Whose Idea Was It To Have Car Insurance in the United States, Anyways??
Did you know that automobile insurance is the most widely purchased insurance in the world? It should not come as too much of a surprise since its origins can be traced back to the times of Ancient Chinese Maritime trading. Since there were no cars back then ships were the chief source of transportation of the day. Insurance came about as a form of protection for cargo on ships as it was often lost to sinking or piracy…but, enough with this side of the world……….what about the Americas?
Car insurance is a spin-off of marine insurance. It was developed in the United States after policymakers decided that operating a motor vehicle on public property was a privilege. It was enforced with motorists to purchase car insurance in efforts to protect innocent third parties against injury or property damage.
The first liability car insurance policy written in the United States took place in 1898 for Dr. Truman J. Martin. The first state to make mandatory car insurance law, was Massachusetts in 1927. However, car insurance policies actually came into play much earlier. In fact, car insurance policies can be traced back 100 hundred years prior to the introduction of the motor vehicle in the United States in 1908. Today, every state in the Union has adopted a mandatory car insurance requirement, although car insurance obligations vary widely from state to state.
Car insurance premiums are based on many factors including your age, sex, driving record, credit history, and the type of vehicle you drive. If you have multiple speeding tickets, or have been involved in multiple accidents, you will pay a much higher premium.
Car insurance is not a luxury, it is a necessity. It can save you thousands, perhaps even hundreds of thousands of dollars, should you ever be involved in a car accident. Most insurance companies offer monthly payment plans, making it easier on your budget.