The Early History of Auto Insurance

Did you know that the first automobile insurance policy was issued in 1897? That’s right, auto insurance predates even Henry Ford’s famed assembly lines, which didn’t start cranking out Model Ts until 1908.

Without auto insurance, the world would probably look a lot different for drivers. Insurance provides peace of mind, protecting property and people alike. Contact Carminucci Agency, serving the greater Croton Falls, NY community, to discuss about your auto insurance options.

Here we take a look at the history of car insurance and why it came about:

The Founding Years of Car Insurance

Ben Franklin is famous for his many contributions to society and science. This Founding Father also introduced the idea of insurance to the New World by offering fire insurance, starting in 1751. While these days insurance is commonplace, it was quite novel at the time. Insurance would evolve over time, with early innovations eventually leading to car insurance.

In the late 19th century, cars were starting to become commonplace. Given how expensive cars were and the risk of people getting hurt, the value of auto insurance became pretty obvious to early drivers. In 1897, Gilbert J. Loomis took out the first car insurance policy in Dayton, Ohio. Others quickly followed in his steps.

By 1902, auto policyholders could enjoy expanded options, including adding coverage for fires and theft. As policies evolved and more cars hit the road, the insurance industry grew. Still, during the early years, auto insurance was not a requirement, and many drivers hit the road uninsured.

When It Became Mandatory

Things started to change in 1927 when Massachusetts made automobile insurance a mandatory requirement for most drivers. New York became the second state to make such insurance compulsorily, doing so in 1956.

More states began to make insurance a requirement, but it wasn’t until about 1970 that almost all states had laws making auto insurance a requirement. Today, every state other than New Hampshire and Virginia has mandatory minimum auto liability coverage laws in effect. 

Now, car owners must typically prove that they have insurance before getting a license plate for their vehicle.

Get Auto Insurance Today

Want to learn more about specific car insurance plans? Contact us at Carminucci Agency – we serve Croton Falls, NY and surrounding areas.