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Car insurance is 'interesting' in America.

Car insurance is 'interesting' in America.

Old Jun 21st 2016, 10:20 pm
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Default Car insurance is 'interesting' in America.

So as I understand it, in the US, car insurance is primarily there to protect us being sued for damages. And even then, if the claim exceeds your liability insurance, you're still going to get taken to the cleaners.

Say for example you crash into a football player and break their legs and they are then unable to work. You could potentially be on the hook for the millions you just cost them.

You can then optionally insure your own vehicle against damage from collisions, theft, fire, etc. Doing that seems to double/triple the price.



Not saying this is good/bad/ugly, but it's certainly a difference!
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Old Jun 21st 2016, 10:58 pm
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Default Re: Car insurance is 'interesting' in America.

Last time I insured a car in the UK was 1990, so I don't remember. Isn't the same liability danger present there? I mean if a high earning footballer ended up in a wheelchair...
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Old Jun 21st 2016, 11:02 pm
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Default Re: Car insurance is 'interesting' in America.

Good question. I don't know. But it's not something I've ever had to (or known anyone to) think about in the UK.

It makes sense, if you're at fault and you ruin someones career, who else should have to pay for it?
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Old Jun 22nd 2016, 2:04 am
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Default Re: Car insurance is 'interesting' in America.

I'll try to be selective who I crash into.... definitely avoiding football players from now on!!
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Old Jun 22nd 2016, 2:28 am
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Default Re: Car insurance is 'interesting' in America.

Not sure why you think it is any different.
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Old Jun 22nd 2016, 5:15 am
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Default Re: Car insurance is 'interesting' in America.

If there's a genuine claim against you you should pay, but the problem is that in the US there's a risk that you could lose your shirt as a result of a bogus claim against you. But if it happens it's not as bad as dying in an accident, just insure your car with a reasonable liability figure and don't worry about it.
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Old Jun 22nd 2016, 5:39 am
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Default Re: Car insurance is 'interesting' in America.

Then there is Michigan with its 'no fault' insurance... I am not sure how this compares to other states.
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Old Jun 22nd 2016, 8:50 am
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by robin1234 View Post
Last time I insured a car in the UK was 1990, so I don't remember. Isn't the same liability danger present there? I mean if a high earning footballer ended up in a wheelchair...
The UK has the NHS and a stronger welfare system, so the liability does not have to cover potential medical costs. Compensation for loss of earnings is harder to get as the injured party should be able to get sick pay/income support etc (although for how long with the current government in power is anyone's guess). I think also if you get insurance compensation you have to pay back any welfare benefits you would have received.

I would presume UK footballers (or their clubs) have their own insurance in case of numpties crashing into them.
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Old Jun 22nd 2016, 11:10 am
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by dbr84 View Post
So as I understand it, in the US, car insurance is primarily there to protect us being sued for damages. And even then, if the claim exceeds your liability insurance, you're still going to get taken to the cleaners.

Say for example you crash into a football player and break their legs and they are then unable to work. You could potentially be on the hook for the millions you just cost them.

You can then optionally insure your own vehicle against damage from collisions, theft, fire, etc. Doing that seems to double/triple the price.



Not saying this is good/bad/ugly, but it's certainly a difference!
Try breaking the legs of a top soccer player in England and see what happens. Insurance in the UK and here in the USA covers a range of risks, which vary somewhat but in essence the result is the same.
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Old Jun 22nd 2016, 4:16 pm
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by dbr84 View Post
So as I understand it, in the US, car insurance is primarily there to protect us being sued for damages. And even then, if the claim exceeds your liability insurance, you're still going to get taken to the cleaners.

Say for example you crash into a football player and break their legs and they are then unable to work. You could potentially be on the hook for the millions you just cost them.

You can then optionally insure your own vehicle against damage from collisions, theft, fire, etc. Doing that seems to double/triple the price.



Not saying this is good/bad/ugly, but it's certainly a difference!
That is why you buy umbrella insurance. I think the maximum liability you can insure is $5 million . That should cover most of you assets and liabilities.
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Old Jun 22nd 2016, 6:13 pm
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by Ash UK/US View Post
Then there is Michigan with its 'no fault' insurance... I am not sure how this compares to other states.
MA is another one. It is shit.
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Old Jun 22nd 2016, 6:23 pm
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by dbr84 View Post
So as I understand it, in the US, car insurance is primarily there to protect us being sued for damages. ....
Not really. As others have implied or hinted above, insurance is to protect your assets, so you need as much liability coverage as your net worth.

If you're a student, or living hand-to-mouth then basic car insurance is fine, but if you have savings and a nice house in the 'burbs then you should get an $1million umbrella, which is dirt cheap. If you also have a weekend beach house or a country villa then your umbrella should be correspondingly larger.
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Old Jun 22nd 2016, 6:37 pm
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Default Re: Car insurance is 'interesting' in America.

Also if you are earning $100k a year you may want a million to cover lost wages when you get sued and they garnish your wages for the next 10 to 20 years.
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Old Jun 22nd 2016, 7:34 pm
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by dbr84 View Post
So as I understand it, in the US, car insurance is primarily there to protect us being sued for damages. And even then, if the claim exceeds your liability insurance, you're still going to get taken to the cleaners.

Say for example you crash into a football player and break their legs and they are then unable to work. You could potentially be on the hook for the millions you just cost them.

You can then optionally insure your own vehicle against damage from collisions, theft, fire, etc. Doing that seems to double/triple the price.



Not saying this is good/bad/ugly, but it's certainly a difference!




you dont understand it, talk to an insurance agent
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Old Jun 22nd 2016, 7:49 pm
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Default Re: Car insurance is 'interesting' in America.

Originally Posted by Pulaski View Post
Not really. If you also have a weekend beach house or a country villa then your umbrella should be correspondingly larger.
Not by much, I think I pay an extra $75 per year for each property or thereabouts.

I just realize your post was more about increasing the coverage rather than the extra cost for having additional properties. Still not a lot of money.
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