This local story illustrates the pitfall of “Liability only” car insurance. While most people understand “liability only” car insurance doesn’t cover comp or collision claims such as your vehicle is stolen, you hit a deer or you have an at-fault accident. Most people are under the false assumption that if the other driver is at-fault then their vehicle will be replaced by the other insurance company but it isn’t true for all cases, especially in the instance of a hit and run.
Many people believe under/uninsured insurance will kick in to take care of it. But in the states of Iowa & Nebraska, Under/uninsured insurance only applies to bodily injury NOT property damage. So that coverage will not replace your vehicle leaving you stranded and having to pay out of pocket for your vehicle damage or replacement.
In this news feed, the gentleman would have had coverage if he had collision insurance. He would have had to pay his deductible and it would count as a claim against him even though he was not at-fault.
Posted: Mon 9:36AM , May 05, 2014