If you are involved in an automobile accident and you live in a state that operates under a no-fault system, you can recover financial losses from your insurance company, regardless of fault. Although technically there are 12 states that currently operate under a no-fault system, in three of the twelve states – called “choice states,” drivers have the right to choose a policy based on either the no-fault or tort-based system. In these states (Kentucky, New Jersey, and Pennsylvania), the policyholder retains the rights for accident compensation.