Glossary

Choice no-fault

A system that lets drivers pick limited lawsuit rights for a lower premium or full rights to sue, used in New Jersey, Pennsylvania and Kentucky.

Also called: choice no-fault state, tort option, lawsuit option

Choice no-fault is a version of no-fault insurance in which each driver decides whether to accept limits on suing for pain and suffering. Drivers who accept the limits generally pay less; those who keep full lawsuit rights pay more. Either way, their own personal injury protection pays medical bills and other economic losses first, regardless of fault.

According to the Insurance Information Institute, New Jersey, Pennsylvania and Kentucky let motorists reject the lawsuit threshold and keep the right to sue. The default differs by state. New Jersey presumes applicants chose the limitation on lawsuits unless they reject it. Pennsylvania presumes full tort if the named insured does not make an election, so drivers who want limited tort must choose it. Kentucky drivers who want to keep full rights must reject the tort limitation in writing.

The choice usually binds everyone covered by the policy, including resident relatives, so it matters most for families. Saving on the premium with the limited option can leave you unable to recover for pain and suffering unless an injury meets the state's tort threshold or an exception applies. Compare the price difference and read your state's election form before you sign.

Last reviewed October 4, 2026

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Related terms

No-fault insurance A system in which your own policy pays your injury costs after a crash regardless of who caused it, with limits on suing the other driver. Limited tort A cheaper option in choice no-fault states that gives up your right to sue for pain and suffering unless an injury is serious or an exception applies. Full tort In choice no-fault states, the option that keeps your unrestricted right to sue an at-fault driver for pain and suffering, for a higher premium. Tort threshold The level of injury or medical cost a crash victim in a no-fault state must reach before suing the at-fault driver for pain and suffering. Personal injury protection (PIP) Coverage that pays medical bills, part of lost income and related costs for you and your passengers after a crash, no matter who caused it.

Related guides

Choice no-fault: New Jersey, Pennsylvania and Kentucky How New Jersey, Pennsylvania and Kentucky let drivers trade the right to sue for a lower premium, what each default is, and how to choose. No-fault vs at-fault states How no-fault and at-fault systems differ, which states use each, the lawsuit thresholds in no-fault states, and what it means for your claim. Personal injury protection (PIP) explained PIP pays your medical bills and lost income after a crash no matter who caused it. Which states require it, how much they require and how claims work.

Related insurers

Kentucky Farm Bureau Insurance Kentucky-only mutual tied to the state Farm Bureau, selling auto, home and farm coverage through agents in all 120 counties since 1943. NJM Insurance West Trenton, New Jersey insurer founded in 1913 that sells auto insurance direct in five Mid-Atlantic states and tops J.D. Power claims rankings. Palisades (Plymouth Rock Assurance in New Jersey) New Jersey reciprocal insurance group, managed by Plymouth Rock, that underwrites Plymouth Rock Assurance auto policies in NJ, PA, NY and CT.