How does the manual's glossary define liability insurance?
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A.
It pays to repair or replace your own vehicle after a collision.
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B.
It covers your losses regardless of who caused the crash.
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C.
It pays others for damage or injury you cause when you are at fault. Correct
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D.
It pays your medical bills when a driver with no insurance hits you.
The answer is "It pays others for damage or injury you cause when you are at fault."
The glossary defines liability insurance as coverage that pays others for damages the insured is legally obligated to pay when at fault. The collision-repair pick is the glossary's definition of collision insurance, listed a few entries above liability under the letter B.
The traps in the wrong answers
A. It pays to repair or replace your own vehicle after a collision.
Describes collision insurance, a separate glossary entry. This answer swaps the coverage that protects the at-fault driver's own car for the coverage that protects the people they harm.
B. It covers your losses regardless of who caused the crash.
Describes no-fault insurance, a separate glossary entry. This answer applies a no-fault-state assumption to a Texas fault-based coverage that turns on who caused the crash.
D. It pays your medical bills when a driver with no insurance hits you.
Describes uninsured motorist insurance, which protects the insured under their own policy when a driver with no insurance causes the crash; liability insurance instead pays others when the insured is at fault. This answer reads liability as the coverage that responds when another driver is at fault, missing that the glossary uses liability for what the insured pays out when the fault is theirs.
This question tests your knowledge of Insurance & Financial Responsibility in Texas. Source: Texas Driver Manual, "Appendix A: Glossary of Terms," p.73..
Related Texas questions
- What is Texas's minimum required liability coverage for injury or death of one person in a single crash? →
- Which of the following does the manual list as acceptable evidence of financial responsibility? →
- What minimum liability coverage does Texas require for injury or death of two or more people in one crash? →
- According to the manual, when must every owner or operator of a motor vehicle furnish evidence of financial responsibility? →
- Under the manual, DPS may issue a certificate of self-insurance to a person who has how many vehicles registered in their name? →
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