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The history of car insurance

Car insurance is something that we all need once we have our car and definitely something that we all do appreciate the importance of. But, do you know where did it come from? For those of you who don’t, today we intend to share an article about its history.

It is reported that insuring vehicles can date as back as 3000 B.C in China. Merchants transporting their goods using boats would insure the goods to protect against losses while sinking or being attacked by pirates. “Marine” insurance expanded as the population increased.

Afterwards, some forms of marine insurance was seen in the hands of the Greeks, Phoenicians and Babylonians and it was later included even in the Code of Hammurabi. In the 11th  Century, Danish business owners and investors decided to establish a stronger and more fixed form of marine insurance covering bigger cargos and shipments.

Written records about insurance appeared in the merchant cities along the Mediterranean, like Venice and Florence. Merchants and investors began to mutually pool their money and charge premiums, which would then be issued to members in the case of loss. This is still the basic form of auto insurance that we practice today.

Of course, car insurance developed in the same path with the car itself. In 1893 the first gasoline-powered car was built in the US by Charles and Frank Duryea and had always been a type of car insurance for these vehicles, based on the marine insurance, to protect the owner from loss. Then in 1898 that the first car insurance policy covering liability was issued to a man named Truman J. Martin.

Having come through it all, now car insurance is an inseparable part of our life and there are a variety of choices while taking out one. Thanks to the modern society, today we can easily contact with insurance companies offering their services and get insurance for our cars.

The source:

www.carinsurance.org

Sherzod Karimov

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