# Choice no-fault

> What a choice no-fault state is and how New Jersey, Pennsylvania and Kentucky let drivers pick between lawsuit limits and full rights to sue.

Canonical page: https://statecover-guide.com/glossary/choice-no-fault/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Choice no-fault is a system in which each driver decides whether to accept no-fault limits on lawsuits or keep the traditional right to sue. 3 states use it: New Jersey, Pennsylvania and Kentucky.

## How it works

In these states, your own policy pays certain injury costs first, whoever caused the crash. The choice is about your right to sue the other driver:

- **Accept the lawsuit limit.** You can sue for pain and suffering only if the injury meets the state's threshold for a serious injury. This option generally costs less.
- **Keep full rights.** You keep unrestricted rights to sue the at-fault driver, usually for a higher premium.

Pennsylvania calls these options limited tort and full tort. Its insurance department notes that limited tort offers premium savings, and that if you do not specifically choose limited tort, you are treated as having chosen full tort. In New Jersey and Kentucky, drivers may likewise reject the lawsuit threshold.

The choice you make on the form can decide what you are able to recover after a serious crash, so read the selection form and ask your agent or insurer how each option works before you sign.

## Related terms

- [No-fault insurance](https://statecover-guide.com/glossary/no-fault-insurance/)
- [Tort threshold](https://statecover-guide.com/glossary/tort-threshold/)
- [Personal injury protection](https://statecover-guide.com/glossary/personal-injury-protection/)
- [Add-on state](https://statecover-guide.com/glossary/add-on-state/)
- Guide: [No-fault vs at-fault states](https://statecover-guide.com/blog/no-fault-vs-at-fault-states/)

## Sources

- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance) — choice no-fault states and rejecting the lawsuit threshold
- [Pennsylvania Insurance Department, Auto Insurance Guide](https://www.pa.gov/content/dam/copapwp-pagov/en/insurance/documents/consumer-help-center/learn-about-insurance/auto-insurance-guide.pdf) — full tort and limited tort options