What is no-fault insurance?

No-fault insurance is defined as a type of auto insurance that pays for injury-related expenses regardless of which party is at fault in an accident. This means that if an accident occurs, each driver’s insurance company will cover their own insured’s medical expenses and other related costs without needing to establish who caused the accident. The primary goal of no-fault insurance systems is to reduce the need for litigation and make it easier for individuals to receive compensation for their injuries promptly.

In this system, policyholders can typically file claims directly with their own insurance providers, which streamlines the process of receiving necessary medical care and eliminates some of the adversarial nature of traditional fault-based systems. By allowing faster access to benefits and reducing the need to prove fault, no-fault insurance aims to minimize delays and disputes following an accident.

The other definitions provided do not capture the essence of no-fault insurance. Some details may include requiring fault determination, which runs contrary to the core principle of no-fault insurance, focusing instead on expediting care and reducing legal issues.