Beginnings of Car Insurance Industry

06 Nov

Every car owner nowadays have their own car insurance. However, the concept of car insurance’s beginnings are unknown to most people.  It is believed that the concept of insurance is as old as humanity itself. Insurance policies can even be traced all the way back to ancient Babylonia when merchants who had loans paid lenders an additional sum to provide a guarantee against losses if their commodities were lost or harmed during shipping. Of course, as societies have grown and advances have continued throughout various industries, insurance has had to adapt to all the changes. Now it seems you can insure almost anything including health, real estate, technological properties, education, and even your life (memorial insurances).

The car insurance industry started, of course, after the discovery of cars because clearly, there is no car insurance without the car. Since the use of the horseless carriage was a source of great excitement in the late 19th century, as more and more automobiles started hitting the roads, there are more and more accidents occurred. This, naturally, led to arguments over who was responsible for injuries and damages to property that were a direct result of these accidents.  As more people started driving cars, more accidents started happening, along with more legal disputes. The biggest issue that came from all of this was that even after fault was determined in an accident, there was no guarantee that the at-fault driver would be able to pay for the costs associated with that accident. This issue kept growing in severity until finally someone had to step in.

A law was then drafted in the US which stated that the owners of cars had to prove that they could pay for any injuries or property damage they cause to others in a car accident. While there was more than one option to prove financial responsibility, the easiest and most accessible way was by purchasing liability car insurance. This becomes automatic that you have a car, you need auto insurance since cars are big expensive machines that are driven at fast speeds. Accidents will eventually happen, and protection is essential for everyone, even for non-car owners.

The laws on car insurance evolved from Western countries and made its way to developing countries even in Asia, or pretty much everywhere with a booming car industry. One of the Asian countries who adopted modern car insurance policies is Singapore. On the other hand, this opened a lot of opportunities in the country by building an industry of credible professionals in terms of handling agreements and claims. Car insurance claims became an industry and opened a lot of job opportunities.

Luckily, getting car insurance does not have to be a hassle. Today’s world of car insurance allows us to easily shop for insurance by getting quotes online and contact accommodating agents which will help us during the whole process. Not to mention, all the car insurance discounts available out there that can help you save big and make you feel secure at the same time.

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