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In my state, you can get out of the insurance requirement by holding $30k in escrow (or at least that's what it was about ten years ago; maybe they've increased
by thfuran 2y ago
In my state, you can get out of the insurance requirement by holding $30k in escrow (or at least that's what it was about ten years ago; maybe they've increased it). I guess maybe it's meant to be indicative that you could get your hands on more cash if needed, but that's basically only enough to cover a fender bender. If there's injuries or a totalled vehicle, it's likely not sufficient.
- SoftTalker 2y agoIf there's injury, $30k would only cover a day or two in the hospital, might not even cover ER expenses, as they'll be charged at list price not the "negotiated" rates insurance companies pay. $30k is an absurdly small bond to post for self-insurance, though I'd believe that the regulations have not kept pace with reality.
- 1123581321 2y agoThe cash rate is similar to insurance negotiated rates. Typically 25-30% off automatically, 50-100% off with a financial aid application. Doesn’t change the inadequacy of $30k medical liability in a serious wreck, but don’t think you’re stuck with list price bills if you’re hit by an underinsured driver and have no health insurance.
- wl 2y agoAre you in California? The requirement is to either a bond $35k or to carry a liability policy that covers at least $30k for death and injury and $5k for property damage, matching the deposit requirement. That will increase to $75k in 2025, which still seems far too low.
- thfuran 2y agoI'm not. I'm surprised it's so low in CA.
- garaetjjte 2y agoFor comparison EU mandates liability policy of 1.22M euro for property damage and up to 6.07M euro for injuries. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52016DC0246 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52...