In the early days, car insurance was simply a way to cover your car in the event that it was damaged in an accident. Over time, however, car insurance evolved into a complex financial product that helps drivers cover a wide range of costs related to vehicular accidents. Today, car insurance is one of the most common products sold in the United States. So, if you have ever been curious about when this product started, or how it works, read on for more information. ###
The History of Car Insurance
Car insurance has a long and varied history. It started in the early 1900s as an effort to prevent accidents. Then, it became a way to cover damages caused by car accidents. In 1928, automobile insurance was first regulated by state governments.
In 1949, the first mandatory accident- coverage law was passed in New Jersey. The purpose of this law was to help families who had lost loved ones in car accidents.
In the 1970s, car insurance began to become more complex. At this time, companies began issuing policies that covered a wider range of liability risks and offered additional benefits such as roadside assistance and theft protection.
Today, there are several types of car insurance available: collision coverage, which covers damages you cause to another vehicle; comprehensive coverage, which covers damage to your vehicle from all causes; and personal liability coverage, which protects you if others are injured or killed while driving your car.
Types of Car Insurance
There are a variety of types of car insurance, each with its own benefits and drawbacks. Here are the four main types:
Personal Auto Insurance
This is the most common type of car insurance, and it covers you and your passengers in the event of an accident. It also typically includes theft protection and other features.
General Liability Insurance
This type of insurance protects you if someone else’s negligence leads to an accident. For example, if someone is driving drunk and hits your car, general liability insurance can help pay for damages.
If your car gets into a collision, this type of coverage will help pay for damages to both the vehicle and the driver’s property. This includes things like replacing damaged vehicle parts or paying for medical expenses related to the crash.
Uninsured/Underinsured Motorist Coverage
If you’re in a collision with an uninsured or underinsured driver, this coverage can help cover some of the costs associated with that collision.
Changing Your Car Insurance Policy
When did car insurance start? According to the Bureau of Labor Statistics, car insurance started in the late 1800s, when carriage insurers began writing policies specifically for automobiles. Today, most people get their car insurance through their employer or through a private company they contract with.
Regardless of when you started getting car insurance, it’s important to make sure you’re getting the best policy for your needs. The cost of coverage can vary a lot depending on your driving history and where you live. You can also choose to add roadside assistance and protection for rental cars to your policy. To get started, ask your current insurer about a quote for a comprehensive policy that covers all the things you need.
As we enter into a new year, there are a number of things that we can work on to improve our lives. Perhaps one of the most important things we can do is find ways to reduce our risk and protect ourselves from potential dangers. One way to do this is by getting car insurance, which will help us to financially protect ourselves in the case of an accident or theft. If you’re at all unsure about whether or not you need car insurance, I encourage you to take a look at our comprehensive guide on the topic. By the end, you should have a better idea as to whether or not car insurance is right for you.