[coremoff]

Is that a case of missing externalities? The person who pays in this case is the pedestrian, and the courts do not seem to value pedestrian lives the same way that they value someone's ability to legally drive - that must drive down premiums because what is lost is not repaid.

[tnmom]

No, liability insurance pays out your _liability_ for pedestrian's medical bills and/or death caused by you. That's the point.

[somerandomqaguy]

.....? Liability insurance to offset the costs done to others. You hit a fence or a pedestrian, the liability insurance is meant to cover the costs of repair or medical costs.

Damages to the car and driver are either covered under separate provisions of insurance or come out of pocket.