Fault-based system
- The at-fault driver's insurer pays your losses
- Who caused the crash is decided at the start
- You can claim pain and suffering without a threshold
- Used in most US states and throughout the UK
Insurance
Fault vs no-fault insurance
After a car crash, the insurance system where it happened decides whose insurer you claim from first and whether you can sue for pain and suffering.
The short answer
In a fault-based system, you claim against the insurer of the driver who caused the crash. In a no-fault system, your own insurer pays set benefits, such as medical bills and some lost wages, regardless of who caused it, and you can usually only sue the other driver if your injury is serious enough to meet a threshold. The UK is fault-based. About a dozen US states and several Canadian provinces use no-fault rules.
At a glance
No-fault system
- Your own insurer pays defined benefits first
- Fault still matters for vehicle damage and lawsuits
- Suing for pain and suffering needs a serious injury
- Benefit forms and short deadlines apply
| What differs | Fault-based system | No-fault system |
|---|---|---|
| Who pays first | The at-fault driver's insurer | Your own insurer, for set benefits |
| Role of fault | Central from day one | Secondary for initial benefits |
| Pain and suffering | Claimable against the at-fault driver | Only if you pass an injury threshold |
| Speed of payment | Can be slow while fault is disputed | Medical and wage benefits often start sooner |
| Paperwork | Liability and damages evidence | Application forms, treatment plans, deadlines |
| Where | Most US states and the UK | About a dozen US states; Canadian provinces including Ontario, Quebec, BC and Manitoba |
How no-fault works in the US
About a dozen states use no-fault auto insurance, including New York, Michigan, Florida and New Jersey. Pennsylvania lets drivers choose between full and limited tort options, and New Jersey offers a similar choice. You claim medical costs and some lost income through your own personal injury protection (PIP) coverage. To step outside the system and sue the other driver for pain and suffering, you usually need to meet a threshold, either a serious injury as defined by state law or medical bills above a set amount. Damage to your car is still usually handled on a fault basis.
Canada: province by province
Every province provides some accident benefits through auto insurance, but the right to sue differs sharply.
- Ontario: you get statutory accident benefits from your own insurer and can sue the at-fault driver for pain and suffering only if your injury meets a permanent, serious impairment threshold, with a deductible taken off the award.
- Quebec: bodily injury is covered by the public insurer on a no-fault basis, and you generally can't sue for injuries from a car accident.
- British Columbia: since May 2021, Enhanced Care provides care and income benefits through ICBC, and the right to sue at-fault drivers has been largely removed.
- Manitoba also runs a public no-fault scheme. Most other provinces are closer to a fault system with accident benefits on top.
The UK: fault-based
In the UK, you claim against the insurer of the driver who caused the crash. Most lower-value road traffic injury claims in England and Wales go through the Official Injury Claim portal. If the other driver was uninsured or can't be traced, the Motor Insurers' Bureau may compensate you instead. Your own policy may cover your car, depending on your level of cover, but your injury claim is against the other side.
Example
Two drivers from different states collide in Michigan. The injured driver's medical bills are paid through PIP rather than by the other driver's insurer. Months later, when an MRI shows a disc injury needing surgery, her lawyer assesses whether it meets Michigan's serious impairment threshold, which would let her sue the other driver for pain and suffering.
Common questions
Which states are no-fault for car insurance?
About a dozen, including New York, Michigan, Florida, New Jersey, Massachusetts, Minnesota, Hawaii, Kansas, Kentucky, North Dakota and Utah, with Pennsylvania offering a choice. Rules differ a lot between them, so check the state where the crash happened.
Can I sue the other driver in a no-fault state?
Yes, if your injury meets the state's threshold, such as a serious or permanent injury, or medical costs above a set level. You can usually also claim vehicle damage from the at-fault driver.
Is the UK a no-fault country for car accidents?
No. The UK uses a fault-based system. You claim compensation from the insurer of the driver who was to blame, and your own share of fault can reduce it.
Does no-fault mean nobody is blamed for the crash?
No. Fault is still decided. It affects vehicle damage claims, lawsuits for serious injuries and, in many places, your future premiums. No-fault only describes who pays certain benefits first.
Last reviewed September 2026. General information, not legal advice.