A "no-fault" insurance state is a state
where each automobile driver (and his or her insurance company) must
pay for their own costs in a car accident, regardless of who was
responsible for the crash. According to "Get a Financial
Life" (Simon & Schuster), "Even if you live in a
no-fault state, you still need liability insurance. That's because
each no-fault state has a threshold above which a person who causes
an accident can be sued. For example, in some no-fault states a
driver can be sued if he causes severe physical injury to another
driver." In addition, many states require drivers to purchase
liability protection.