Insurance is one of those areas of knowledge where, unless you're an expert, you can easily be told true statements that are highly misleading. Overlap that with the law, and you get a fantastic tangle of misleading information that can cripple your ability to make good choices.
It's probably true that, technically, liability insurance is only available once the driver loses in court, but that means very different things than it implies. For one, the driver has no knowledge of the court case, in many situations. The insurance companies work with one another to figure out who is paying what, and the insured is largely uninvolved.
You can "be told" many things about a system you're unfamiliar with that sound, on their face, absurd, but upon inspection actually make plenty of sense. This sounds like one of those things.
It's probably true that, technically, liability insurance is only available once the driver loses in court, but that means very different things than it implies. For one, the driver has no knowledge of the court case, in many situations. The insurance companies work with one another to figure out who is paying what, and the insured is largely uninvolved.
You can "be told" many things about a system you're unfamiliar with that sound, on their face, absurd, but upon inspection actually make plenty of sense. This sounds like one of those things.