Auto Insurance Claims: car accident - liability, underinsured motorist coverage, collision coverage

Question
QUESTION: Hi

At first i would like to thank you for taking the time reading over this.
I am not from here. We are in the USA for 6 month for study.
3 days ago we were in an car accident. We forced that accident, because we had a stop sign and the other party hasn't.
We have an insurance at the general which covers liability and un/underinsured motorist...
My question is:
We are 4 persons in this insurance but only one of us was driving the car. 2 of us were passengers in that car and the last one wasn't even in the car.
Will the insurance pay for us (besides the driver). We (all together) have bought the car for 3600$. Will the insurance pay for the financial loss of everyone besides the driver? Where can we find information about that?

thank you

Robert

ANSWER: Hi Robert,

If the accident was your drivers fault then there will be no coverage for your car. If you only had liability and un/underinsured motorist coverage, that is to pay for damage that you cause to someone else or if an uninsured or underinsured driver damages you or your car. The coverage you would need to pay for your car when you are at fault in a collision is Collision coverage.  If you do not have that coverage then there will be no payment made for your car.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Yes. that is true.
But in Germany, the liability insurance will pay for 3 of us. Because 3 of us have financial damage but they were not responsible for that crash. Only the driver has financial damage in the end.
Everyone of us 4 has played 1.000€ for that car. Now it is totaled and everyone has lost 1.000€ in the end. No matter if that person was the driver or not. This can't be the matter? So in Germany the liability will pay in that case 1.000€ for 3 of us. So that only the driver has a financial loss of 1.000€. Is that the same case in the US?

Thanks a lot for your answer!


Robert

Answer
Hi Robert,

I have no idea how things work in Germany. In the U.S., The way is works is that each coverage has a specific purpose.

Liability coverage is to pay for damage that you cause to someone else, either bodily injury or property damage. If has nothing to do with you or your vehicle.

The only coverage that will pay to repair your vehicle (or its value in the event of a total loss) is called Collision Coverage.  

I'm sorry I could not help more
Richard Hixenbaugh