Which type of insurance covers costs irrespective of who caused an accident?

No-fault insurance is designed to cover medical expenses and other costs related to car accidents regardless of who is at fault for the incident. This type of insurance is particularly beneficial in situations where determining fault can be complex or contentious, as it ensures that injured parties receive timely compensation for their medical bills and other losses without the delay typically associated with fault determination.

In most no-fault systems, each driver's own insurance company pays for their losses up to a certain limit, which reduces the need for litigation and speeds up the claims process. This also promotes a more efficient resolution of claims, as it allows individuals to receive necessary medical care without waiting for a determination of fault, which is particularly advantageous in states like New York where no-fault insurance laws apply.

The other types of insurance—liability, comprehensive, and collision—do not provide the same immediate benefits regardless of fault. Liability insurance covers damages or injuries to third parties for which you are responsible, comprehensive insurance covers non-collision-related incidents like theft or natural disasters, and collision insurance covers damage to your own vehicle resulting from a collision.