If your state allows you to choose between no fault and traditional tort liability insurance, gaining an understanding of automobile liability and tort law will help you determine the best choice for your protection. Regardless of your state's laws, the damages of auto accidents can be costly, especially if you're unprepared for the legal repercussions. No Fault and Liability Insurance and Tort Law No fault insurance policies aren't concerned with accountability in the event of an accident. With a no fault policy, your insurance company will pay for your damages up to your predetermined limit regardless of who was at fault. States that hold no fault insurance systems generally put limitations on your ability to bring a lawsuit against another driver for damages. Liability insurance policies are concerned with negligence and tort law. In a traditional tort liability system, the driver who is at fault in an accident is forced to make payment for damages. These systems don't inhibit your ability to sue and seek additional compensation. Criticism of No Fault Insurance Critics assert that no fault insurance programs don't sufficiently discipline reckless and negligent drivers. Typically, the only repercussion if you're involved in an accident while under a no fault policy is that your premiums will increase. Because you're considered a greater risk for providers, you'll need to pay more money for coverage over the life of your policy. Opponents of no fault insurance say that obvious victims in accidents are often unable to adequately seek restitution though civil court. Tort Laws by State States with no fault insurance systems include: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Washington D.C. Some of these states, like Kentucky and New Jersey, allow you to choose between no fault and liability policies. The remaining US states have traditional tort liability systems. In a tort system, no restriction is placed on the amount of money you're allowed to seek under pain and suffering claims. Disputes and Court Cases Over 90 percent of all automobile-related cases are settled before a lawsuit is filed, and the majority of the disputes that do make it to court are settled outside of the courtroom (Rocky Mountain Insurance Information Association, 2010). The Federal Tort Claims Act allows the federal government to be held accountable in certain tort lawsuits.