Liability Insurance?

Liability protects the other parties in accidents that you cause. It does not protect you or your car.

If someone else caused the accident, their insurance (if they have it) should pay. If they don’t have insurance, and you don’t have uninsured motorist coverage, you’re out of luck. You could sue them, but your chances are slim.

Having only minimum legally-required insurance is like walking a tightrope without a net — unless you have a lot of money in the bank to “self-insure” yourself.

Well, I’m making a massive assumption here that your “friend” has no insurance backround, and didn’t read your policy. Actually, I’m also assuming he doesn’t know what the definition of the word “liabiltiy” is.

Liability protects YOU, from a lawsuit, or from having to write a check to someone else, if YOU cause damage to someone else – it WILL pay for someone else’s car and injuries, up to the limit of coverage YOU BOUGHT. It only EVER pays someone else, you can NEVER collect under “liability” of your own policy.

Now, along with liability, you MIGHT have “medical payments” or “personal injury protection” which WOULD pay you, if you have an injuries in your car, REGARDLESS of who caused the accident.

But if you don’t have “collision” coverage, and you’re in an accident, YOUR policy won’t pay to repair any damage to YOUR car.

You need to sit down with your agent and go over your auto policy – what you have, and what’s available – so you can make an informed decision. DO NOT rely on this “friend” – use your agent.