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In an idealized economy, the owner of a dangerous-to-others truck would be paying enough for liability insurance to cover their negative safety externalities.
by Marsymars 7y ago
In an idealized economy, the owner of a dangerous-to-others truck would be paying enough for liability insurance to cover their negative safety externalities.
Does that play out in reality?
- TomMarius 7y agoDefinitely, at least in my country (EU)
- henryfjordan 7y agoWhat's the price on the life of a pedestrian? Some negative externalities can never really be covered by money.
- deleted 7y ago[deleted]
- asdfadsfgfdda 7y agoIn most of America, the minimum liability insurance is far too low. For example, California only requires $15k per person in liability insurance. If someone is killed or seriously injured, there's easily millions in damages. This effectively is a subsidy to car driving (and bad drivers). But politically, it seems impossible to fix this. Red states want less government intervention, and blue states don't want to "penalize" poor people.
- syshum 7y agoYou know most "Red States" have higher minimums that CA right? Further the insurance minimums does not limit a person liability just the amount the insurance company will pay, if you are stupid and dont have enough insurance then your other assets (like your home) can be seized and your wages garnished to recover the liability This is also why one should have good Uninsured and Under insured coverage However saying all of that, one of the reasons for the Low Minimums on Liability in some states as they have gone to a "No Fault" system so your insurance would pay your costs so it is up to you to buy the amount you want to be covered for, it does not matter what the "other guy" has
- HarryHirsch 7y agoWhat's really worrying is that the cost of uninsured motorist coverage is fairly close to the cost of liability insurance. This would indicate that most everyone in this corner of the state does not carry sufficient insurance to cover the damage that he causes, so people pay extra to shield themselves from that kind of externality.
- MandieD 7y agoAs far as I know, Germany's minimum auto liability is 7.5M EUR. After 15 years of no claims, the liability premium on our 2009 Ford Fiesta is about 400 EUR/yr. It would be higher if we had, say, an Audi Q7, because larger, more powerful vehicles can cause more damage (nevermind that we'd also be more likely to want collision/comprehensive on a vehicle that expensive) So a Cybertruck owner would probably be up for some spectacular liability premiums, presuming that the vehicle was approved for registration in Germany in the first place.