Usually it is clear who is at fault for an automobile accident, but occasionally the circumstances are murky and authorities have a difficult time assigning blame. When that happens, insurance companies tend to wait until fault is established, which means it could take months for you to be paid for a claim.

No-fault insurance is designed to cover that kind of situation. Under no-fault coverage, your insurance company pays you whether you were at fault or not. However, no-fault insurance typically only pays for medical bills, lost wages, and in some cases funeral expenses. Property damage is typically not covered under a no-fault insurance policy but may be covered under other provisions of your policy.

Think of no-fault insurance as additional coverage that can kick in if the responsibility for an accident is unclear or difficult to prove. You can still pursue a liability claim, but in the meantime at least some of your expenses will be covered.