What does "no-fault" insurance mean in the context of automobile coverage?

The concept of "no-fault" insurance in automobile coverage refers to a type of insurance arrangement in which medical expenses and certain other costs arising from an automobile accident are covered without regard to which party is at fault for the incident. This means that, regardless of who caused the accident, each driver's insurance company pays for their own policyholder's medical expenses and related costs.

This approach is designed to streamline the process of obtaining medical care after an accident and to reduce the volume of litigation that can arise from disputes over fault. Consequently, it lessens the burden on the court system and promotes quicker recovery for individuals injured in accidents.

In contrast, other options introduce restrictions or misunderstandings about how coverage works. Some options suggest conditions of fault or limitations on what types of damage are covered, which misrepresent the fundamental principle of no-fault insurance that prioritizes prompt medical coverage over fault determination.