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Is no-fault insurance optional? No-fault insurance is mandatory in 18 states. Importantly, some states require that medical expenses incurred in the accident are covered by medical payments insurance (or med pay), not no-fault insurance. Here are a few things no-fault insurance may cover for no-fault policy owners and their passengers:
No-Fault Insurance, Basic Reparation Benefits. Or. Personal Injury Protection (PIP) No-Fault Insurance, Basic Reparations Benefits and Personal Injury Protection. (PIP) are different terms for the same type of insurance coverage. Kentucky is a âNo-. Faultâ state. This does not mean that it doesnât matter whose fault the car accident is. What this does mean is that you may buy insurance that will pay for your medical bills. and lost wages if you are in an accident.