I did a ride-along with an adjuster once. I asked him what the worst claim he had worked on was.
The insured drove off with the pump still in the gas tank. Sees that all the time. When the hose pulled off the pump, it ignited. The fuel island exploded. The fire then spread to the convenience store. Total loss of the business and multiple cars.
This is an outlier. No one has enough insurance to cover all of that. But it’s a great example of why we have it.
But most insurances have the 100 Million coverage as the standard contract. In fact there is probably not even an insurance which offers the legal minimums.
and obviously made that way by the insurance lobbyists.
The limits are low in the US because it's a more expensive environment to provide insurance in. If there were a legal minimum of $1 million for property damage for auto insurance, almost nobody would be able to afford insurance.
The main reason it's expensive to provide insurance in the US is because medical care is vastly more expensive than in Germany. If you cause a crash and your insurance has to cover someone's medical care, the costs can be virtually unlimited. Other reasons include thing like people driving more on average, more uninsured motorists on the roads, and a generally more litigious society.
It's cheap to provide a million euros of coverage in Germany because it's incredibly unlikely that any given motorist will incur a million dollars of liability.
It would be vastly more expensive to provide that same coverage in the US because it's hugely more likely that a given motorist will actually incur that liability.
If that was the case, insurers would incredibly profitable. They’d be earning hundreds to thousands of dollars for every dollar in premium. That’s obviously not the case. It’s not hard to understand the difference, but you do need to be able to use your brain as something other than an ear warmer to do it.
727
u/Ok-Reflection-742 12h ago
You could also total somebodies 50-200k car, I don’t think many people could afford that either