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
· 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.
The content available via Grange.com is for informational purposes only and may not be used for any other purpose. Content provided or expressed on Grange.com, including that of third parties, may not reflect Grange Insurance Association’s (GIA) policies or conform to any agreement you may have with GIA and its subsidiary companies. Please contact a licensed insurance agent to obtain particular advice.