Car Insurance question?

[Oscar A]

My dad just got into his first accident the other day and I want to know how car insurance works. Does our insurance pay for the other person's damage and they pay for ours or what. Because my dad says that his insurance won't pay for his damage. BTW my dad's insurance is State Farm and its like the minimium coverage (i think, i know its not full) and the other person's insurance is Univerial.

 

[mbrcatz17]

OK, it doesn't matter who the company is, it matters what the coverage is. If your dad's at fault, and he has minimum coverage, and no collision, then his insurance pays for the damage to the other guy up to the policy limit, but not him. If his limit isn't high enough to pay damages, he has to pay the rest himself.

If the other guys is at fault, or you live in a true no fault state, then your dad's policy doesn't pay anyone anything, and the other guy's policy *might* pay to fix your dad's car - up to their policy limit.