Car insurance is a fact of life these days. In many countries, it is a legal requirement to have some sort of vehicle insurance when driving. Below are some interesting facts about the development of car insurance over the years.
- One of the earliest forms of insurance on a vehicle can be traced back to around 1750 BC and was part of the Code of Hammurabi. This was for sailing merchants who received a loan to fund their shipment, where they would pay the lender an additional sum in exchange for the lender guaranteeing they would cancel the loan if the shipment was lost or stolen at sea.
- More modern forms of insurance began to develop in London during the early part of the 17th century.
- It is thought that the first car accident happened in 1891 in the state of Ohio.
- In 1897 Gilbert L Loomis asked Travelers Insurance to write a policy to cover incidents that occurred resulting from driving his steam-powered car. Car insurance was a new concept and the policy was written as a horse-and-carriage policy.
- Travelers Insurance co-wrote the first true car insurance policy in 1898 to Dr. Truman Martin of Buffalo New York.
- The first car insurance policy cost $12.25 and covered Dr. Martin for $5000 if his car collided with a horse.
- In 1925, Connecticut became the first US state to require car owners to pay for any injuries or property damage resulting from a car accident.
- In 1927 Massachusetts became the first state to require that drivers prove financial responsibility as a requirement for registering a car.