No-Fault Insurance in some states insurance companies are legally required to pay a policyholder's covered losses, regardless of who was responsible for an accident. This coverage is subject to the terms, limits and conditions of the policy contract and may pay for medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident.
No-fault insurance is a tort reform proposal in which the injured person collects benefits from his or her insurer and does not have to sue a negligent third party who caused the accident and prove legal liability.