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> 15k, 30k, 5k liability doesn't cover much. So little why mandate it? Capped liability seems stupid to mandate. In the Netherlands, liability insurance is ma
by rocqua 5y ago
> 15k, 30k, 5k liability doesn't cover much. So little why mandate it?
Capped liability seems stupid to mandate.
In the Netherlands, liability insurance is mandatory and uncapped. The insurance company will pay, and then do their best to recover money from you. It doesn't take you of the hook. It just ensures the hurt party gets their payout immediately and unconditionally.
That seems like a better system than what you described.
- samtho 5y agoI don’t think it’s as different as it appears at first glance. Capped coverage does not mean that’s the max a hurt party is able to get, just the max a particular policy will cover per incident. The hurt party’s insurance generally advances any cost they incur immediately as needed and their insurance company recovers the money from the at fault party. The caps are an important part of the policy because the policy holder can balance the risk of how likely they will be in an at-fault incident and how much that will end up costing total.
- Scoundreller 5y agoI wish we did cap (or even fix?) liability to repair the other’s vehicle. If I crash into your $1m stained glass car, that should be mostly your problem. The highway is not a place to store your work of art. If I sensibly drive a $5k used Toyota that’s easily repairable, that should be good for my insurance, not yours in the way of lower liability premia. Maybe make it like « the car needs a new paint job, here’s your $1k cheque, we don’t care how difficult the manufacturer made it for you to repaint it. If that’s a problem for you, decide better on your next auto purchase. ». But then insurance adjusters would be out of business and half the reason for insurance, having someone else figure out for me what the damages are so I don’t get screwed, has just disappeared.