What is No Fault Insurance?

No fault insurance is a type of automobile coverage requiring the policy holder’s insurer to pay despite the party at fault. This type of insurance is aimed at reducing the time it takes for the insurer to determine who is at fault and issuing payment. It also enables insurers to offer cheaper premiums as they are not spending a tremendous amount of time in costly litigation to determine fault. No fault insurance is adopted on a state by state basis and not all states have this type coverage.