When it comes to auto insurance, the term “no-fault” can be confusing. Despite its name, no-fault does not actually mean no-blame. So what is no-fault insurance and how does it work?

If you are injured or your vehicle is damaged in a driving incident, you deal with your own insurance company, no matter who is at fault. By going through your own insurer, you can receive the help you need immediately. And there’s no waiting for the insurance companies to determine who was to blame before paying benefits.

Here’s what else you need to know about no-fault insurance:

• Insurance companies assign fault for each driver by percentage. If you’re not at fault, you’ll rank zero per cent. Someone who caused the incident will rank 100 per cent. Sometimes both drivers are partially at fault and share the responsibility.
  
  
• If it’s determined that you are fully or partly at fault, it will go on your driving record and your insurance premium will reflect the change on renewal.
  
  
• All of Canada has some form of no-fault insurance. But whether people can sue for further damages depends on the province or territory.

What’s the best way to avoid collisions and the financial and emotional aftermath? Drive safely! Find out more about auto insurance and get some safe driving tips from The Co-operators.