What is the coverage focus of a "no-fault" insurance policy?

A "no-fault" insurance policy primarily focuses on covering medical expenses and lost wages for individuals involved in an accident, regardless of who was at fault. This type of insurance is designed to streamline the claims process, ensuring that victims receive prompt compensation without needing to establish liability. By bypassing the lengthy debates over fault, no-fault insurance aims to reduce the number of legal disputes and expedite the support provided to those injured.

The primary goal of no-fault insurance is to facilitate access to necessary medical care and financial recovery for lost earnings, thus alleviating some of the burden that accidents can impose on victims. It is particularly useful in scenarios where the damages may be minor or where determining fault could become complicated and contentious.

The other options focus on aspects that are not the focal point of no-fault insurance. For example, while property damage caused by the insured and claims made by third parties can be significant considerations in auto insurance, they typically do not fall under the remit of no-fault coverage, which is oriented toward the personal injuries sustained by the insured and their passengers. Similarly, reimbursement for legal fees is generally not part of the coverage under a no-fault policy, as this form of insurance aims to reduce the need for litigation rather than