What exactly is liability (car insurance question)?

[Antoneo]

What is covered in this plan? Let's say I get into an accident and the fault is mine, does my insurance company only pay for damages on the other party and not mine with a liabilty plan? What happens if I have only a liability plan and I get into an accident where the fault lies on the other party?

 

[Mr.IncrediblyBored]

Liability: You get into an accident with another vehicle where you are deemed "at fault," the insurance company will pay for the other parties damages, but you will have to pay for your own car and/or hospital bills.

Collision: If you get an accident where you are deemed "at fault," the insurance company will pay for the other parties' damages and your own.

Comprehensive: The insurance company will pay for any damage done to your vehicle due to theft, act of God, vandalism, etc.

Edit: By the way, if you get into an accident where the OTHER person is at fault, their insurance company will pay for your damages. Your company isn't involved at all. If the other party is at fault, but he doesn't have insurance, your insurance company may or may not cover your damages. This depends on the type of policy you've opened up.

 

[Antoneo]

Thanks for the quick and comprehensive reponse (as to be expected from ATOT community)!

 

[Jzero]

<< What happens if I have only a liability plan and I get into an accident where the fault lies on the other party? >>

Well, since I believe all states require at least SOME form of liability insurance, if you are in an accident and you're not at fault (or you live in a no-fault state) then the other guy's liability covers your damage.
The caveat is that A) if the guy is uninsured you're screwed. B) if the guy hits and runs, you're screwed. C) if they guy's insurance is not sufficient enough to cover your damages, you're screwed.

By screwed, in these situations, I mean you'll have to start covering damages out of your own pocket, or try and sue the other person for the unpaid costs...

 

[Jerboy]

<< What is covered in this plan? Let's say I get into an accident and the fault is mine, does my insurance company only pay for damages on the other party and not mine with a liabilty plan? What happens if I have only a liability plan and I get into an accident where the fault lies on the other party? >>



Liability coverage
Will pay for property damages and personal injuries to the third party that you're legally liable for.

collision coverage
Covers your vehicle in at-fault fault accident. There is often a deductible for this. If your deductible is $1,000 and you cause $3,500 damage to your car, the insurance company will pay $2,500. Higher the deductible, lower the insurance rate.

Comprehensive
Covers non-collision damage such as vandalism, windshield cracks. There is often a deductible and the premium(insurance cost) is usually lower when you have a higher deductible.

PIP, Personal Injury Protection
Compensates you for your injuries incurring from at-fault accidents.

uninsured motorist
This covers your property damage and personal injury in case the other party doesn't have insurance, couldn't collect through court since they filed bankruptcy or in a hit-and-run where you can't identify the suspect.