What does the term 'no-fault insurance' mean in the context of auto insurance?

The term 'no-fault insurance' refers to a system in which insurance claims can be processed without the necessity of determining who is at fault in an accident. This is a significant aspect of certain auto insurance models designed to simplify the claims process and reduce the burden on the court system. In a no-fault system, individuals involved in an auto accident typically file claims with their own insurance company, regardless of who caused the accident. This approach aims to expedite compensation for medical expenses and other losses while minimizing delays and disputes that can arise from establishing fault.

This model is intended to create a more efficient system for handling claims, allowing victims to receive medical benefits and other compensations quickly, without getting tangled in lengthy legal battles. It also encourages more direct communication and cooperation between insurance companies and policyholders.

In contrast, the other options do not accurately depict the no-fault insurance system. While option A implies all drivers are considered responsible, no-fault insurance specifically avoids assigning blame to expedite claims. Option B suggests that the insured can only claim damages from their own policy, but claims can also cover certain losses from another driver if injuries are severe under some no-fault systems. Option D incorrectly states that it allows unlimited claims for accidents, whereas no-fault