Suppose a car insurance company sells you an insurance policy that gets you legal and costs $7.50 per month. What is the problem with this insurance policy?

What does it mean to have only 25/50/25 liability coverage for the following situations (what could the insurance company pay)?

a. If you hit someone (you are at fault)?

b. If someone hits you (they are at fault) and is insured?

c. If someone hits you (they are at fault) and is not insured?

d. If it is ruled that neither person is at fault?