What does 'no-fault insurance' allow for insured individuals?

No-fault insurance is a system designed to streamline the claims process following an accident. It allows insured individuals to receive compensation for their losses, such as medical expenses and lost wages, without having to establish fault in the accident. This means that regardless of who caused the accident, each party can receive payment for their expenses from their own insurance provider.

This approach can help reduce disputes and litigation related to determining fault, allowing for quicker access to necessary funds following an accident. The primary goal is to ensure that individuals can recover from the financial impact of an accident without the added stress of determining liability, which can often complicate and extend the process of receiving care and compensation.

In contrast, options that suggest compensation based on fault or limitation based on driving records do not align with the fundamental principle of no-fault insurance, which focuses on providing coverage without fault determination.