I live in Washington State. I have a reasonably cheap car. I am not afraid to replace it if I have to so covering for damages isn't a problem. Additionally, I have a good job with good health care. I am however interested in covering myself for truly catastrophic events. Therefore; I waived all coverages except for liability. However, some friends got me worried that I am misunderstanding the situation and opening myself up for undue risk. I tried reading up and clarifying what each of the coverages mean but it left me even more confused. Here's what i got so far:
Cover myself: at fault -> collision, not at fault -> other party's liability
Cover another party: at fault -> liability, not at fault -> their problem.
Given good healthcare and some reasonable savings, I'm not worried about myself much. The only potential risk is that the other party does not have coverage and won't be able to cover damage to my car or some of my physio bills. I am ok with that.
If I'm at fault, my liability insurance should kick in (up to the limits) and cover me. Correct? For example if I drive into a Ferrari or something along those lines.
Another thing I'm not clear about is what happens if I lend my car to a friend and they get into an accident. Does the table above apply or is it up to their own insurance?
Finally, what happens if I am renting a car that's within the same price range? Am I still covered the same way?
Thank you very much