When and where did insurance begin?
China and Babylon were the first to have insurance more than two thousand years ago. It was also used to control income in the society. It is clear that such sophisticated insurance systems were created by a well-organized society whose leaders were able to gather statistics about the society using censuses. They saw that merchandise was often being transported from one place to the next due to theft, pirate attacks, and accidents. They came up with a solution: modern-day insurance.
How to Get Protection from Accidents
The development of steamboat and railroad in 1800 America enabled a faster social development. This development led to many accidents, including those resulting from work in factories. Because families were poor and didn’t have enough money, it was hard for them to deal with this new situation. Franklin Health Assurance Co. was the first American insurance company to offer accident insurance in 1850. It was difficult for any family member to help in an accident situation so people started looking for ways to protect themselves. This was achieved by insurance companies asking people to pay a small amount so they could collect more money in case of an accident. Sixteen years later, sixty insurance companies were operating across the country.
The first state to declare “mandatory” auto insurance
The development of the automobile industry in America accelerated in 1900. As a result, there was an increase in car accidents. Before being in an automobile accident, many people didn’t realize how crucial it was to protect their assets. Although car insurance was not required at the time, people began to realize how important it was. Massachusetts was the first state to mandate car insurance before drivers even obtained their licenses in 1956. It became mandatory for all Americans to have auto insurance a few years later. This brought about a lot of change and order in society.
It is impossible to get rid of “mandatory” auto insurance
In developed countries, insurance covers everything. Many of these countries believe that the more insurance you have, the better. Auto insurance must be compulsory in the most advanced countries. In the United States alone, millions of accidents involving cars result in more than 2 million injuries and 35,000 deaths each year. The only solution to these problems has been an efficient and mandatory car insurance system. Many people believe that “liability insurance” would be the best option. However, this would require too much money and only small numbers of people could afford it. Many problems could be solved if governments offered to pay for it.
Chaos without auto insurance
Look at any country in the world: their insurance services are either poor or inefficient, or there is no insurance. Cuba has a lot American cars, most of which are over 50 years old. The owners of these cars don’t have car insurance, and they face many problems every day. They must have their own “insurance”, where they can put money “under the pillows” in case of an accident or any other mechanical problems. They need to be able to pay for all kinds of situations.
Insurance for autos is not mandatory
Auto insurance won’t be required in the near future. This is the good news. Accidents will almost disappear with the advancements in technology within the auto industry. Cars will be able to process all types of information in real-time, and they will be “smart”. They will be able to see the exact location of all vehicles within a radius of two kilometers. If a truck comes at you from the other direction, for example, your car will be able to determine if it is drunk, tired, or has brake problems. Both cars will also know this information in sufficient time to avoid an accident.
The bad news…
Unfortunately, we don’t know when it will arrive. It’s better to get it sooner than later and earlier than never. In the meantime, I recommend that everyone get liability car insurance.