All over the world, you need car insurance that covers the damages you do to others. In Austria and Germany, this insurance has to cover at least 7 790 000 € of damages. Isn't it a bit high?
This Canadian blog explains that coverage of 1 000 000 CAD (741 212 €) is not enough, especially if you cripple someone. I agree, but I don't see any reason to go as high as almost 8 million.
What do things look like in the US, a country of the dreaded 'medical bill'? Shockingly, this website recommends a coverage of $ 300 000 (284 950 €).
It is hard for me to imagine an accident where you would do more than 10 million € of damages. Perhaps seriously injuring 5 or more people, or crash-blocking the only fire exit in a burning building. Maybe crashing into the Louvre and T-boning the Mona Lisa.
Let us look at how often such freak accidents happen. I wasn't able to find any other data than the difference in insurance premiums.
The difference in premiums for a 7 790 000 € coverage and 15 000 000 € coverage for a new driver is about 1 € per month or 12 € per year. The additional claim to be paid by the insurance company lies between 0 and 7 210 000 €. Let's make it 3 million €. For an insurance company to break even, the probability of such a freak accident would have to be 4 in a million per car-year. In Germany, there are about 50 million insured vehicles. That is, to break even there cannot be more than 200 such freak accidents per year. But are there any such accidents at all? I wasn't able to find the data.
Is this all a scheme to get a few more pennies on premiums, or are there any cases when such high coverage is justified?