In a no-fault insurance system, who pays for damages after an accident?

In a no-fault insurance system, each driver's own insurance company covers their damages after an accident, regardless of who was at fault. This system is designed to simplify the claims process and reduce litigation by allowing policyholders to receive compensation directly from their insurer for medical expenses, lost wages, and other related costs following an accident without having to prove fault.

Consequently, the driver who incurred the damages will have their own insurance pay for those losses. This approach helps ensure quick and efficient compensation, which can be particularly beneficial in situations where determining fault could be complex or contentious.

While other options may introduce various scenarios regarding fault and damage payments, in a no-fault context, it’s the individual coverage that primarily comes into play, allowing drivers to bypass longer legal processes tied to fault determination.