No-Fault Insurance: defined
Whether it’s your fault or not that you rammed into someone’s car, someone’s supposed to pay. With the help of No-fault insurance, everything’s going to be settled appropriately.
No-fault insurance is a type of automobile insurance where the insured person is indemnified by the insurer regardless of his fault in the car incident. An indemnity by the way is a payment given by A to B through compensation for a specific loss suffered by B. A, as the indemnifying party may or may not be responsible for the loss or damage suffered by B, the indemnified party. The term technically refers only to provincial or state laws that allow recuperation of direct injure and limit the right of the insured to take legal action at the same time. But there are times when the term is also functional to any policy form that allows a policy holder to be compensated by their own insurer no matter the proof of liability is.
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