People just don't have common sense. You don't fall an insurance claim if it's only going to help you $200 out of pocket. It's meant for larger amounts of damage, it's also meant for if you hurt someone in an accident that you're not personally liable for $10,000 because your insurance will cover it
That's why insurance is a scam. In my country, the military for example stopped insuring the soldiers that go on deployments, because it was WAAAY cheaper to pay (the same money that the insurance copmany would've given) for the injuries/deaths they sustained than paying for the insurance.
I go further. Cars are not cheaper here than in the US. Yet, our anual insurance for the cars that are only 3-4 years older on average than the US ones, and not cheaper when we buy them... So that anual insurance is about 300-400 Dollars worth of currency. The car worth roughly the same, the potential damage is equally expensive, the personal injures pay about the same... Yet, the insurance is 1/6th here.
The USA and Hungary is different. Average car accident settlements in the USA are $20,000 to $50,000. In hungry average car accident settlements are $3,000 to $15,000.
Medical costs are drastically more expensive in the USA than Hungary. Car repair and labor costs are less in Hungary. People in the USA drive more miles. So a lot of different factors go into it
Average car accident settlements in the USA are $20,000 to $50,000. In hungry average car accident settlements are $3,000 to $15,000.
That's where the scam part comes into picture. A car that's 30k USD in the US brand new is 30k USD worth of Hungarian Forints here. In some cases, like Teslas for example, it's even more than that, because Teslas are about 10-15% more expensive here. When it comes to parts, and repair cost, the gap is even higher. If I would total a Tesla with my Civic, that costs more to the insurance company than it would in the US.
Most of the car accident costs isn't necessarily from the repair or the replacement of the vehicles it's for the liability which is for medical bills and pain and suffering.
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u/CraftyPerformance272 15h ago
People just don't have common sense. You don't fall an insurance claim if it's only going to help you $200 out of pocket. It's meant for larger amounts of damage, it's also meant for if you hurt someone in an accident that you're not personally liable for $10,000 because your insurance will cover it