No-Fault Systems: In states that have statutorily established a “no-fault” system of liability for negligence, each person’s own insurance company pays for his or her injury or damage, regardless of who is at fault. No-fault insurance liability coverage does not apportion damages or fault. However, it usually does not cover damage to the automobile, and separate collision coverage is needed. In states with no fault systems, individuals may file suit only if certain threshold injuries have occurred or damages exceed insurance coverages.