What is the key characteristic of "no-fault insurance"?

The key characteristic of "no-fault insurance" is that it allows insured individuals to collect from their own insurance provider regardless of who is at fault in an accident. This system is designed to simplify the claims process and reduce the need for litigation, as each party's insurance pays for their own damages and medical expenses without regard to fault. This can make it easier for injured parties to access benefits quickly, as they do not need to prove another party's negligence to receive compensation.

The other options do not accurately capture the essence of no-fault insurance. For instance, the idea that benefits are only collected if individuals are not at fault contradicts the fundamental principle of no-fault systems. Similarly, while no-fault insurance does provide for damages incurred by both parties, it doesn’t pay for damages across both parties' insurance companies; instead, each party's insurance handles its own claims independently. Also, limiting coverage to only medical expenses ignores the broad range of benefits that may be available in no-fault policies, which can include lost wages and other related expenses. Overall, the distinctive feature of allowing individuals to claim from their own insurance without assessing fault is what sets no-fault insurance apart.