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In 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
by asdfadsfgfdda 7y ago
In 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.