Which statement about a no-fault auto insurance system is false?

In a no-fault auto insurance system, the primary objective is to provide prompt compensation to injured parties without the need for determining fault. This means that individuals involved in an auto accident will typically seek damages from their own insurance company, regardless of who caused the accident.

The statement regarding no-fault benefits compensating for pain and suffering is false because, in most no-fault systems, compensation is limited primarily to economic damages, such as medical expenses and lost wages. Pain and suffering is often not covered unless certain criteria are met, such as exceeding a specific threshold for injury severity. This limitation is a fundamental aspect of no-fault systems, which aim to reduce litigation and expedite claims processing.

The other statements reflect key principles of a no-fault system. Injured parties do indeed recover damages from their own insurers and can claim actual economic damages. Additionally, fault is not considered for coverage, as the insurance system operates on the principle that each party's own insurance handles their claims.