ABA Family Legal Guide

Automobiles

Accidents and Insurance

Insurance

What is no-fault insurance?

Under no-fault insurance, which is usually compulsory, insurance carriers compensate their own policyholders for medical and other costs associated with automobile accidents. This type of insurance is designed to protect you, any passengers in your car, and any pedestrian you may injure, without having to enter a court of law to determine who is at fault for the accident. Most no-fault statutes apply only to bodily injury claims, and do not encompass property damage claims.