Under a no-fault auto insurance system, the parties involved in the collision each file and settle claims with their respective insurance companies, regardless of who was actually at fault for the accident.  One of the most important terms in a no-fault system is Direct Compensation Property Damage, or DCPD. According to information from the Insurance Institute of Canada, “Many people believe that DCPD is a no-fault system, but in fact this is a misunderstanding—DCPD is not no-fault. You can only claim against the DCPD section of the policy to the extent that you are not at fault.” In other words, DCPD represents the part of your insurance policy that covers damage to your vehicle when you’re found not at fault for a collision. If you are found at-fault, then damage will only be covered if you have collision coverage or all-perils coverage.  If you’re found at fault, you will still need to pay your collision deductible. But your insurance company won’t need to pay for the damages to the other driver’s vehicle. Under a no-fault system, you’re entitled to receive full medical and rehabilitation benefits from your insurance company. You’re also entitled to income replacement and other benefits, depending on how serious your injuries are. This model eliminates financial compensation for pain and suffering.  The perks of driving under a no-fault system are that your claim typically gets resolved faster, which means you receive compensation sooner — and you only have to worry about dealing with one insurance company: your own. In short, it simplifies the claims process. Fault is still determined under a no-fault system, but it doesn’t affect the accident benefits you receive. It still could, however, raise your premiums.