By law the minimum coverage in the EU is over 7 million dollars. That means you won’t be losing your home if you happen to cause harm or damage to others.
That’s many many many times more than the maximum coverage offered by any American insurer. To top it off, even with that crazy coverage, the premium is lower for the same vehicle.
Did you know that Europeans pay 30 times less for car insurance? The American system is ridiculous.
byu/Valuable-Run2129 inInsurance
Posted by Valuable-Run2129
16 Comments
You are comparing apples to oranges. Frequency of travel, distance traveled, speed of travel, frequency of accidents, severity of accidents, cost of repairs, cost of healthcare, etc.
And no, Europeans are not paying 30 times less for car insurance. That is absurd at face value.
Because hospitals there don’t just randomly charge couple millions, among other things.
No country is as litigious as the US
what’s the average claims payout over there?
are people getting paid the full seven million? that would be statewide, if not national news in the US lol
Health care is tax subsidized in much of Europe, so the major coverages of BI and UM/UIM aren’t as relevant.
That seems unlikely. Where are you getting the 30 times less from?
Two totally different systems.
So much is different between the two.
Different legal environment.
Auto insurance eats the cost of injuries instead of government healthcare.
Different drivers.
Etc
Europeans hardly drive compared to Americans. They also typically drive smaller, less expensive cars.
Murica!
Insurance rates are, more than most things, tied directly to payout costs. So if rates are that low people are either crashing 30x less or it’s government subsidized.
I’m unsure if there is a point to posting this ? It’s just a bunch of numbers and your opinion.
European car insurance doesn’t need to pay medical bills which constitute the majority of cost for insurance premiums
They also walk too … so
Lawsuits
The Insurance information institute reports that the average bodily injury claim in the US in 2020 was $20,235, which might explain why auto insurance rates in the US are pretty steep.
The plaintiff’s bar in the EU must be soft as a pillow full of titties. Subsidized health care out there ruining case values and all, probably can’t board the meds.