They all assume it's like health insurance, copays, and deductibles, and the like. The classic example is the person who buys the bare minimum auto insurance, usually just this:
Minimum liability insurance requirements for private passenger vehicles (California Insurance Code §11580.1b)
Liability insurance compensates a person other than the policy holder for personal injury or property damage. Comprehensive or collision insurance does not meet vehicle financial responsibility requirements.
- $15,000 for injury/death to one person.
- $30,000 for injury/death to more than one person.
- $5,000 for damage to property.
Then, they total the car, and wonder why the insurance company didn't pay for it. The $5,000 in damage is for the damage YOU are liable for, typically the other person's car that you hit. (Assuming it's your fault...)
If they have CA state minimums, then expect $5,000. That's it. (Yes, you can lawyer up... but that's another conversation.)
To understand Liability, go here.
I spend most of my day explaining to business owners what Liability is... Fascinating.