Nowadays, car insurance is often regarded by drivers as an annoying necessity. It’s annoying because the costs of insurance have risen year after year and it’s a necessity because it is a legal and mandatory requirement by law. However, not all drivers in search for cheap car insurance are aware of the actual origin of motor insurance. If you are one of those people, read on and discover the origins of insurance policies.
Car insurance is known to have originated in the United Kingdom back in 1895. The first ever insurance coverage was the Liability Auto Insurance Coverage which is the insurance policy that compensates unfortunate participants of an automobile accident. Unfortunately, the British did not seem to embrace the idea of insurance and the first ever insurance policy was not put into effect until 1898.
In 1898, automobiles were huge in the United States. One of the first owners of a Columbia Electric car was Doctor Truman J. Martin. The main reason why Doctor Truman bought a vehicle was for him to be able to visit his patients more often despite the distance. However, after buying an expensive car to be traveled on rocky roads to far-flung places, he realized that he wanted to protect his investment from unknown dangers. Shortly after this realization, Doctor Truman began his research on how to protect his investment and it wasn’t long until he found out about the first car insurance policy in England. After talking to the first known car insurance broker, Walter Cowels, Doctor Truman Martin became the first person to ever buy car insurance. In fact, it has been recorded that his insurance policy was a not so cheap car insurance annual premium, being at $11.25.
In 1927, car insurance policies have gained acclaim in the United States and in other countries as more and more people decided to get their vehicles insured. In addition to this, cheap car insurance annual premiums were also being introduced. However, not all motorists had insurance policies. This is why the Massachusetts government decided to mandate a compulsory requirement for every driver to acquire a car insurance coverage. Other states and other governments followed suit and motor insurance became what it is today.
No Comments