Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid reason of insurance products including home, life, car, and commercial and working immediately with indemnity customers to understand their needs. She has since used that cognition in her more than ten years as a writer, largely in the insuranc …

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Leslie Kasperowicz

Farmers CSR for 4 Years

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his kin ’ second policy agency, FCI Agency, for 15 years ( BBB A+ ). He is licensed as an agent to write property and casualty policy, including home, car, umbrella, and dwelling fire indemnity. He ’ s besides been featured on sites like Reviews.com and Safeco. He reviews message, ensuring that ex-wife …
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Daniel Walker

Licensed Auto Insurance Agent

column Guidelines : We are a rid on-line resource for anyone concern in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car indemnity related. We update our web site regularly, and all content is reviewed by car indemnity experts .

Things to Remember…

  • The first state to take advantage of what the car insurance industry was offering was Connecticut, in 1925
  • Until 1957, Massachusetts remained the only state that required auto insurance by law
  • Because of this mandatory requirement, almost all drivers in nearly all states purchase auto insurance
  • New Hampshire, the Live Free or Die State, still allows drivers the choice to drive uninsured

broadly, car insurance became mandatary in 1927. The first state to offer car liability insurance was Connecticut, in 1925. Connecticut required drivers to demonstrate fiscal province in the event of an car accident resulting in injury, death, and property damage .
Auto insurance was simply one of the most cost-efficient ways to protect the driver from license suspension and to do the right thing in the event of an auto accident resulting in serious consequences.
rightfully mandatary car policy became necessity in most states in the 1970s. Massachusetts was the foremost state ( second to Connecticut ’ randomness fiscal province codified and premise ) to make car indemnity mandatary for drivers in 1927 .
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What did early Connecticut auto insurance laws require?

AdobeStock_1181532-1600x1600 Connecticut serves as a home submit of many policy companies. The rationality is that it was the first country to offer car liability indemnity .
In Connecticut, a driver involved an accident resulting in injury or property damage ( greater than $ 100 ), was required to demonstrate fiscal responsibility ( at a minimal degree of $ 10,000 ) according to Connecticut Public Acts, Chapter 183 in 1925 .
According to Connecticut law, the driver could comply with the fiscal duty demonstration by :

  • Purchasing motorist liability insurance in this required amount
  • Providing a bond at this amount when required to do so
  • Depositing bonds, stocks, or other negotiable financial instruments of this amount or greater
  • Depositing currency in this amount

If the driver didn ’ t perform any of these actions to demonstrate fiscal responsibility, his license was suspended. If an hurt person didn ’ metric ton complain after being involved in an accident, the department of state just didn ’ t know about it !

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How did auto insurance laws differ from financial responsibility laws?

Although the jurisprudence stated that motorists weren ’ thyroxine required to demonstrate fiscal responsibility until an accident occurred, many people decided that preparing for an accident before it happened was an excellent way to transfer risk .

That ’ randomness why, at least in the begin, car insurance was considered an optional risk management tool .

policy companies were besides able to underwrite car indemnity on future car accidents or mishaps. Drivers with a desire to think ahead though early auto insurance was a good idea.
Although Connecticut ’ s codified required that drivers prove fiscal province after an accident ( and the state allowed one accident anterior to making the driver comply with the codified ), many people thought that car insurance provided excess fiscal security .
Connecticut ’ mho lawmakers maintained the optionality of car insurance as a measure of absolve will .

When did auto insurance laws for other states appear?

For these reasons, most states passed fiscal province and car policy laws from 1925 through 1965. The four kinds of laws passed by the states included :

  • Financial responsibility statutes
  • Mandatory auto insurance laws
  • Uninsured driver penalties

Massachusetts ’ sulfur 1925 codified was a forward-thinking law. Until 1957, Massachusetts remained the only state that required car policy by jurisprudence. New York followed by passing a law in 1956. North Carolina then joined the group in 1957 .
soon subsequently, all states ( except Wisconsin, Tennessee, and New Hampshire in the year 2000 ) required car indemnity for all drivers .
By 2010, 49 states and the District of Columbia required compulsory car policy .

Are there any states today that do not require auto insurance?

AdobeStock_90272977-1600x1600 New Hampshire, the Live Free or Die State, still allows drivers the choice to drive uninsured. It remains steadfast in its support of each driver ’ s fiscal responsibility to operate and drive an car.

Because of this mandatary prerequisite, about all drivers in about all states purchase car insurance. besides, it ’ randomness why uninsured motorist auspices remains identical crucial .
now you know about when car insurance became mandate in the United States. Auto policy remains the simplest way to demonstrate fiscal duty in all 50 states .
Comparing your car indemnity rates with those of other car indemnity providers makes good fiscal sense. Get started comparing car rates by entering your ZIP code below !

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