What does a no-fault insurance system allow insured individuals to do?

A no-fault insurance system is designed to streamline the process of receiving compensation for losses resulting from an accident, regardless of who was at fault. This system allows insured individuals to receive compensation for their medical expenses, lost wages, and other related costs without needing to prove that another party was responsible for the accident.

This feature significantly reduces the burden of litigation and simplifies claims handling, as individuals can access benefits quickly and efficiently without the necessity of protracted legal battles to establish fault. In this context, individuals benefit by having quicker access to their insurance coverage, which can be crucial in times of injury or financial stress.

The other choices focus on aspects that are not typically associated with no-fault insurance. Claims for third-party negligence are generally tied to fault-based systems, as is the ability to seek punitive damages, which are awarded in a different context where wrongdoing needs to be established. Negotiating settlements usually presumes an adversarial process, which contradicts the no-fault principle aimed at minimizing disputes over liability.