Insurers are generally fast on the uptake when it comes to new markets. Yet they were slow this time to offer auto insurance in America. Perhaps there were so few vehicles the chances of a collision were statistically unlikely, and they did not want to fleece the public of their money. Stranger things have happened but not this time.
The First Policy for Auto Insurance in America
In 1897, one Gilbert L Loomis bought a policy for his auto from the Travelers Insurance Company. This company formed in 1864 to provide travel insurance for railroad passengers, journeying under what were then risky and dangerous conditions, and we understand for people traveling on horses and in carriages too.
Early autos were rickety ‘string and wire’ affairs with questionable steering controls and brakes. Many were carts with engines and drive trains cobbled on by inventive spirits. Collisions were almost inevitable and they did happen.
We can only assume Gilbert L Loomis wanted to manage the risk, especially when some disputes settled with impromptu boxing matches / pistols at ten yards, or so we believe might have been the case in those days. However, we must be honest. Gilbert L Loomis’ policy may have been the first auto insurance in America, but it was actually a horse and carriage policy, and we have not found a record of any claim.
Suitably Inspired, Travelers Insurance Diversifies
Travelers Insurance management presumably got the point. The next year, they unveiled their first exclusive car insurance policy. Dr. Truman Martin of Buffalo, New York was first taker in February 1898. His $12.25 purchased $5,000 accident liability cover against colliding with one of around 4,000 cars, or more likely, several of approximately 17.5 million horses drawing carriages in the U.S.
From then, things mushroomed in the USA. As autos became more indispensable, fire and theft policies followed in 1902. Americans were hooked, although uninsured drivers were often unable to compensate for the damage they caused, as continues today.
By 1925, the state of Connecticut had had enough. Its lawmakers approved a financial responsibility bill whereby automobile owners had to prove they could afford the accidental costs of driving. America’s insurers rubbed their hands in glee as the number of autos grew exponentially.
Let Bonzah Help You When You When You Rent an Auto
We won’t mention names, but we know for a fact some auto rental companies make more money from selling insurance, than basic rental charges for hire cars. We have a great deal for you in terms of rental auto insurance in America, and anywhere beyond that you dream to go. We provide peace of mind from as little as $7.99 a day. Could you beat that, anywhere in the business? We think not.
Image: Early Auto Accident: Arthur Goss BY CC 2.0