Glossary
Monetary threshold
In some no-fault states, the amount of medical expenses an injured person must exceed before suing the at-fault driver for pain and suffering.
Also called: dollar threshold, medical expense threshold
A monetary threshold is a type of tort threshold expressed in dollars. In a no-fault state that uses one, your own personal injury protection pays your medical bills and lost income after a crash, and you can sue the at-fault driver for noneconomic damages, such as pain and suffering, only if your medical expenses pass the set amount. Most of these states also allow a suit for certain serious injuries, such as death or permanent disfigurement, regardless of cost.
According to the Insurance Information Institute, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah use monetary thresholds. The amounts differ: Utah's threshold is more than $3,000 in medical expenses, and in Hawaii you can sue once PIP benefits paid reach $5,000. Example: in a state with a $3,000 threshold, a driver with $2,400 in treatment is limited to PIP benefits, while a driver with $6,000 in treatment can also sue for pain and suffering (hypothetical figures).
Critics say monetary thresholds can encourage extra medical treatment to cross the line, which is one reason some states use a verbal threshold instead. Thresholds apply only to injury claims; vehicle damage is handled under ordinary fault rules in most states. See no-fault vs at-fault states.
Last reviewed October 4, 2026