History of Auto Insurance

This new type of insurance was created in the late 19th century. As soon as the first started driving their car owners quite mysterious that at the time and the newly-invented the means of transport was a problem - it was absolutely necessary to ensure peace for both drivers and pedestrians. In this way, the car insurance was intended to protect them against any damage caused by car accidents, which may endanger the life, health or property at risk. But at this time there was a number of insurance companies and concepts, such as health, life and property insurance has been long in existence. Thus, no one had to "reinvent the wheel" - they simply need to apply the old rules to the new framework.

That's what TIC (Travelers Insurance Company) Is in 1898, when the insured Truman Martin's providing him a car at a range in value of $ 500 and initiate an era of auto insurance.

Even if the first car insurance Truman was actually meant to protect the car from damage caused by horses instead of cars, twenty years later, when the large transport flooded towns and required the invention of the highway, auto insurance eventually to compensate for losses caused by collision with another vehicle. This car, when the owners were obliged to buy compulsory motor insurance for the first time, which gradually brought about some significant legal changes, economic and political systems in all U.S. states

Auto insurance companies began to rapidly spread throughout the United States and European countries, as a new kind of business to keep growing in the blinding pace of productivity in the first half of this century. However, car insurance has been developing by fits and starts during the 20 century, because in those days, like today, it was quite dependent on the state and development of automotive market the same in every country. In connection with what is fixed in the automotive industry was followed by a period of retrogression in the auto insurance business. As soon as the car market experienced another sales slump, there were no customers to purchase car insurance policies.

In fact, that mechanism has proven to be true not so long ago, when the impact of high gas prices in the automotive industry and auto insurance at the same time. However, the relative stabilization of gas prices, which recently witnessed is beneficial for most auto insurance companies. This makes us believe that over a period of decline in auto insurance development should be over by now.