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.
Most of the cargo that was shipped in these cargo ships belonged to wealthy traders of England and it is the clan of these traders only who rolled out insurance policies to safeguard their ships against potential maritime dangers.
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.
With the number of vehicles and the number of road accidents growing exponentially in numbers and complexity, car insurance policies are being renewed at a very rapid pace. New tailor made policies have surfaced in the recent past and offer a wide array of benefits to the car owners. Such policies are not a luxury, rather, a necessity, given the fact that in the long run, they can save you hundreds, even thousands of Dollars in case of a mishap.
While the first law, making car insurance mandatory in 1927 in Massachusetts, real ground work had already been started in this field in the early 19th century. A number of car insurance policies were written and the first policy giving a full liability cover was written in 1895 in England. Soon, three years later, America saw its first such policy, penned down by Dr. Truman in 1898. Policies offering a full liability cover are the most popular and preferred of all car insurance policies because of the fact that they not only insure the vehicle, they also reimburse the vehicle owner for any damage that he might have caused to others.