Tort vs No-Fault vs Choice Auto Insurance

U.S. states organize auto insurance rules under three broad frameworks:

1. Tort (traditional fault-based) states
2. No-fault states
3. Choice no-fault states

1. Tort States

In tort states, the at-fault driver and their insurer are generally responsible for paying for injuries and property damage. Injured parties can bring liability claims and, subject to state law, lawsuits against the at-fault driver.

Minimum required coverages usually include:

• Bodily injury liability (BI)
• Property damage liability (PD)

2. No-Fault States

In no-fault states, most minor injury claims are first handled by each driver’s own Personal Injury Protection (PIP) coverage, regardless of who caused the accident.

Key features:

• Mandatory PIP coverage in most no-fault states
• Lawsuits typically restricted to serious injuries or above certain thresholds
• Ongoing debate about cost vs. consumer protection

3. Choice No-Fault States

In choice no-fault states, drivers can select between:

• A no-fault option (often with PIP and limits on certain lawsuits), or
• A more traditional tort option, preserving broader rights to sue.

The ru3.us datasets do not classify states directly into these categories, but the PIP / No-Fault and UM/UIM datasets provide structured clues on:

• Which states explicitly require PIP
• How PIP and no-fault benefits appear in the reference
• Where UM/UIM is mandatory

For structured state-level requirements:

• PIP / No-Fault dataset → /datasets/state-pip-no-fault-coverage
• UM/UIM dataset → /datasets/state-um-uim-minimum-coverage