What is "no-fault" coverage primarily used for?

No-fault coverage is primarily designed to cover medical expenses and lost wages for individuals injured in an automobile accident, irrespective of who is at fault for the incident. This type of coverage aims to streamline the process of receiving benefits for injuries, allowing for quicker access to necessary medical care and financial support without the need for lengthy fault determination processes that can often delay compensation.

The focus of no-fault systems is to provide immediate assistance to injured parties, which can lead to less strain on the judicial system by reducing the number of lawsuits filed over minor accidents. By promoting a system where individuals can recover their costs from their own insurance company, no-fault coverage helps facilitate more efficient handling of claims related to personal injuries arising from automobile incidents.

Other options do not align with the primary purpose of no-fault coverage: covering vehicle damage typically requires liability insurance or collision coverage, legal defense in accidents is addressed through liability protection, and theft protection pertains to comprehensive coverage, which operates outside the scope of no-fault insurance provisions.