Why is car and motorcycle insurance so cheap in the USA compared to the rest of the world?

Pricing is based on statistical data gathered for each ZIP code (postal areas). It includes (and I'm sure I'll forget some things) the current value of vehicles involved, the statistics of that specific vehicle being involved in collisions (My Mini was cheaper to insure than my Mazda, even though the mini was a more expensive car because Minis get in fewer collisions) The driving record of the individual (this gets filled in by statistical data if the driver has insufficient driving experience). The distance that a person drives on a regular basis (commute usually). The expense of repairing the specific type of vehicle The calculations are meant to take things like that into consideration and still give out less money than they take in so they can be profitable. If other parts of the world have higher costs in those areas, that would lead to higher insurance rates (or the chance that the insurers charge more for higher profit)