News

Grange Insurance Association Presents: National Car Insurance Day Fun Facts

Feb 05 2015

Grab a pen and get ready to mark your calendar. We just celebrated National Car Insurance Day on Feb 1, 2015. Although you likely won’t find a greeting card befitting this holiday, Grange Insurance Association has put together the next best thing—fun facts about auto insurance.   

How Did Car Insurance Begin?
When cars were manufactured in earnest in the late 19th to early 20th centuries, car accidents inevitably followed. In response, Massachusetts and Connecticut asked drivers to carry financial responsibility insurance which served as a precursor to the car insurance we know today. Massachusetts became the first state to legislate compulsory, or mandatory, insurance for automobiles.

Kinds of Car Insurance
Car insurance is divided into different types of coverage. Each state mandates the minimum amount of coverage required to operate a vehicle legally. Below is a list of the commonly written automobile insurance policies:

Liability coverage comes in two different forms—bodily injury or property damage--and is required in almost all states.

Collision coverage protects drivers from the high out-of-pocket cost for having to repair their vehicle in the event of an accident involving a collision. In many cases, automobile loan lenders will require collision coverage on financed vehicles. 

Comprehensive coverage protects drivers from unforeseen incidents from which they had no control—environmental factors (fire, water, and wind damage), vandalism and theft are commonly covered by comprehensive insurance.

Minimum Liability Coverage
In the states where Grange Insurance Association is sold, the minimum limits vary:

·         In Oregon and Wyoming, the minimum policy coverage for motorists is bodily injury and property damage liability for $25,000 per person / $50,000 per collision for bodily injury to 3rd parties and $20,000 per collision for damage to private property.

·         In Idaho and Colorado, the minimums are $25,000 / $50,000 / $15,000

·         For Washington state, the minimum liability coverage comes out to  $25,000 / $50,000 / $10,000

·         California’s is $15,000 / $30,000 / $5,000

Fun Facts
·         New Hampshire and Virginia are the only states in the union that do not require automobile insurance. Despite this, New Hampshire’s uninsured motorists are well below the national average.

·         The color of your car has nothing to do with your insurance premium—this is a complete urban legend.

·         The first car insurance policy ever written was in 1897.

You can observe National Car Insurance Day by promoting responsible driving with your friends and family.

Your circumstances may change from year to year, so Grange Insurance Association recommends taking a yearly inventory of your insurance policies. Use this opportunity to perform an annual review of your automobile coverage policy with your Grange Insurance Association agent today

Recent

How to Make Sure Pipes Don’t Freeze (And What To Do If It Happens!)
11/28/2018 4:02 PM | Grange Insurance
Top 7 Questions You’ve Asked About Insurance
10/30/2018 10:29 AM | Grange Insurance
Signs It’s Time to Update Your Homeowners Insurance Policy
9/18/2018 12:08 PM | Grange Insurance
5 Things You May Not Know About Livestock Coverage
9/11/2018 10:53 AM | Grange Insurance
2019 Academic & Vocational Scholarships
8/29/2018 4:24 PM | Grange Insurance

WHY CHOOSE US?


Personal Attention



Trusted Advice



First-Class Claims Service




ValChoice #1
Best Value in Home Insurance
Learn More




A.M. Best "Excellent"
Financial Strength Rating
Learn More