What characterizes "no-fault" insurance in relation to auto accidents?

No-fault insurance is characterized by a system in which each party involved in an auto accident claims compensation from their own insurance provider, regardless of who is at fault for the incident. This approach aims to streamline the process of obtaining compensation and reduce the number of lawsuits that arise from automobile accidents, as drivers do not need to establish fault to receive payment for their damages.

In a no-fault insurance system, insured individuals typically have access to benefits for personal injuries and often certain property damages, independently of liability considerations. This structure is designed to facilitate quicker payments and help individuals receive medical and other related expenses without enduring lengthy disputes or litigation over fault.

Other options highlight aspects of car insurance that are characteristic of traditional fault-based systems, where determining liability can lead to protracted negotiations or legal actions before compensation is granted. They do not accurately reflect the core principle of the no-fault model, which is the independence of fault determination from the claims process.