10. Who
pays if I am injured or my car is damaged?
That depends on
who is at fault, whether you and the other driver have insurance and what kind
of insurance you have. There are two major types of insurance:
"liability" and "collision."
Liability. If
you are to blame for a car wreck, your liability insurance will pay the
other driver for property damage and personal injuries up to your policy's
limits.
If you are not at fault, the other driver's liability insurance pays for
your car damage and/or personal injuries.
If you and
the other driver both have car damage or injuries and you both are partly
responsible for the wreck, you and your passengers may be able to collect.
If you loan
your car to someone who has a wreck, your insurance pays for the damages -
just as it would if you had been driving.
Collision. No
matter who is at fault, your collision insurance pays for damages to your
car (not your medical expenses), minus the policy deductible.
You may have
other insurance too. Your health insurance, for example, may pay your medical
bills. Also, your automobile insurance may have medical payments coverage. If
so, it will pay the cost of your medical treatment. This coverage can be used in
place of your other health insurance or in addition to it.
