What does a 'No Fault' automobile accident insurance policy limit the insured to?

A 'No Fault' automobile accident insurance policy is designed to streamline the process of claims and compensation in the event of an accident. With this type of policy, the insured is primarily limited to receiving loss compensation from their own insurance company regardless of who is deemed to be at fault for the accident. This means that individuals can file claims directly with their own insurer for medical expenses, lost wages, and other damages without needing to establish fault.

The intent behind this system is to reduce the need for extensive legal disputes and to ensure that individuals receive timely medical care and financial support after an accident. It also helps to relieve the court system from the burden of these cases, as each party is compensated by their own insurer rather than pursuing claims against each other.

In contrast to a 'No Fault' policy, other options like pursuing claims against another party's insurance or claims from any insurance company are not applicable since the 'No Fault' system specifically restricts such actions in favor of direct compensation from one's own insurer.