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State Rules terms
Minimums, no-fault systems and reform.
Add-on stateA state where your policy includes or offers injury benefits like PIP that pay regardless of fault, with no limit on suing the at-fault driver.At-fault stateA state where the driver who caused a crash, through their liability insurance, pays for other people's injuries and property damage.Choice no-faultA system that lets drivers pick limited lawsuit rights for a lower premium or full rights to sue, used in New Jersey, Pennsylvania and Kentucky.Comparative negligenceA fault rule that reduces an injured person's recovery by their own share of blame for a crash, instead of barring recovery entirely.Contributory negligenceA strict fault rule that bars an injured person from recovering any damages if they were even slightly to blame for the crash.Electronic proof of insuranceAn insurance ID card shown on a phone or other device instead of on paper, which most states accept at traffic stops and after crashes.Financial responsibility lawA state law requiring drivers to show they can pay for injuries or damage they cause, almost always by carrying minimum liability insurance.Full tortIn 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.Insurance ID cardThe card your insurer issues showing the company, policy number, insured vehicles and coverage dates, carried as proof of insurance.Limited tortA 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.Mini-tortMichigan's rule letting a driver recover up to $3,000 from an at-fault driver for vehicle damage their own insurance did not pay, such as a deductible.Monetary thresholdIn some no-fault states, the amount of medical expenses an injured person must exceed before suing the at-fault driver for pain and suffering.No-fault insuranceA 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.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.Proof of insuranceEvidence that a vehicle meets the state's insurance requirement, usually a paper or digital ID card shown at stops, crashes and registration.Proposition 103The 1988 California ballot measure that requires approval of auto rates before use, mandates a Good Driver Discount and made the commissioner elected.Tort thresholdThe 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.Verbal thresholdA no-fault rule that lets crash victims sue for pain and suffering only if the injury fits a legal description, such as permanent injury or death.