000 but found 20% at fault, your recovery is reduced to $80,000.

How Working with an Experienced Car Accident Lawyer Can Make a Difference

Because Illinois is a fault state with a 51% bar on recovery, determining exactly who caused the accident is the most critical aspect of your case. Insurance companies often try to shift blame onto you to push your liability over that 51% threshold, thereby avoiding paying you anything.

It is an attorney’s job to gather and review the evidence—including medical documentation, auto repair bills, and police reports—to protect your right to compensation.

Why Choose Salvi, Schostok & Pritchard P.C.?

Your choice of lawyer impacts the outcome of your case. The initial offer from an insurance company is often far less than what you legally deserve. We review the total cost of your injuries and fight aggressively for the maximum amount.

  • Proven Results: We have recovered more than $3 billion for our clients.

  • Record-Breaking Verdicts: This includes a $33.2 million verdict on behalf of an auto accident victim.

Discussions of fault, tort law, and financial responsibility can be complex. Contact Salvi, Schostok & Pritchard P.C. today for a free, no-obligation consultation. We will listen to your story and help you navigate the Illinois legal system to get the justice you deserve.