Which statement defines no-fault insurance accurately?

No-fault insurance is designed to provide prompt compensation to policyholders for certain types of losses, particularly medical expenses, without the need for determining fault in an accident. This type of insurance focuses on ensuring that individuals receive benefits quickly, irrespective of who caused the accident. As such, it streamlines the claims process and reduces the burden on the legal system, allowing injured parties to get necessary medical treatment and support without the delays that come with fault determination.

In contrast, other choices emphasize conditions or requirements that are contrary to the fundamental principle of no-fault insurance. For instance, policies that require the insured to sue the responsible party or only cover damages if the policyholder is at fault don't align with the no-fault philosophy. Similar reasoning applies to choices that focus on vehicle repairs, as those elements may pertain to different types of coverage but are not a characteristic of no-fault insurance itself.