What characterizes a "No-Fault" insurance system?

A "No-Fault" insurance system is characterized by the provision where claims are paid by the driver's own insurer, regardless of who is at fault in an accident. This means that, following a collision, each party involved will seek compensation for their injuries and damages directly from their own insurance company rather than determining liability first. This system aims to simplify the claims process, reduce litigation related to accidents, and ensure that injured parties can receive timely medical care and financial support without waiting for fault determination.

This approach contrasts sharply with traditional liability insurance systems, where fault must be established before claims are paid. It streamlines the process and can potentially offer quicker resolutions for those involved in accidents, contributing to a more efficient insurance system overall.