If you’ve ever been in a car accident in a no-fault state, one question likely popped into your mind:
“Does no-fault insurance cover car damage?”
The short answer is no, but there’s a lot more to it.
Understanding what no-fault insurance does — and does not — cover is crucial for every driver. In this blog, we’ll break it all down: how no-fault coverage works, what it covers (and what it doesn’t), and what types of insurance do cover your vehicle damage.
Let’s simplify it all for you.
Quick Answer: No, No-Fault Insurance Does Not Cover Car Damage
No-fault insurance, also known as Personal Injury Protection (PIP), only covers injuries and related costs after a crash — regardless of who caused it. It does not cover:
- Damage to your own vehicle
- Damage to someone else’s vehicle
- Property damage (like hitting a fence or mailbox)
To protect your car, you’ll need additional coverage like:
- Collision insurance
- Comprehensive insurance
- Uninsured motorist property damage (UMPD)
What Exactly Is No-Fault Insurance?
No-fault insurance is required in 12 U.S. states as of 2025. It is designed to:
- Speed up medical claims
- Reduce lawsuits
- Cover injury-related costs for you and your passengers
No-Fault Insurance Covers:
- Emergency medical treatment
- Lost wages due to injury
- Funeral expenses (in case of death)
- Rehabilitation or physical therapy
- Some home care or household help
No-Fault Insurance Does NOT Cover:
- Vehicle repairs or replacement
- Damage to another person’s car
- Vehicle theft or vandalism
- Damage caused by natural disasters
Which States Require No-Fault Insurance?
As of 2025, these 12 states follow no-fault laws:
| No-Fault States |
| Florida |
| Michigan |
| New York |
| New Jersey |
| Pennsylvania |
| Massachusetts |
| Minnesota |
| Hawaii |
| Kentucky |
| Kansas |
| North Dakota |
| Utah |
Each of these states requires drivers to carry Personal Injury Protection (PIP) as part of their auto insurance policy.
What Covers Your Car’s Damage in a No-Fault State?
To cover your vehicle in a crash — even if you’re at fault — you’ll need the following:
1. Collision Coverage
Covers damage to your car after:
- A collision with another car
- A single-car accident (e.g., hitting a pole)
- Rolling or flipping your vehicle
📌 This is the most direct way to protect your own car in any accident.
2. Comprehensive Coverage
Covers non-collision damage like:
- Theft
- Vandalism
- Fire
- Hail
- Flooding
- Falling objects (like trees)
📌 Required if your car is leased or financed.
3. Property Damage Liability (PDL)
Pays for damage you cause to someone else’s vehicle or property in an accident. It does not cover your own car.
4. Uninsured Motorist Property Damage (UMPD)
Covers your car if an uninsured driver hits you and you don’t have collision insurance.
Not available in every state.
Real-Life Example: What Happens in a No-Fault Crash?
Imagine you live in New York (a no-fault state) and you rear-end someone:
- Your PIP covers your injuries
- Their PIP covers their injuries
- Your car damage? You’ll need collision coverage to pay for repairs
- Their car damage? Your property damage liability coverage pays
Coverage Breakdown Table
| Type of Damage | Covered by PIP? | Covered by Collision? | Covered by Liability? |
| Your medical bills | ✅ Yes | ❌ No | ❌ No |
| Passenger injuries | ✅ Yes | ❌ No | ❌ No |
| Your car damage (your fault) | ❌ No | ✅ Yes | ❌ No |
| Other driver’s car damage | ❌ No | ❌ No | ✅ Yes |
| Car stolen or vandalized | ❌ No | ❌ No | ❌ No (Use Comprehensive) |
How Much Do These Coverages Cost?
Here’s an estimate of average monthly costs in 2025:
| Coverage Type | Monthly Cost (Est.) |
| Personal Injury Protection (PIP) | $25–$65 |
| Collision Insurance | $50–$130 |
| Comprehensive Insurance | $30–$100 |
| Liability Insurance | $40–$120 |
Actual rates depend on your state, age, driving history, and vehicle model.
Why Doesn’t No-Fault Cover Car Repairs?
No-fault laws are focused on human injuries, not property damage. Lawmakers created the system to:
- Reduce the number of lawsuits
- Make it easier for injured people to get paid
- Lower the burden on courts
If vehicle repairs were included, it would complicate the process and defeat the purpose of no-fault laws.
Risks of Relying on PIP Alone
If you only carry PIP and minimal liability insurance, here’s what could go wrong:
- You’ll pay out of pocket for your car repairs
- You won’t be covered for theft or weather damage
- If you hit a luxury car, your liability limits might not be enough
- You may face lawsuits for uncovered damages
Smart Insurance Strategy in a No-Fault State
To stay fully protected, here’s what we recommend:
Minimum Required:
- PIP (as required by your state)
- Property Damage Liability
Strongly Recommended:
- Collision Coverage (for your car repairs)
- Comprehensive Coverage (for non-collision risks)
- Uninsured/Underinsured Motorist Coverage
Optional:
- Gap insurance (if you’re financing a car)
- Roadside assistance or rental reimbursement
What Happens if You’re Not at Fault?
In a no-fault state, your insurance still covers your injuries, but when it comes to car repairs:
- If you have collision coverage, your insurer pays, and may later seek reimbursement.
- If you don’t have collision, you may need to file a lawsuit if injuries are severe or costs exceed thresholds.
How to Save on Car Insurance in a No-Fault State
Even with PIP and higher costs, you can reduce your bill by:
- Choosing a higher deductible
- Using a telematics program (safe driving apps)
- Bundling auto with home/renters insurance
- Maintaining a clean driving record
- Avoiding unnecessary add-ons
Comparing quotes on sites like AliasInsurance.com
Pros and Cons of No-Fault Insurance (Recap)
Pros:
- Faster medical claims
- Less legal hassle
- Coverage regardless of fault
Cons:
- Doesn’t cover car repairs
- Higher insurance premiums
- Limited ability to sue
- Need extra coverage for full protection
FAQs: No-Fault and Car Damage
No. PIP only covers injury-related costs, not repairs or vehicle replacement.
If you have collision coverage, your insurer may pay the actual cash value of your car (minus deductible). If you don’t, you’ll pay the full cost yourself.
Yes — if you want your car covered after an accident, even one you caused.
If you don’t have collision or UMPD coverage, you may be stuck paying out of pocket.
Final Thoughts: What You Really Need to Know
No-fault insurance (PIP) is helpful — but it does not cover car damage. To protect your vehicle, especially in a no-fault state, you’ll need collision and comprehensive coverage in addition to your mandatory PIP.
Skipping these could leave you financially exposed after an accident.
Want to compare affordable full coverage quotes that include PIP, collision, and comprehensive?
👉 Visit Alias Insurance today to compare car insurance quotes from top U.S. providers. Whether you live in Florida, Michigan, or New York, you can find the best coverage options at a price that fits your budget — all without the guesswork.
