The Intelligence: General dynamics
The Intelligence from The Economist
Balancing Liability Insurance Requirements and Premium Costs
Different countries have varying minimum liability insurance requirements, with Germany at 7.5 million euros, Britain having unlimited liability for injury, and the US as low as $15 or $20,000. Despite higher rates of car crashes in the US, liability limits remain low as increasing requirements would raise insurance costs, which is generally unpopular. Some states like Michigan have reduced insurance costs by removing certain coverage requirements, resulting in cheaper premiums but not eliminating the financial burden of car crashes.
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