Auto Insurance: Some Intriguing Facts About It You Might Not Know

More than a hundred years ago, in 1897 to be exact, Travelers Insurance wrote the very first auto insurance liability policy. Since then, things have certainly changed. These days, nearly every state in the US requires at least some level of auto insurance. Only one state, New Hampshire, exempts residents from having to have auto insurance, but only if the driver can prove they have the ability to pay for any possible damages they might cause in case of an automobile accident.

Besides the United States, most other countries in the world also require at least minimal coverage. Why is that?

Once automobiles became a thing, it became obvious to anyone who was paying attention that cars would crash. It was also obvious that most of the time one or the other of the drivers involved would be at fault. Clearly, not every driver would be able to pay for the damages he or she caused.

It followed that people whose property was damaged by at-fault drivers would therefore suffer economic injury. Further, the economy as a whole would also eventually suffer as well. Auto insurance became the solution to this conundrum.

 

RELATED ARTICLE: SELF-DRIVING CARS ARE JUST AROUND THE CORNER

 

Two Kinds of Auto Insurance

There are basically two kinds of auto insurance: collision coverage and liability insurance.

Collision insurance protects you and your car from theft, vandalism, and damage. Unless you owe money on the car—in which case your lender will probably require it—you don’t generally have to have collision coverage unless you choose to.

Liability coverage, on the other hand, is intended to protect other people and their property. This is the kind of auto insurance that governments most often require of drivers who drive within their borders.

 

Cheaper Than Ever

The digital age has brought about a big decrease in auto insurance premiums, since it’s so easy to compare policies thanks to the Internet. If you’re not taking advantage of this leap in auto insurance awareness, you’re missing a great opportunity.

 

 

Essential—or Not?

If your business owns one or more vehicles, you probably don’t even question whether or not your company needs auto insurance. Further, it’s important to remember that it’s the owner of the vehicle, not the driver, who is considered to be the responsible party in case of an accident. And you certainly wouldn’t want to jeopardize your business by failing to insure your vehicles.

 

Disparities Explained

Car insurance premiums used to be priced pretty evenly across the board. Then insurers began assessing risk factors that they now take into account. Among these:

• Some states in the US have higher rates of accidents than others. If you live in one these states, your cost for insuring your vehicles will be higher.
• Your credit rating as well as your driving record can affect your auto insurance premiums.
• Statistically speaking, married drivers have fewer accidents than single drivers. Therefore, married drivers get lower premiums.
• Younger drivers have more accidents than older drivers. So people who are younger than 25 have to pay higher premiums.
• The kind of work you do for a living affects your rate. Yes, underwriters have teased facts about liability risks among occupations from their mountains of statistics.

 

A Fact of Modern Life

Let’s face it. If we’re going to remain dependent on automobiles to carry us about from place to place in our modern world, auto insurance is simply a given. Do your research, come up with the best and least expensive policy you can find, and give in to the fact that auto insurance is here to stay.

 

About the Author

Carrol Strain is a Top Rated Premium copywriter on Upwork, as well as editor and on-call writer for the Business Opportunities blog.

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