Car Insurance History

As anyone who has ever been in a car accident or had their vehicle damaged will tell you, car insurance can be a life saver. In modern times, every state in the United States has adopted a minimum insurance requirement on vehicles in order to protect the driver and any third parties that could be involved in road accidents. It's clear that car insurance is useful, even necessary, but how did such a concept come to be? Where was the birth of car insurance?

Ancient China. The new colonies had just been settled, and the Chinese sent frequent cargos across the Atlantic Ocean filled with supplies. But the ocean back then was not as safe as it is now, although today's Somali pirates have caused many issues in recent years. In the days of Ancient China, ships sank frequently, pirates attacked often, and this could take major money out of the pockets of the investors who put so much of their resources into even a single ship and cargo. Wanting loss protection, ship owners began to take out insurance policies on them, so that even if they lost their cargo/ship, it wouldn't ruin them. Now known as maritime insurance, the insuring of ships and cargo continues to this day.

When the automobile was first introduced, it was unlikely that people immediately saw the need to insure them. But by 1898 in the United States, the first liability car insurance policy was written by Dr. Truman J. Martin. England had introduced such a policy three years prior, but Dr. Martin's first policy was a major step forward in the history of car insurance in the United States.

Eventually, it became apparent that operating a vehicle on public property and potentially causing serious damage to said property was a risky endeavor. To mitigate risk, the automobile owner would have to ensure that any damage they caused would be covered. And so it was that in 1927, in Massachusetts, that car insurance for the first time became compulsory by law, a move that has been adopted in every state of the United States to varying degrees today.

The nuances of car insurance today are no doubt very different to what they once were. When auto insurance was first introduced, it was a luxury. Now, it is a necessity enforced by law for the good of drivers and property owners everywhere. Without the minimum car insurance laid out by your state, any accident you're involved in could end up costing you thousands. People have lost their livelihoods, even their homes due to not having the proper coverage. In addition, not having the minimum insurance coverage can result in jail time. Despite the cost of a premium, there is simply no way around it: in modern society, you need insurance.

Car insurance has come a long way from being reassurance for ship investors. It has become an important part of society and law, and any car owner without it runs serious risks. Due your due diligence now and get multiple quotes to find cheap car insurance.

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