What is a "no-fault" insurance system?

A "no-fault" insurance system is defined as a framework where each party involved in an accident turns to their own insurance provider to cover their losses, regardless of who was at fault for the accident. This system is designed to streamline the claims process and reduce the need for legal action, as it minimizes disputes over liability. By focusing on the insured's own policy, it helps ensure that individuals have quicker access to benefits such as medical expenses and vehicle repairs without waiting to establish fault.

In contrast, a requirement for police involvement for all claims would not align with the principles of a no-fault system, which prioritizes direct settlements between insurers. Similarly, a model that limits coverage solely to medical expenses does not capture the broader implications of no-fault insurance, which typically applies to various aspects of loss resulting from an accident. Lastly, limiting claims to one per event does not reflect the nature of no-fault insurance, which allows each insured party to file claims independently based on their policy terms.