![]() Three states have a "choice" no-fault law. The other seven states-Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah-use a monetary threshold. Florida, Michigan, New Jersey, New York and Pennsylvania have verbal thresholds. Twelve states and Puerto Rico have no-fault auto insurance laws. However, in some states the verbal threshold has been eroded over time by broad judicial interpretation of the verbal threshold language, and PIP coverage has become the target of abuse and fraud by dishonest doctors and clinics that bill for unnecessary and expensive medical procedures, pushing up costs. Verbal thresholds eliminate the incentive to inflate claims that may exist when there is a dollar "target" for medical expenses. Because high threshold no-fault systems restrict litigation, they tend to reduce costs and delays in paying claims. Some laws also include minimum requirements for the days of disability incurred as a result of the accident. ![]() They may be expressed in verbal terms (a descriptive or verbal threshold) or in dollar amounts of medical bills, a monetary threshold. These conditions, known as a threshold, relate to the severity of injury. Under no-fault laws, motorists may sue for severe injuries and for pain and suffering only if the case meets certain conditions. In its strictest form, the term no-fault applies only to state laws that both provide for the payment of no-fault first-party benefits and restrict the right to sue, the so-called “limited tort” option. In states with no-fault laws, all drivers are required to purchase personal injury protection (PIP), as part of their auto insurance policies. No-fault auto insurance laws require every driver to file a claim with their own insurance company after an accident, regardless of who was at fault.
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