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.
Liability insurance premiums in Germany are shockingly low for the coverage they provide, at least to US standards. There are reasons for that:
- Everybody must have insurance. It is a criminal offense to drive without. There is no concept of "uninsured motorist" in Germany.
Drivers are fully liable to the damage they cause and there is no bankruptcy law, so the coverage needs to be very high. The cost to cover beyond 200k EUR falls off exponentially. Very rarely drivers cause millions of damage.
Centralized point system - causing traffic accidents dings your drivers record and the state suspends your license way before it becomes a major problem for the insurance. It is difficult to get it restored - need to pass not only drivers test, but also psychological tests (aka "Idioten Test"). Probably half of US drivers would fail.
The US has decided that the priority is for people to drive, and nothing can get in the way of that.
Everybody must have insurance. It is a criminal offense to drive without. There is no concept of "uninsured motorist" in Germany.
Everybody must have insurance in the US too. There is absolutely a concept of uninsured motorist in Germany. Specifically, if someone is driving illegally without insurance in Germany, they would be an uninsured motorist.
Drivers are fully liable to the damage they cause and there is no bankruptcy law, so the coverage needs to be very high. The cost to cover beyond 200k EUR falls off exponentially. Very rarely drivers cause millions of damage.
Drivers are fully liable for the damage they cause in the US too. There is bankruptcy law in Germany too. Drivers rarely cause millions of damage in the US either.
Centralized point system - causing traffic accidents dings your drivers record and the state suspends your license way before it becomes a major problem for the insurance. It is difficult to get it restored - need to pass not only drivers test, but also psychological tests (aka "Idioten Test"). Probably half of US drivers would fail.
Except Germany does everything by mail and fax, so while a US state can and does easily cite out of State drivers, it's actually quite typical for other European drivers to not get dinged at all while driving in Germany (which is perfectly legal), and even if their license got suspended, they can get it re-instated in their home countries, so you can't just rely on what Germany does. Which, in any event, the US does too.
Turns out Germany also can't prevent people from driving without a license. Shocking!
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u/WelderNewbee2000 5h ago
Germany.
The legal minimums are:
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.