Basically, the bike always has right of way and cyclist act like it as well, cyclist don't slow down and assume the any cars will stop, on the other hand, car drivers are drilled to always be on the look out for cyclists and give them all the space required, you get drilled on this and don't get a license untill you fully understand how to keep cyclists safe, that in practise means you need about 40 hours of driving lessons before you have any change of getting a driver's license. On the liabity side of things, the law basically assumes the driver of the car (more generally a motorised vehicle) is always at fault. Aside from some extremely reckless behaviour bordering on intentially throwing yourself in front of a car, any damages to your own vehicle as well as the cyclist you hit, is coming out of the motorists insurance.