Automobile Insurance History

Automobile insurance history may not sound like it would be that engaging, but actually does date way back. Sometimes when you look at various elements in the world like the automobile, it is easy to forget that there is history to it. Not only is there rich history in the automobile, itself, though, but there is also a lot of vehicle insurance history out there that eventually lead to automobile insurance history and finally our modern day insurance for cars and the like. Take a look at some of the auto insurance history that is out there and you will see that we, as humans, have seen the risk in travel and sought to minimize it for much longer than you may have initially realized.

Why Car Insurance Anyway

You probably already know that you are required to cover your car. Each state has laws in place to that effect, and this drives vehicle insurance sales up. However, you may not be entirely sure how we got to this point. When in history did we first start to put money up against the automobile as a way to protect ourselves? That history actually may go back longer than you think, but before you look at the when, first consider the why.

Before something like automobile insurance can exist, there has to be a need. That need dates back to the invention of the motorized car the late part of the 19th century. The new horseless vehicle became popular quickly and was popping up all over the US. However, as the popularity of the new vehicle grew, so did the number of injuries and crashes associated with it. With risk there comes financial risk and thus a need.

Not long after people started to realize that cars could be dangerous, the need to protect protect finances as well as property was right there. However, even though that may be where automobile insurance history starts in its most literal sense, the truth is that car insurance actually goes way back before the automobile and even before the combustion engine.

Earlier History

The car insurance history for any contraption goes back to ancient times when boats and ships were used to move cargo from port to port all over the known world. It even leaked into the new world and shipments across the Atlantic at that time as well. That is where the real history of automobile insurance begins.

At that time, people realized that there was risk in shipping valuable goods by ship. Systems were worked out all over the world to protect the financial interest of these holders of goods. Thus began the idea of protecting finances by the use of what would eventually be known as insurance.

That same process was eventually applied to the manner in which other goods were shipped on land and at sea. Basically, the history of all insurance can be seen in the early Chinese empires, the Roman Empire, with the Greeks and right up through the development of the United States. While how this look may have varied, the essential idea was the same: risk was offset with money in one way or another by a third party.

Today Going Forward

Auto insurance history leads right up to today. Today, it is required for car and vehicle owners all over the United States as well as many other countries. It is seen as a way to protect people against them selves. The industry has also grown so that quotes and rates on a single policy can vary a great deal. That is why many people in modern times use the internet to compare what is available to them. With innovations such as the internet and sites that help with comparisons between companies, auto insurance history continues to be made.

Automobile insurance history is deep and varied. It is also a great way to understand why it is you have to have it for your car. History, if nothing else, teaches about why we do the things we do now. The history of car coverage is no different. By understanding that its literal history may start in the late 19th century, when the car was first invented, you may get the impression that it is recent. However, the history of coverage on goods, people, and vehicles is actually very old. It dates all the way back to some of the oldest civilizations on earth. These groups understood the value of protecting cargo and other property and figured out a way to do it. In much the same way, we still do that today, and that is what has led to regulations and laws dictating what you have to buy as well as a multi million dollar industry. So there you have it: the root of insuring autos.


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