Which statement best describes "no-fault insurance"?

No-fault insurance is designed to provide coverage for an insured's losses without having to establish who is at fault in an accident. This means that if an individual is involved in an accident, they can file a claim with their own insurance company to receive compensation for their incurred losses, such as medical expenses and lost wages, regardless of whether they caused the accident or not.

This type of insurance aims to streamline the claims process and reduce the need for legal disputes over fault determination. By allowing claims to be handled quickly and with less friction, no-fault insurance can help ensure that injured parties receive timely assistance without the additional stress of legal battles. This model is particularly useful in personal injury cases where determining fault can become complicated, potentially delaying benefits.

In contrast, other options describe different insurance arrangements or features that do not align with the fundamental principles of no-fault coverage. While some insurance policies may include deductibles or focus on specific types of accidents or only pay if the insured is at fault, these characteristics do not reflect the essence of no-fault insurance, which is characterized by its unconditional approach to claims relative to fault.