Delaware Driver Education State Practice Test

What is liability insurance primarily used for?

1. To cover all damages to your vehicle regardless of the situation

2. The lowest grade of insurance, usually for older cars

3. To replace lost or stolen vehicles

4. To cover medical expenses for drivers' injuries

The correct answer is: The lowest grade of insurance, usually for older cars

Liability insurance is primarily designed to cover the costs associated with damages or injuries that you may cause to others in an accident for which you are found at fault. This type of coverage does not protect your own vehicle or personal injuries but focuses on your financial responsibility towards other parties involved in an accident. The answer option that outlines liability insurance as the lowest grade of insurance, usually for older cars, may not accurately represent its purpose. While liability insurance is often the minimum coverage legally required in many areas and can indeed be cheaper than more comprehensive policies, the essence of liability insurance lies in its function of protecting others rather than offering comprehensive coverage for your own vehicle or personal needs.