What defines no-fault insurance?

No-fault insurance is characterized by its provision of benefits to policyholders for their own injuries, without regard to who was at fault for the accident that caused those injuries. This system is designed to streamline claims processing and reduce litigation by ensuring that individuals receive prompt medical attention and benefits irrespective of liability.

This type of insurance primarily addresses personal injury claims, allowing insured parties to recover their medical expenses and related costs directly from their own insurance provider. This contrasts with traditional liability systems, where a claimant must prove the fault of another party to receive compensation for their injuries.

In the context of the other choices, the aspects defining those options deviate from the central premise of no-fault insurance. While the compensation for property damage is relevant to auto insurance, it does not align with the specific definition of no-fault insurance, which focuses on personal injury. Furthermore, the specificity of some choices—such as the optional nature of no-fault insurance across different states or its application solely in hit-and-run situations—does not pertain to the fundamental definition of no-fault insurance and its core benefits of personal injury protection.