In no-fault states, insurance companies recover a policy-holder's financial losses whether he/she is at fault or not. Even if personal injury protection is not mandatory in your state, you may still want to consider purchasing the insurance policies. If you can afford to leave a large bond it may save you a lot of money to do so. On the other hand, no-fault policies pay immediately (to an extent) and then work with the insurance companies that are involved to ensure that the correct party pays them back. As thresholds change, so will the process of settling insurance claims. How much insurance policies you need depends, mainly, on your age. Many elements of an auto insurance policy that could be optional are cover for the uninsured motorist and personal injury protection. Keith Understrom works in the insurance industry and runs a free insurance information website as an information resource. The driver who hit did not have liability auto insurance. You would have to sue the driver responsible in order to get bodily injury payment, and suing is no guarantee that you'll ever see compensation. Florida, for example, is repealing their "no-fault" status in 2007, if legislation doesn't change before that time. Some of these elements are required by all states whilst others are not required. Bodily injury and personal property insurance are required by all U.S. Policyholders in add-on states receives reimbursement for their losses from their own insurance company, but they are also allowed to sue the other policyholder at fault in the accident without restrictions. If you live in a tort state, for example, and are involved in an accident that is not your fault, you have a choice to either let your insurance company fix it, or you can require the other driver's car insurance to handle the details, in effect freeing yourself from the hassle of having to report the accident to your insurance company and paying the deductible. In no-fault states, insurance companies recover a policy-holder's financial losses whether he/she is at fault or not. A common misconception of no-fault insurance is that you can drive how you wish without fear of taking responsibility for your mistakes. How much insurance policies you need depends, mainly, on your age. Kentucky, New Jersey, and Pennsylvania use the choice no fault system. If you are middle-aged or older, have good health and liability insurance policies, then you will need minimal personal injury protection insurance policies. Let's look at the main kinds of cover and attempt to throw a little light on the subject. If, on the other hand, you are young, just starting out and still dont have much in the way of health and liability insurance, you will want to protect yourself, your family and your future by carrying as much insurance as you can afford. Carrying personal injury protection is mandatory in: Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah. Personal injury protection is a no-fault policy, so it will cover you and your passengers, even if the reason for claim was your fault. In states that use the no fault insurance system of auto insurance, each insurer pays its own policyholders for minor injuries regardless of who was at fault in the accident. Even if personal injury protection is not mandatory in your state, you may still want to consider purchasing the insurance policies. Florida, for example, is repealing their "no-fault" status in 2007, if legislation doesn't change before that time. Do you carry passengers on a regular basis? While your health insurance might cover your own medical expenses, it wont cover those of your passengers (unless they are members of your family who are on your health plan). By setting this limit, insurance companies are cutting down on the time and expense of un-necessary lawsuits and consumer greed. This will mean that on a longer hire you will save a lot of money knowing that your insurance will cover any loss of excess/bond from an accident while on your vacation. Even if personal injury protection is not mandatory in your state, you may still want to consider purchasing the insurance policies.