What does no-fault insurance cover?

No-fault insurance covers the insured person's losses, such as medical expenses and lost wages, regardless of who is at fault in an accident. This system is designed to streamline the claims process, allowing injured parties to receive compensation from their own insurance provider without needing to prove fault in the accident. It helps avoid lengthy legal battles and ensures that individuals can quickly access the care and financial support they need after an accident.

In this context, the other options do not accurately describe how no-fault insurance operates. Splitting costs between parties typically falls under liability coverage, while passing expenses to the state is not a function of no-fault insurance. Additionally, while some insurance policies do require deductibles, no-fault insurance itself is fundamentally about providing coverage without assigning blame.