The first application of the fault/no-fault terms is in the event of an accident or violation.  A driver is at-fault if he or she was responsible for a collision or the breaking of a state motor vehicle speed limit or law.  Being this way in an accident can add “points” to your driving record.  Eventually, those points can add up to an increase in rates or surcharges, especially if you have a bad driving history.  On the flip side, the opposite term means exactly what it says -- one or more of the drivers involved were following local laws and were not responsible for a crash or collision.  

The term no-fault is also applied to car insurance systems.  Twelve states currently operate their policies using a this kind of blameless system.  Those states include Washington, D.C., Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.  

If you live in one of these states, your auto policy will be structured differently than ones in the rest of the United States.  Rather than having to prove who is responsible in a collision, your provider will automatically cover you, and the other motorists involved will be covered by their own providers.  This means that medical treatment can commence immediately, with your own company paying for your medical expenses.  It also means that your liability policy will be used on you, rather than other drivers involved in an accident.  

Additionally, these less traditional, non-tort automobile systems put a cap on lawsuits between motorists and involved parties when person or property is damaged.  This can be a great benefit to living in one of those twelve states.  However, the lawsuit limits do not apply in every situation.  If a party to the accident sustains severe enough injuries or has medical costs in excess of a specified amount, you can still be sued for damages.  

Furthermore, no-fault systems protect drivers from uninsured or underinsured motorists, so even though these policies are more costly to carry than others, they come with an exceedingly high level of protection for drivers who are insured under this system.

In Pennsylvania and Washington, D.C., drivers can choose which sort of coverage they want, opting for traditional tort law if they prefer.  Often, the decision will come down to finances, but overall, fault-less is the best kind to have.  It is important, as always, to compare rates and quotes before accepting a policy, and to continue browsing for better deals even after you have begun using an certain carrier.  Great deals are available regardless of the type of state in which you reside!