What type of claims does "no-fault insurance" remove from the equation?

No-fault insurance fundamentally alters the way claims are processed after an automobile accident by focusing on the individual’s own insurance rather than determining liability or fault among the parties involved. In a no-fault insurance system, each driver’s insurance company pays for their own insured's medical expenses, lost wages, and other similar costs, regardless of who caused the accident.

This system aims to streamline the claims process and reduce litigation by eliminating the need to establish which party was at fault. As a result, claims based on who is liable for the accident are largely removed from the decision-making process. This can lead to quicker access to benefits for those injured in accidents and reduces the contentious nature of discussions regarding fault that can often delay compensation.

By focusing on prompt compensation rather than legal blame, no-fault insurance is designed to enhance efficiency and reduce the burden on the judicial system that arises from disputed liability claims.