Glossary

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.

Also called: lawsuit threshold, no-fault threshold, injury threshold

A tort threshold is the line, set by a no-fault state's law, between injuries handled only by your own personal injury protection and injuries serious enough to justify a lawsuit. Below the threshold, you cannot sue the at-fault driver for noneconomic damages such as pain and suffering; above it, you can.

There are two kinds. A verbal threshold describes qualifying injuries in words, such as death, significant permanent injury, serious disfigurement or serious impairment of a body function; according to the Insurance Information Institute, Florida, Michigan, New Jersey, New York and Pennsylvania use one. A monetary threshold sets a dollar amount of medical expenses; Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah use one. In Hawaii, for example, you can sue after $5,000 in PIP benefits, and Utah's threshold is more than $3,000 in medical bills or certain serious injuries such as a broken bone.

Example: in a state with a $3,000 threshold, a driver with $1,800 of treatment for whiplash recovers through PIP only, while a driver with $9,000 of treatment can also sue for pain and suffering (hypothetical figures). In choice no-fault states, the threshold applies only to drivers who chose the limited option. See no-fault vs at-fault states.

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. Verbal threshold A 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. 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. 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. 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. 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.

Related guides

Michigan's no-fault reform explained What Michigan's 2019 auto insurance law changed: PIP choice levels, a Medicare-based medical fee schedule, a smaller MCCA fee and limits on rating factors. 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.