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> I can't prove collusion, but mandatory insurance seems wrong. I do not know how it works in the USA. But in Spain the mandatory insurance is for 3rd parties,
by ElViajero 5y ago
> I can't prove collusion, but mandatory insurance seems wrong.
I do not know how it works in the USA. But in Spain the mandatory insurance is for 3rd parties, for the damage that you may cause to others.
It has historical roots. A driver will crash their car and damage or kill others. That driver has no insurance and no cash. So the victims are left with high costs and probably in poverty. Mandatory for 3rd party insurance assures that when that happens, the victims can collect some money that will alleviate their economic situation.
- samtho 5y agoThis is how it works in the states or at least in California which I am most familiar with. It’s divided into two parts: liability (damage payout to other party if you are at fault) and comprehensive (damage to your vehicle where someone else’s is not at fault). If you get into an accident and are at fault, your insurance liability pays out to the 3rd party and your comprehensive coverage pays out to fix your stuff if you opted in. Only liability (property and medical) are required as that makes the other party whole if you’re at fault.
- tomp 5y agoThird party insurance Claims can be huge, as well. Selby train crash - a car derailing a train - was £20m! https://en.m.wikipedia.org/wiki/Selby_rail_crash https://en.m.wikipedia.org/wiki/Selby_rail_crash
- hef19898 5y agoThe mandatory 3rd party insurances in Germany caver a minimum of 5 million Euro per case, mine is 10 or 12. Makes sense, especially if factor in stuff like loss if life and disability.