How many states have compulsory no-fault systems that restrict a claimant's right to sue under tort law until a minimum threshold of damages is surpassed?

The correct answer is nine states, which have implemented compulsory no-fault systems that limit a claimant's ability to pursue legal action under tort law until certain minimum damage thresholds are met. No-fault insurance is designed to streamline the process of obtaining compensation for injuries resulting from vehicle accidents, and it generally aims to reduce litigation by precluding lawsuits for minor injuries.

In these nine states, the law mandates that individuals involved in an auto accident must first seek compensation from their own insurance, regardless of who was at fault in the incident. The intention behind this approach is to ensure that injured parties can receive prompt payment for medical expenses and lost wages without enduring the delays and costs associated with litigation. However, if the injuries or damages exceed the defined threshold, typically measured by medical expenses, income loss, or pain and suffering, the individual may then pursue a tort claim against the at-fault driver.

This system can help alleviate court congestion and support drivers by allowing quicker access to funds for recovery, while also providing an avenue for seeking further legal remedy when injuries are severe enough. The specific number of states with these laws reflects the varying degrees of adoption across the country, as not all states choose to implement no-fault insurance systems.