Car Insurance Day is held every February 1. While this might elicit an eye roll, the day, seemingly “undeserving” of the honor attributed, clearly advocates otherwise with its significance. It reminds us to take safe driving seriously and ensure our insurance policy is reviewed and updated regardless of whether our car is the most popular brand in the country. The day also urges us to look back in time and appreciate the bulk of cash saved and the headaches prevented. Car insurance helps provide financial protection in case of accidents, fire, and theft. In 1897, Gilbert J. Loomis made history as the first person to buy an automotive liability insurance policy
History of Car Insurance Day
Car insurance has been around since the first car was invented by Karl Benz in 1886. However, history has it that American statesman and inventor Benjamin Franklin, the Founding Father of the United States and one of the leading intellectuals of his time, kicked off the initiative through the Philadelphia Contributionship along with some fellow firefighters in 1751. It became the first company within the American colonies to offer fire insurance as well as the nation’s oldest successful property insurance company.
This was the flagship car insurance borrowed from. Hence, Franklin is credited with founding car insurance, even though at the time, cars weren’t even invented yet. In 1897, the course of history was written, thanks to mechanic Gilbert J. Loomis of Westfield, Massachusetts, who got the first automobile insurance policy on October 20, 1897, for the one-cylinder vehicle he built. This move was cemented as the genius idea that revolutionized driving with the inclusion of safety practices, training, and licensing.
Loomis bought his first policy at $1,000 from Travelers in 1897 in Dayton, Ohio. ‘Travelers’ was founded in 1864 in Hartford. It offered protection should his car get damaged, hurt, or should he kill anyone with his vehicle. By the 19th century, a major boost had been witnessed in the car insurance industry with Massachusetts leading the movement by becoming the first state to order mandatory insurance for cars in 1927 by requiring the purchase of auto liability insurance.
Car Insurance Day timeline
Through the Philadelphia Contributionship, Benjamin Franklin rewrites history as the first company ever to offer fire insurance.
The liability insurance policy is issued by the Travelers Insurance Company for $1,000.
By this time, insurance begins catching on, and new plans are put in place to protect against fire as well as automobile theft.
This time extending and offering protection for automotive, liability, and fire insurance.
The state launches a bold move mandating liability insurance.
Car Insurance Day FAQs
Who was the inventor of car insurance?
Gilbert J. Loomis, in 1897, became the first person to buy an automotive liability insurance policy, thereby leading the way.
What types of car insurance exist?
Liability coverage protects you if you’re the cause of an accident, or cause damage to persons or property.
Collision insurance helps cover your car in case of an accident.
Comprehensive insurance helps provide coverage against fire, theft, and other hazards.
The list goes on: gap insurance, medical coverage, etc.
Do I need car insurance?
Each region has its rules and regulations; in most places, not having insurance could attract grave consequences.
How to Observe Car Insurance Day
Work through your records
There's no point in having outdated insurance. Instead, look through everything to ensure your coverage is updated.
A peep through the records will give you something to smile about. Insurance is a lifesaver, helping save money since its inception.
It's not enough to renew your safety vows. If you don't have a license, please grab one together with insurance that secures your peace.
5 Important Facts About Insurance
First automotive liability insurance policy
Gilbert J. Loomis became the first person to buy an automotive liability insurance policy in 1897 for $1,000.
World's first automobile built
Karl Benz made history in 1885 with his three-wheeled Motor Car dubbed "The Benz Patent-Motorwagen ("patent motorcar.") It was powered by gas. On January 29, 1886, he applied for a patent.
Price is right
The Benz Patent-Motorwagen originally cost $1,000 in 1885.
World's most expensive car
The Maserati Quattroporte stands top as the world's most expensive luxury car to insure with an average annual premium of $4,271.
Lionel Messi Insured for $900 million
The football star insured his left foot for 900 million U.S. Dollars.
Why Car Insurance Day is Important
It reminds us of the blessing of insurance
Legal suits avoided, financial stability, peace of mind, with the emergence of car insurance, we get coverage from theft, vandalism, accidents, and much more. This brings us relief and helps us lead better lives.
Car insurance goes beyond
Not only is your car insured, but the coverage also covers medical expenses that may arise after an accident and prevents legal action from being taken if you're on the wrong side. This is very handy for accidents that occur off the road, as well as on.
Helps agents and consumers keep connected
Car Insurance Day helps maintain a strong relationship between agents and customers. This brings a personalized feel when the latter has questions that need answering.
Car Insurance Day dates