No-fault insurance is a type of auto insurance that allows drivers to receive compensation for their injuries and damages after an accident, regardless of who was at fault. This system is designed to simplify the claims process and reduce the need for legal battles over liability. In states that implement no-fault insurance, each driver's insurance company pays for their own policyholder's medical expenses and lost wages. This can lead to quicker payments and less stress for those involved in an accident, as they do not have to prove fault to receive benefits.