If there is one insurance policy that is one everybody’s lips these days, then its got to be car insurance! Never in the history of insurance has one single policy been so widely accepted, used, abused and talked about. What is it that made car insurance spring up from nowhere and become the most popular policy in the world today? Where did it all start? What were the circumstances that forced policy makers to make it mandatory for car owners to get car insurance done? In this write up, we tty and explore the answers to all these questions.
Have you ever wondered where did it all begin? In this write up, we try and explore some of the reasons and incidents which led to the foundation of car insurance policies and laws relating to them. The earliest hints of vehicular insurance com from ancient China, when the west was opening up to this far land.
British traders had established a number of trade colonies in coastal Chinese regions and a lot of cargo was transferred on ships, to and from this coast into the Pacific and the Atlantic oceans. At times, these ships went berserk and lost track and some were even looted. It was after these incidents that they traders and investors of that era brought forward the idea of marine insurance, thus giving birth to an all new class of insurance policies.
Policy makers in the US were strictly bent towards the idea that if you own a vehicle and drive it on public roads, you ought to have car insurance in order to prevent damage to any third parties. It was this thought process that made the ownership of car insurance mandatory in the US and in the rest of the world as well.
While car insurance policies in the US can be traced back to the early 19th century, he first law, making car insurance policy mandatory for people owning cars and driving them on public roads, came into effect in 1927 in Massachusetts. Right after this law was passed, its acceptance was widespread, not only in the US, but also In the rest of the developed and developing world. With the number of cars (and consequently, the number of accidents) on the rise, such laws have been welcomed with open arms all over the world.
Dr. Truman J martin, is said to be the father of car insurance policies in the US. His policy, written in 1898, was the first policy offering liability cover in the United States. This was, however, not the first time that an insurance policy offering liability cover had been rolled out. Three years before Truman had drafted his policy, an insurance company in England had already rolled out a car insurance policy offering liability cover, in 1895.
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