Driving is considered a privilege and motorists are required by law to be insured to protect themselves and others in case of an accident. Many people do not see the point of requiring coverage for all drivers. That is, until they get into an accident and reach for the insurance card thankfully. The idea of insurance was developed long before a automobile was dreamed of.

Most people agree that car insurance was inspired by a Chinese practice back in 3,000 BCE. Ships with precious cargo were sent out across the Atlantic Ocean and sometimes lost at sea. Tiring of losing money on the lost goods, the shareholders of the shipping companies started to take out insurance plans before each voyage. Marine insurance continued to grow in popularity. Lloyd's of London published a list in the 1600s of insured ships. This directory and the 1906 Marine Insurance Act is the basis of marine insurance today.

The first automobile policy was written in England in 1895. The first instance in the United States was written three years later by a Connecticut company by the name of Travelers Insurance. The price Dr. Truman Martin paid for that $5,000 to $10,000 of liability insurance was only $11.25. In 1927 Massachusetts became the first state to make a law ordering drivers to have insurance. A few years later, the Road Traffic Act was passed in the UK. It forced motorist to have a liability policy against injury and death of others. At this time, there were not multiple companies to choose from so the rates and policies were the same for everyone. It was not until after WWII that auto insurance in the US really took off. This growth was caused by the booming automobile industry and the new highways bursting up everywhere.

Nowadays, all fifty states require some sort of insurance policy for drivers, if only liability coverage. The mandates vary greatly from state to state however. The rates and policies have also changed dramatically. Today, your rates will be calculated by factoring in a number of things including age, sex, credit score, type of vehicle, and driving record.