Car insurance is the most widely purchased type of insurance coverage. Nearly anywhere you go in the world automobile drivers are required to possess car insurance. Car insurance is applicable to all types of automobiles and their drivers. It covers physical damage caused to your vehicle and any other vehicles you might come in contact with.

Car insurance also offers liability protection. What this means is if you have an accident and another person is injured, your car insurance policy will cover a portion of their medical expenses. Liability car insurance can also offer protection against property damage.

The concept of car insurance can be traced back to the ancient Chinese. When the new colonies had been settled the Chinese oftentimes sent cargo ships filled with supplies across the Atlantic Ocean. These cargo ships were usually owned by a group of investors.

Occasionally, cargo ship owners would lose a ship due to sinking or piracy. In order to protect their ships and cargo, these investors took out insurance polices on the ship. Now known as marine insurance, this type of policy is still an effective way to protect ships and the cargo they carry.

Car insurance is a spin-off of marine insurance. It was developed after policymakers decided that operating a motor vehicle on public property was a privilege. It was ordered that motorists must purchase car insurance to protect innocent third parties against injury or property damage.

The first car insurance policy that offered liability coverage was written by an English company in 1895. The first liability car insurance policy written in the United States took place in 1898 and was written for Dr. Truman J. Martin.

The first mandatory car insurance law went into effect in Massachusetts in 1927. However, car insurance polices actually came into play much earlier. In fact, car insurance policies can be traced back one hundred years prior to the introduction of the motor vehicle in the United States in 1908.

Today, every state in the United States has adopted a mandatory car insurance requirement. Although car insurance obligations vary widely from state to state, all require a minimum of liability coverage to protect innocent victims from harm. Unfortunately, not all vehicle owners adhere to the laws of their state.

One of the best resources for locating information about car insurance is through the Department of Motor Vehicles website. There you can locate the various car insurance agencies, as well as learn about the requirements of your state.

It¡¯s important to be familiar with the car insurance requirements of your state because if you do not carry the appropriate coverage and are involved in an accident, you could end up serving time in jail.

In addition, if you do not carry the appropriate car insurance coverage and are involved in an accident that causes bodily harm to another person, you could lose everything you own ¡ª including your home.

Car insurance is not a luxury, it is a necessity. It can save you thousands, perhaps even hundreds of thousands of dollars, should you ever be involved in a car accident. Most insurance companies offer monthly payment plans, making it easier on your budget.

Car insurance premiums are based on many factors including your age, sex, driving record, credit history, and the type of vehicle you drive. If you have multiple speeding tickets, or have been involved in multiple accidents, you will pay a much higher premium.