The term "no-fault" usually pertains only to coverage relating to personal injury, and does not include coverage for property damage. In states that require consumers to have a no-fault car insurance policy, as in states without no-fault insurance, the liability coverage in your auto insurance policy covers you for damages to another person's car, and you can purchase collision coverage for your own vehicle.

The Personal Injury Protection element of no-fault car insurance ensures not only that your hospital bills are paid, but that you're also covered for any associated losses. For example, if you're injured and unable to return to work for some time, your no-fault coverage may help foot the bill for lost wages. This isn't always a guarantee, and availability varies by state.

Determining whether no-fault insurance is right for you is, for most consumers, a non-issue. You're either required to have it, or you don't have access to it. Only customers in three states have the option to choose between full tort coverage and no-fault coverage. If you live in Kentucky, New Jersey or Pennsylvania and you're unsure if opting out of no-fault is the right decision, get on the phone with a qualified KSN agent to discuss your options.