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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:
You wonât have to pay the deductible. If you have no-fault insurance, however, your insurance company will pay for your repairs regardless of fault. Some states require drivers to carry no-fault insurance. All U.S. states require car owners to carry a minimum amount of liability insurance.f the accident was your fault, your collision insurance will pay for damages to your vehicle and your liability insurance will pay for damages to the other driverâs vehicle, up to the limits of your policy.