In a no-fault system of auto insurance, what is a key characteristic?

In a no-fault system of auto insurance, a key characteristic is that all parties involved in an accident are covered by their own insurance, regardless of who caused the accident. This system is designed to streamline the process of claims and reduce the need for litigation, allowing victims to receive compensation for medical costs and other damages directly from their own insurance company. This means that individuals do not have to prove fault before receiving benefits, which can significantly speed up the claims process and minimize legal disputes.

In contrast to other systems where victims may have the right to sue for damages or must establish another party's fault to receive compensation, a no-fault approach simplifies the situation by ensuring that all parties can access coverage through their own insurers, fostering a less adversarial environment and promoting quicker resolutions to claims.